Working Capital Loans: Overview and Best Options
Compare different lender options to find the best working capital loan for your needs. Choose why you need funding to get started.
| Loan | NerdWallet Rating | Best For | Max loan amount | Min. credit score | APR range | Max term length | Learn more |
|---|---|---|---|---|---|---|---|
 SBA 7(a) loan Read reviewwith Fundera by NerdWallet | Best for large loan amounts | $5,000,000 | 650 | 10.50-14.00% | 25 years | with Fundera by NerdWallet | |
 Fora Financial - Online term loan Read reviewwith Fundera by NerdWallet | Best for bad credit borrowers | $1,500,000 | 570 | Undisclosed | 18 months | with Fundera by NerdWallet | |
 Giggle Finance - Merchant cash advance Read reviewwith Fundera by NerdWallet | Best for no credit check | $10,000 | 300 | Undisclosed |
| with Fundera by NerdWallet | |
 Bluevine - Line of credit Read reviewwith Fundera by NerdWallet | Best for lines of credit | $250,000 | 625 | 14.00-48.00% | 6 months | with Fundera by NerdWallet | |
 Headway Capital - Line of credit Read reviewwith Fundera by NerdWallet | Best for flexible repayment options | $100,000 | 625 | 35.00-80.00% | 24 months | with Fundera by NerdWallet | |
 Fundbox - Line of credit Read reviewwith Fundera by NerdWallet | Best for startup businesses | $150,000 | 600 | 36.00-99.00% | 6 months | with Fundera by NerdWallet | |
 iBusiness Funding - Online term loan Read reviewwith Fundera by NerdWallet | Best for established businesses that need fast financing | $500,000 | 660 | 15.22-45.00% | 7 years | with Fundera by NerdWallet |
A closer look at our picks for the best small business loans
Best for large loan amounts
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loans have low interest rates and terms up to 10 years for working capital use cases. These loans are issued by banks and credit unions and backed by the SBA.
with Fundera by NerdWallet
Best for bad credit borrowers
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial stands out as a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue. Fora offers large maximum loan amounts and can provide prepayment discounts for those who repay early.
with Fundera by NerdWallet
Best for no credit check
Giggle Finance - Merchant cash advance
with Fundera by NerdWallet
Max loan amount
$10,000
Min. credit score
300
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Giggle Finance is specifically designed to offer small amounts of capital to freelancers, contractors and self-employed individuals. The company provides same-day funding through a simple application process. Giggle is also a standout option for borrowers with bad credit — as the company does not check your credit and instead uses your bank information to underwrite your application.
with Fundera by NerdWallet
Best for lines of credit
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Bluevine stands out for its fast funding speed and flexible qualification requirements. To get a line of credit, you can apply quickly online and receive funding in as little as 24 hours. Newer businesses and borrowers with bad credit may be able to qualify. Bluevine also offers a larger credit line maximum compared to some competitors and doesn’t charge draw or account maintenance fees.
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Best for flexible repayment options
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
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Best for startup businesses
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox is one of the best online line of credit options for startups. Businesses with just three months in business may be able to qualify. Fundbox is also a good option for borrowers with bad credit and businesses with low revenue. The lender offers a flexible short-term line of credit that can fund within one business day after approval.
with Fundera by NerdWallet
Best for established businesses that need fast financing
May fund quickly
iBusiness Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders. And with a large maximum funding amount, this loan can be used for a variety of long-term expansion projects, as well as refinancing existing debt.
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Table of contents
👉 Have bad credit?
Check out NerdWallet's best business loans for bad credit
A closer look at our top picks for working capital loans
SBA 7(a) loan
Best for large loan amounts
At a glance:
- Loans up to $5 million.
- Funding in as little as two weeks.
- Usually requires a650+ credit score and24+ months in business.
🔍 Why we like it:
SBA 7(a) loans are an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts.
📋 Key details:
- Loan type: Term loan.
- Interest rate range:10.5% to14%.
- Repayment term: Up to 25 years.
- Speed: As fast as two weeks.
➡️ Good fit for:
Established businesses with good credit that need large amounts of working capital.
Fora Financial
Best for bad credit borrowers
At a glance:
- Loans up to $1.5 million.
- Funding in as little as 24 hours.
- Requires a570+ credit score and6+ months in business.
🔍 Why we like it:
Fora Financial is a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue.
📋 Key details:
- Loan type: Term loan.
- Repayment term: Up to18months.
- Speed: As fast as 24 hours.
➡️ Good fit for:
Businesses with bad credit, but strong revenue that need fast access to working capital.
Giggle Finance
Best for no credit check
At a glance:
- Advances up to $10000($20,000 for repeat customers).
- Funding in as little as a few hours.
- Requires3+ months in business and doesn't check your credit score.
🔍 Why we like it:
Giggle Finance offers small amounts of capital to contractors, self-employed individuals and other small-business owners. Giggle is a standout option for borrowers with bad credit — as the company does not check your credit as part of the application process.
📋 Key details:
- Loan type: Merchant cash advance.
- Repayment term : Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
- Speed: As fast as the same day.
➡️ Good fit for:
Businesses with bad credit that can’t qualify for other options.
Bluevine
Best for lines of credit
At a glance:
- Credit lines up to $250000
- Funding in as little as 24 hours.
- Requires a625+ credit score and12+ months in business.
🔍 Why we like it:
Bluevine offers flexible lines of credit that can be used to manage cash flow needs. Its fast funding speed and lenient qualification requirements make it a good option for a variety of businesses.
📋 Key details:
- Loan type: Line of credit.
- I nterest rate range:14% to48%.
- Repayment term:6months.
- Speed: As fast as 24 hours.
➡️ Good fit for:
Business owners with fair credit who need quick, repeat access to working capital.
Headway Capital
Best for flexible repayment options
At a glance:
- Credit lines up to $100000.
- Funding in as little as 24 hours.
- Requires a625+ credit score and6+ months in business
🔍 Why we like it:
Headway Capital offers a business line of credit that’s a good choice for those who can’t qualify for traditional financing. It offers three repayment term options — more than other similar competitors.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range:35% to80%.
- Repayment term:12, 18 or24months.
- Speed: As fast as the next business day.
➡️ Good fit for:
Startups or low revenue businesses that want a fast, flexible line of credit.
Fundbox
Best for startup businesses
At a glance:
- Credit lines up to $150000.
- Funding in as little as 24 hours.
- Requires a600+ credit score and3+ months in business.
🔍 Why we like it:
Fundbox is one of the best online line of credit options for startups. It’s also a good option for borrowers with bad credit and businesses with low revenue.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range:36% to99%.
- Repayment term:3or6months.
- Speed: As fast as the next business day.
➡️ Good fit for:
Startups that want fast and flexible access to working capital.
iBusinessFunding
Best for established businesses that need fast financing
At a glance:
- Loan amounts up to $500000
- Funding in as little as 48 hours.
- Requires a660+ credit score and24+ months in business.
🔍 Why we like it:
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders.
📋 Key details:
- Loan type: Term loan.
- Interest rate range:15.22% to45%.
- Repayment term: Up to84months.
- Speed: As fast as the next business day after approval.
➡️ Good fit for:
Established businesses that want fast working capital and to repay it over a long period of time.
What is a working capital loan?
A working capital loan is a short-term business loan
Working capital loans are often:
- Quick to fund.
- Have short repayment periods.
- Issued by banks, credit unions or online lenders.
When you should consider a working capital loan
You might need a working capital loan in the following situations:
Types of working capital loans
Business term loans
Business lines of credit
SBA loans
SBA lines of credit
Invoice factoring
Merchant cash advances (MCAs)
Where to get a working capital loan
You can get a working capital loan from several different sources, including:
- Banks and credit unions. Traditional lenders are good options for established businesses with collateral and strong credit, and tend to offer the lowest interest rates.
- Online lenders. These lenders may make more sense if you have a poor credit history, though they will typically charge higher APRs than
business loans from banks online lenders - Community development financial institutions (CDFIs) . CDFIs can include credit unions and nonbank lenders, which may also offer working capital loans.
CDFIs
Pros and cons of working capital loans
Pros
- Suitable for cash flow gaps and seasonal slows.
- Flexible funds that can be used for a variety of purposes
- Accessible to a wide variety of businesses.
- Can fund quickly.
Cons
- Some lenders may require daily or weekly payments.
- Can be expensive.
- Lenders may charge interest as a factor rate — which can make it difficult to understand the cost of your financing.
How to get a working capital loan
The general process for getting a working capital loan is similar to other loan types. You can follow these steps:
1. Understand your financing needs. Working capital loans are typically used for short-term business needs. You should start by assessing whether you really need capital now — or if you can wait in order to qualify for a longer-term, more affordable loan. If you decide to seek financing now, determine how much capital you need and how much you can afford.
🧮 Join the 70,000+ small-business owners who get nerdy with our free business loan calculator
2. Evaluate your qualifications . Consider common business loan requirements
3. Research lenders. Do some research to find lenders that suit your specific business needs. You can read online reviews to get a sense of what it’s like to work with a particular lender.
4. Gather business documents. As part of your application, you’ll need to provide financial statements like profit and loss statements, bank statements or tax returns, as well as business and legal documents, like your operating agreement and business plan
5. Submit your application. Once you submit your application, online lenders can review it in as little as a few hours, while banks take longer. SBA loans may have the longest application timelines
» Need more guidance? How to apply for and get a business loan
Alternatives to working capital loans
If you’re not sure that a working capital loan is right for your needs, you might consider these alternatives:
For newer businesses
For those who can’t qualify for traditional financing
For those looking to avoid debt
If you don’t want to take on debt to obtain working capital, you might consider alternatives such as crowdfunding small-business grants
Frequently asked questions
Can I get a working capital loan with bad credit?
What are the disadvantages of working capital loans?
How much can I get for a working capital loan?
Last updated on May 19, 2025
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