Finimpact

Best Working Capital Loans

Working capital loans help you access the cash you need in order to operate your business. These loans can help cover payroll, pay for large purchases, or help keep your cash flow stable. Best of all, you may not need to put up collateral.

Best Secured Business Loans
Brian T. O'Connor
Copywriter & Content Marketer for Financial Services and Small Businesses

You may want a working capital loan if you need to borrow quickly and can’t wait on a traditional bank loan. The best working capital loans offer a quick approval timeline, which puts cash in your hand quickly if you have unexpected shortfalls or have to make an emergency purchase.

If you’re looking for the best working capital loans that can help you tap into the funding you need right away, look no further. Our team of financial experts reviewed and ranked the top online lenders to help you get funded.

Our Top Picks for Best Working Capital Loans

Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
repayment
Loan Repayment 6-12 months
bluevine
  • Quick and simple application
  • Competitive interest rates
  • Available to customers with relatively low credit scores
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 months
credibly
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months

How to Choose the Best Working Capital Loans

There are a variety of working capital loans available to you depending on your credit score, credit history, and the kind of business you operate. These loans may vary as far as terms, repayment period, and totals are concerned. Working capital loans can take the form of short-term business loans or a business line of credit, depending on your needs.

Here are some of the leading factors, chosen by our experts to rank the top business working capital loans available.

  • Loan Features: This includes loan terms, repayment options, and loan amounts. Most are short-term business loans, meaning they require repayment over 12 months. You may also be able to get a business line of credit, which offers you a sum of money to borrow against during a set period.
  • Application process: How much information lenders require in your application. This also includes whether or not the lender needs to run a hard-pull or soft-pull of your credit score, and how long it will take to receive your funds.
  • Interest rates and fees: Interest rates vary between lenders, as do fees associated with taking out a loan.
  • Qualification process: The credentials lenders require from applicants, including minimum credit score, annual revenue, and business history.
  • Customer support: Whether or not a lender offers access to live support representatives as well as the availability of support across different channels. This also includes the amount and usefulness of supplemental information and tools.
  • Online user reviews: What others have to say about their borrowing experience with a lender based on feedback from independent review sites.
  • Perks and Bonuses: Other benefits associated with borrowing from a certain lender, such as payment flexibility, advertising transparency, and advanced technology.

  • Best Working Capital Loans - Full Overview

    There are several leading lenders for business working capital loans. Each of the following lenders offer different benefits for borrowers, as well as different applicant requirements.

    1. Fundbox - Best for Credit-Conscious Borrowers

    Fundbox offers two loans that can help provide you with working capital. Their secured business loan application only requires a soft credit pull, which does not impact your credit score. Plus, Fundbox is also more flexible with credit scores than traditional lenders. Part of this flexibility is due to how the company deposits your loan proceeds and how it collects on your debts. They push money directly into your checking account and withdraw from your account automatically for repayment. This underlying tech streamlines the payment process, which is part of why Fundbox is more lenient with lower credit scores.

    Pros
    Fast application process and payment
    Soft credit pull doesn’t lower credit score
    Two flexible repayment period options
    No additional loan fees beyond interest
    Cons
    High interest rates
    Small credit limit (typically $150,000)
    Auto-debit loan repayments


    Fundbox provides two loan terms: 52-week or 24-week schedule. The lender also offers up to $150,000 to borrowers, which is lower than other firms that may provide a credit limit of up to $500,000. Interest rates begin at 4.66%, but your rate could be higher depending on your credit score, among other factors. Businesses only need to have been in business for six months before applying for a loan.

    Features

    Loan Terms

    52 or 24 week schedule

    Loan Amounts

    Up to $150,000

    Interest Rates

    4.66% minimum rate

    Minimum Credit Score

    500

    Minimal Annual Revenue

    $180,000

    Time in Business Requirements

    6 months


    The Bottom Line

    Fundbox makes it easy to get a loan—even if your credit is a sensitive subject. Plus, Fundbox gets cash in your hand quickly.This is helpful if getting working capital is a time-sensitive matter, which is true in many cases.

    Try Fundbox

    2. BlueVine - Best for Customer Service

    Bluevine offers a business line of credit that can help you get the working capital you need. This option is ideal for borrowers who may want to dip into capital repeatedly without having to apply for a loan each time, which is where a line of credit excels. Bluevine also deposits and withdraws funds directly from a linked checking account, which can provide speed and convenience. Bluevine runs a soft credit pull when you apply, which can help avoid negative changes to your credit. Bluevine stands out in terms of customer service. The lender offers person-to-person customer support in addition to its online platform, which can go a long way when you have an issue getting paid or with repaying your loan.

    Pros
    Quick and easy application
    Funds available in hours or days
    Accessible customer service
    Also offers a competitive checking account
    Cons
    High late fees
    High repayments due to 6-12 month terms
    High interest rates for lower credit scores


    Bluevine’s term loans come with a simple online application process. You only need to provide your business name, address, tax ID, and other general information. No business plan is required. You have to connect your bank account to your loan, which helps you get paid in 24 to 48 hours. Bluevine will also auto-debit this account when you owe payments, so be sure you’re comfortable with that before you proceed.

    Features

    Loan Terms

    6 to 12 week schedule

    Loan Amounts

    $5,000 to $250,000

    Interest Rates

    4.8% minimum rate

    Minimum Credit Score

    600

    Minimal Annual Revenue

    $120,000

    Time in Business Requirements

    6 months


    The Bottom Line

    Bluevine is an alluring option for businesses that can afford the faster repayment period, and for those who want a line of credit versus a term loan. Their customer service and loan totals can help you get the funds you need with minimal hassle.

    Try BlueVine

    3. Credibly - Best for High Borrowing Limits

    Credibly is one of the more established online lenders and is also more flexible with qualifications than other, newer lenders. You also have multiple loan types to choose from with Credibly, which can help you pick out the right kind of loan for your working capital needs. If you operate in a high-risk industry, such as lawyers and real estate firms, Credibly could be a good pick. They’re one of the few lenders willing to work with these industries. There may be downsides, however, like high interest rates and origination fees.

    Pros
    Simple application
    Flexible credit requirements (500 or higher)
    Multiple loan types
    High borrowing limits (up to $400,000)
    Cons
    High interest rates
    Origination fees for most loans
    Daily and weekly repayment likely required


    Credibly offers working capital loans that come with a lump-sum charge that’s a total percentage of the loan, rather than an interest rate. This is known as a factor rate, and is determined by the payback amount divided by the funding amount. Max loan sizes can be as high as $400,000 and terms last from 6-18 months.

    Features

    Loan Terms

    6 to 18 month schedule

    Loan Amounts

    Up to $250,000

    Interest Rates

    Factor rates starting at 1.15

    Minimum Credit Score

    600

    Minimal Annual Revenue

    $120,000

    Time in Business Requirements

    6 months

    The Bottom Line

    Credibly offers flexible criteria for borrowers but also costs more in terms of interest and origination fees. This can help you get access to working capital even if your credit is less than stellar—even if it means potentially paying more.

    Try Credibly

    4. Fora Financial - Best for Short-Term Lending

    Fora Financial is best suited for borrowers who need access to cash and can afford to repay their loan quickly, with interest and fees. These loans come with 15-month terms and no need for collateral. Not having to put up collateral can be a helpful benefit if you don’t have adequate collateral to secure a working capital loan. Fora may not be the best fit for you if you’re looking for a loan with a longer term, given their quick repayment requirements and interest rates. You could, however, end up saving money with early repayment discounts.

    Pros
    Fast funding in as little as 24 hours
    Broad range of credit for qualification
    Covers broad variety of industries
    High borrowing limits (up to $500,000)
    Cons
    Interest rates tend to be high
    Comes with added fees


    Fora Financial loans are quick to apply for, and funds typically hit your account within 72 hours. You can get a free online quote and an application review directly thereafter. If you’re approved, you’ll get a short-term loan with 15 month terms and no collateral requirements. You can borrow up to $500,000 with a minimum credit score of 500. Paying early is penalty-free and can help you save in the long run.

    Features

    Loan Terms

    15 months

    Loan Amounts

    Up to $500,000

    Interest Rates

    Factor rates ranging from 1.1 to 1.3

    Minimum Credit Score

    500

    Minimal Annual Revenue

    $12,000

    Time in Business Requirements

    6 months

    The Bottom Line

    Fora Financial makes it easy for borrowers to access working capital loans quickly. They’re praised for their customer service, turnaround time on loans, and a straightforward lending process.

    5.Torro - Best for New Businesses

    Torro provides two different kinds of loans: one for new businesses, and ones for longer track records. This helps new businesses borrow the funds they need in the early stages of their company’s life, often when money is needed the most. Torro’s working capital loans are designed for companies with at least six months of activity. Their start-up capital loans are similar to a business line of credit and are limited to businesses with less than six months of activity, and a maximum revenue of $5,000 per month.

    Pros
    Helpful for companies less than six months old
    Designed to provide start-up working capital
    Easy qualification
    High maximum loan amount ($575,000)
    Cons
    Interest rates can be high
    Limited online customer chat
    Higher credit score requirement than other lenders


    Torro makes the lending process simple for new and existing businesses. Companies with half a year of operating history can apply for working capital loans with a 12 to 48-month term period, a variable repayment period, and a high maximum loan amount. A credit score of 680 will usually get your application approved, but a low credit score may come with higher interest.

    Features

    Loan Terms

    12-48 months

    Loan Amounts

    Up to $575,000

    Interest Rates

    APR of up to 36%

    Minimum Credit Score

    680

    Minimal Annual Revenue

    $120,000

    Time in Business Requirements

    6 months

    The Bottom Line

    Torro simplifies the borrowing process for small businesses and is willing to accept less than stellar credit. Torro is a good option for working capital loans for new businesses, which often get shut out from borrowing.

    Try Torro

    6. Biz2Credit - Best for Fast Approval

    Biz2Credit is known for offering a fast turnaround time between application to funding. In most cases, Biz2Credit can get funds deposited in 72 hours after submitting your loan request. This makes the lender an ideal source of funding if your business needs fast access to capital, which is often the case for working capital. Biz2Credit’ working capital loans also come with significantly higher maximum loan amounts—up to $6 million depending on the application and applicant. Interest rates are competitive, but qualifying for a loan can be harder here than with other lenders.

    Pros
    Funds hit your account in three business days
    High maximum loan totals provide flexibility
    Decent interest rates
    Cons
    Application requirements can be hard to meet
    Loans may come with additional fees
    Higher minimum annual revenue required


    Biz2Credit’s working capital loans are its most flexible in terms of minimum credit score. You only need $250,000 in annual revenue and six months of operating time to qualify. Still, you’ll need decent credit in order to meet the company’s threshold, and may still get rejected for other reasons, such as your personal and professional financial track record.

    Features

    Loan Terms

    Varies by the applicant

    Loan Amounts

    From $25,000 to $2 million

    Interest Rates

    Variable APR depending on the applicant

    Minimum Credit Score

    575

    Minimal Annual Revenue

    $250,000

    Time in Business Requirements

    6 months


    The Bottom Line

    Biz2Credit offers by far the highest maximum loan amount out of those we’ve evaluated. With this comes a more stringent application process. In spite of that you may still receive your funds more quickly than with other lenders.

    Try Biz2Credit

    Best Working Capital Loans - Features Comparisons

    Fill in the table with the required features, address features related to working capital loans only

    Company

    Min. Credit Score

    Min. Time in Business

    Min. Annual Revenue

    Loan Amount

    Interest Rate

    Fundbox

    500

    6 months

    $180,000

    Up to $150,000

    4.66% minimum rate

    BlueVine

    600

    6 months

    $120,000

    $5,000-$250,000

    4.8% minimum rate

    Credibly

    600

    6 months

    $120,000

    Up to $250,000

    Factor rates starting at 1.15

    Fora Financial

    500

    6 months

    $12,000

    Up to $500,000

    Factor rates range from 1.1 to 1.3

    Torro

    680

    6 months

    $120,000

    Up to $575,000

    APR up to 36%

    Biz2Credit

    575

    6 months

    $250,000

    $25,000-$2,000,000

    Variable, depends on applicant

    Best Working Capital Loans - Features Comparisons

    Fill in the table with the required features, address features related to working capital loans only

    What is a Working Capital Loan?

    A working capital loan provides you with the funds you need in order to pay for a variety of business requirements. Unlike other term loans and equipment financing that require you to use funds for a specific purpose, working capital loans are more flexible and can be used for a broader array of purposes.

    When You Should Consider a Working Capital Loan

    Working capital loans are a good option whenever you need to tap into funds to keep your regular business operations running, to buy equipment or material, or to cover other costs like payroll if money is tight. Qualifications for working capital loans are usually less stringent than other term loans, which makes them an attractive option for business owners with less than excellent credit, or for whom a traditional bank loan isn’t likely. A working capital loan can also be a better fit if time is of the essence and waiting for a term loan from a bank isn’t feasible. Working capital loans can come with higher interest rates and fees, however, so they might not be right for everyone.

    How to Get a Working Capital Loan

    You can get a working capital loan from a variety of sources. Online lenders tend to provide application review and funding more quickly than conventional banks. These lenders also offer different features and technology to make it easier to apply for and manage your loans. You can request a quote quickly through online providers and get approval within hours in many cases.

    The Small Business Administration (SBA) also offers working capital loans through its partner banks. SBA working capital loans can be a great option because they tend to come with lower interest rates than traditional term loans. The SBA does tend to favor applicants with a long track record, good credit history, and other attributes that speak to the success of the company.

    The SBA usually requires more information than online lenders, so you may need to factor in a longer lead time if you opt to go with SBA financing.

    Types of Working Capital Loans

    There are two types of working capital loans: short-term loans and business lines of credit.

  • Short-term working capital loans: provide small businesses with a lump sum of money with a set repayment schedule.
  • Business line of credit: provides you with a set amount of money that you can pull from repeatedly during the life of the loan. This means you can withdraw money from your line of credit repeatedly so long as you don’t exceed the total amount of money the lender spells out in your contract.
  • What is the Difference Between a Working Capital and Term Loan?

    Working capital and term loans aren’t always the same, although a working capital loan can often take the form of a term loan. Working capital loans do not come with rules around how you spend the money and what you spend it on. With other term loans, your lender may require you to demonstrate what you’re spending the money on and restrict you from using the funds for other purposes. A working capital loan can be used for a variety of purposes, however.

    Conclusion

    Working capital loans can be a great option for small business owners who need quick access to capital with a fast approval process. There are a variety of lenders who can help you get the cash you need while working with your credit score and business history. Some may charge you higher interest rates based on your creditworthiness, while others may include loan fees that others don’t. The best thing you can do is understand what each lender is looking for in their ideal candidate, how much they charge in fees, and how quickly you need to repay your debt.

    About the Author

    Brian T. O'Connor

    Copywriter & Content Marketer for Financial Services and Small Businesses

    Brian is a small business writer, focusing on the best ways for entrepreneurs to get their business off the ground. Brian is the co-owner of Brunch Money, a digital strategy agency based in Connecticut.

    More about me