Working Capital Loans for Small Business

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A working capital loan is short-term financing used to cover day-to-day operating costs — payroll, inventory, rent, seasonal gaps — rather than long-term investments. Typical amounts run from $10,000 to $500,000, funding can arrive in 1–3 business days, and qualification leans more on monthly revenue than on collateral.

At a glance

Typical amounts$10,000 – $500,000
Funding speed1–3 business days
Best forCovering payroll, inventory purchases, seasonal cash-flow gaps, and short-term opportunities.

Requirements

  • 6+ months in business (12+ preferred)
  • Roughly $10,000+ in monthly revenue
  • Business bank account with steady deposits
  • Credit score typically 550+ (varies by lender)

How it works

  1. Apply with basic business details and recent bank statements.
  2. The lender evaluates monthly revenue and cash-flow consistency.
  3. Offers state amount, term (usually 3–24 months) and total payback.
  4. Funds are deposited, repaid via fixed daily, weekly, or monthly payments.

Pros and cons

ProsCons
  • Fast approval and funding
  • Revenue-based qualification — collateral usually not required
  • Flexible use of funds
  • Higher cost than bank loans or SBA loans
  • Short repayment terms mean higher periodic payments
  • Frequent (daily/weekly) payments can strain thin margins

See if you qualify for working capital loans

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Frequently Asked Questions

How fast can I get a working capital loan?

Most online lenders approve within 24 hours and fund within 1–3 business days once documents are verified.

Do working capital loans require collateral?

Usually not. Most are unsecured and underwritten on revenue, though many lenders require a personal guarantee and some file a UCC lien.

What credit score do I need?

Many lenders work with scores as low as 550 because revenue matters more; stronger scores unlock lower rates and longer terms.

Related options

  • Merchant Cash Advance — Businesses with strong card sales that need money fast and have been declined for cheaper products.
  • Equipment Financing — Trucks, construction machinery, restaurant/medical equipment, manufacturing lines, IT hardware.
  • SBA Loans — Established, profitable businesses that can wait for funding and want the lowest payment.