Get funding for nearly any type of day-to-day business expense. Our top picks have great rates, terms, flexible qualification requirements, and fast funding speeds.
A working capital loan will allow you to use funds for nearly any type of day-to-day business expense, like payroll, supplies, inventory, rent, utilities, or insurance. Not all loans are created equal though, and my picks for the best working capital loans have a combination of fast funding speeds, flexible qualification requirements, competitive rates & terms, and excellent customer service.
The bottom line is that no matter your circumstances or needs, you should be able to find a lender from the following list that’s suitable for you:
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I chose Bluevine as the best overall because as a line of credit, it offers you the ability to draw funds continuously whenever you need. Of course, you’ll need to continue making your payments in a timely manner, and you’ll be given a maximum credit limit, but it allows you to avoid having to apply for a brand new loan every time you need additional funds.
Another thing I love about Bluevine is that when you combine it with a Bluevine checking account (an account that also topped our list of the best business bank accounts), you can get instant access to funds. Without it, you can still get quick access, but after the standard 1-3 business day waiting period for the transfer to be processed and funds made available. Bluevine also has options for a weekly or monthly repayment plan. Its monthly repayment plan could be more preferable from a cash flow perspective, but it does require stricter requirements to be eligible.
One thing that I think could be improved is its customer ratings. It has a 4.2-star rating on Trustpilot as of writing — and while that’s a pretty good score, I generally prefer companies that have at least a 4.5-star rating and above. With that said, the outstanding quality of Bluevine’s line of credit product is why I selected it as the best overall option in this guide. If you’re interested in seeing what the company can offer you, visit the Bluevine website, where you can apply with no negative impact on your credit score.
If you want as many options for loan programs, Lendio is a good company to consider. It’s a loan broker with over 75 lenders in its network, giving you access to a lot of financing options. You’ll get all of that with just a single application to Lendio, saving you time and money from having to apply to different lenders on your own.
An added bonus is that if sifting through all those options seems overwhelming, rest assured that you’ll get guidance and assistance from a Lendio team member. Even if you know what you want, Lendio can serve as a second set of eyes to ensure you choose the lender and loan program best suited for your needs. Available loan programs you can use for working capital include a business line of credit, term loan, starting loan, and a business credit card. Plus, with only a 6-month time in business requirement, it’s an excellent option for newer companies, a major factor in helping it make our list of the best short-term business loans.
To apply, you can visit the Lendio website, where an online application can be completed in just 10-15 minutes. There’s no cost to do so, and there also won’t be any impact on your credit score. That’s pretty nice as you can get an idea of what your options would be, without having to ding your credit.
If you just need temporary funding and also plan on paying it off quickly, National Funding is worth a look. It specializes in short-term loans, even offering discounts to incentivize faster payoffs. In other words, going this route with National Funding could allow you to save money in comparison to other lenders. Early payoff discounts can be as much as 7% of the remaining balance for loans paid off within 100 days of the funding date.
But that’s not at all. National Funding also delivers top-notch customer service, evidenced by the fact that it has an A+ rating with the Better Business Bureau and a 4.7-star rating from Trustpilot with over 2,000 reviews as of this writing. Additionally, it has responded to all negative reviews on Trustpilot, a big indicator that the company takes its service levels quite seriously and tries to rectify any negative customer experiences. Lastly, it’s possible to get funds as fast as the same day, which is why this provider made our list of the best same day business loans.
National Funding offers business loans, working capital loans, and short-term loans that can all be used in some way, shape, or form for your business expenses. You can visit the National Funding website to learn more or to apply.
If you choose SBG Funding, you’ll be able to work with a variety of repayment plans. In addition to offering the standard weekly, biweekly, bimonthly, and monthly plans, you can also be offered deferred payments as well as seasonal payments if your revenue throughout the year is cyclical. In this regard, it’s a great option for a payment plan that won’t put pressure on your day-to-day cash flow.
SBG Funding offers both a term loan and a line of credit to fund your working capital needs. While it boasts an 85% overall loan approval rate, a representative I spoke with did mention that meeting the minimum requirements won’t guarantee an approval. Rather, if you do happen to be on the borderline for its eligibility criteria, you should be prepared to document compensating factors to strengthen your application. Common compensating factors include things like a large amount of financial reserves, strong credit, or an upward trend in your financial performance.
Depending on the complexity of your financial situation, it’s possible to get approved and funded in as little as 24 hours. Applications can be completed on the SBG Funding website with no impact to your credit score, and should take no more than 10 to 15 minutes.
Some lenders make the loan application process incredibly frustrating, long, and tedious. That won’t be the case with Advancepoint Capital. You’ll get a phone call within minutes after submitting an online request (if done during normal business hours) to understand your needs and qualifications so that you can be matched with a lending solution most suitable for your circumstances. That’s because Advancepoint Capital has a network of more than 75 lenders it can pair you with, giving you plenty of financing options.
As part of this call, you may also be sent a simple 1-page application form where you can also provide any required credit or financial documents to support your qualifications. The Advancepoint Capital underwriting team will then complete its review, where offers could be made in as little as 1 business hour, depending on the details of your application. If approved and accepted, you can electronically sign a loan agreement and get funds in as little as a day.
Available loan options for your working capital needs include a term loan and a line of credit. Advancepoint Capital also provides ongoing support after the loan has been approved, including things like account management and access to tools for tracking payments.
During my selection of the best working capital loans, I evaluated lenders based on their reputation, loan offerings, rates & terms, funding speeds, and application experience.
Choosing the wrong working capital loan can cost you time, money, and frustration. In addition to following the step-by-step instructions on how to get a business loan to improve your approval odds, here are some other tips to consider when choosing the right working capital loan:
If you can’t find a suitable option for a working capital loan, whether it’s because you’re having trouble getting approved or can’t find the terms you need, you can still consider alternative financing options. Tapping into your own retirement funds with a ROBS, getting funding from friends and family, or getting a personal loan for business purposes are all options that can provide more flexibility in repayment plans, terms, and eligibility.
A working capital loan can be used for a wide range of day-to-day or short-term business expenses. Common examples include payroll, rent, utilities, lawn care, and inventory. Working capital does not include things like investments or long-term obligations and assets.
Many lenders require a credit score of 600 and above, although some may have lower requirements. In general, having a credit score of 680+ will allow you to more easily qualify for loans. If you have a lower credit score, you may need to provide compensating factors to strengthen your application, such as proof of significant financial reserves or strong financial performance from your business.
Yes. While it’s easier to get a loan once you’ve had a history of at least 2 years in business, you can get a working capital loan as a startup. With that being said, you may not qualify for a lender’s best rates, and you also may need to provide more documentation to support your ability to repay the loan.
Andrew Wan is a subject matter expert in Small Business Finance at Fit Small Business. With over a decade of experience in mortgage lending, he was also previously a certified technician for various Apple, Dell, and Microsoft products, and is now lending his expertise to TechRepublic and Technology Advice. Andrew holds a California real estate broker license.
