What working capital actually is
Working capital is money for running the business day to day. Not a building. Not a five-year plan. Rent, payroll, supplies, a marketing push, a vendor who wants payment up front.
With this product you receive a lump sum and repay it over an agreed schedule. You decide where it goes inside the business. It is the most flexible option on the menu, which is why most owners start here.
When the bank says no
Banks like long histories, high scores and collateral. A lot of good businesses miss one of the three. Maybe a rough patch in 2023 dropped your score. Maybe you own nothing big enough to pledge. The bank says no, and the bills still show up on the first.
Through our partner Merchant Fund Express, the review starts with your deposits and revenue. FICO 500 and up is considered. That gives a lot of owners a real shot when the bank gave them none.
Three ways owners use it
The landscaper waiting on net-60
For illustration: a commercial landscaping company doing $110,000 a month lands a property management contract that pays 60 days out. Working capital covers crew wages and fuel until the checks start.
The dental office between reimbursements
Insurance pays slowly. Staff and lab bills do not wait. A lump sum smooths the timing.
The shop with a slow quarter
Seasonal dips are normal. Working capital keeps the lights on so you are ready when traffic returns. More on that at slow-month cash flow funding.
How it compares
Working capital is a lump sum on a schedule. If you would rather repay as a share of card sales, look at a merchant cash advance. If you want to draw only what you need, when you need it, a business line of credit may fit better. Buying a specific machine or vehicle? Equipment financing is built for that.
What it takes to apply
- A 5-minute application
- About three months of business bank statements
- No tax returns
- A soft credit pull to start
Amounts run from $25,000 to $5,000,000, and qualified businesses can be funded in as little as 24 hours. Sole proprietors can apply. Apply for working capital.
Frequently asked questions
What can I spend working capital on?
Day-to-day business costs: payroll, rent, inventory, supplies, marketing and similar expenses. It is meant for operating the business.
How is working capital different from a line of credit?
Working capital comes as a lump sum repaid on a set schedule. A line of credit lets you draw from a limit as needed and repay as you go.
Do I need collateral?
Working capital is generally reviewed on revenue and deposit history rather than a specific asset you pledge. Your offer details will spell out the terms for your file.
Will a past rough patch on my credit stop me?
Not on its own. FICO 500 and up is considered, and the review leans on your current business revenue.
How fast can I get working capital?
Qualified businesses can be funded in as little as 24 hours after approval and paperwork.