The best working capital loans will have a combination of low rates, easy documentation requirements, and fast funding speeds. Funds should be able to be used for any business purpose with few restrictions, if any. Since the best financing option will depend on your specific business circumstances, we’ve selected lenders with varying qualification requirements and loan types, such as term loans, credit lines, and invoice financing.
Here are our picks for the nine best small business working capital loans:
- Bluevine: Best overall for established businesses seeking flexible short-term capital
- QuickBridge: Best for an easy application and approval process
- National Funding: Best for customer service and custom financing options
- SBG Funding: Best for same-day and tailored funding options
- Funding Circle: Best for long-term business loans
- Clarify Capital: Best broker for short-term business loans
- Lendio: Best broker for multiple loan types and options
- Creditfy: Best for large business credit lines
- American Express: Best for businesses with low revenue
Best Working Capital Loans At a Glance
Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Loan Repayment Term | Total Estimated Speed from Application to Funding | Required Annual Revenue | Minimum Credit Score | ||
---|---|---|---|---|---|---|---|
$250,000 | 6.2% | 12 months | 1 to 2 days | $480,000 | 625 | ||
$500,000 | Varies | 16 months | 1 to 2 days | $250,000 | 600 | ||
$500,000 | Varies | 16 months | 1 to 2 days | $250,000 | 600 | ||
$5 million | Varies | 5 years | As fast as same-day | $250,000 | 500 | ||
$500,000 | 7.49% to 15.22% | 7 years | 1 to 2 days | $50,000 | 620 | ||
$5 million | 6% | 2 years | 1 to 3 days | $120,000 | 500 to 550 | ||
$5 million | Varies | 30 years | 1 to 2 days | $50,000 to $120,000 | 600 | ||
$2.5 million | 6.50% | 3 years | 1 to 2 days | $100,000 | 600 | ||
Varies | Varies | 24 months | 1 to 4 days | $36,000 | 660 | ||
Bluevine: Best Overall for Established Businesses Seeking Flexible Short-term Capital
Rates & Terms | |
Application Speed | 5 minutes |
Approval Speed | As fast as 5 minutes |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $250,000 |
Starting Interest Rate | 6.2% |
Estimated APR | 6.2% to 78% |
Repayment Term | 26 weeks or 12 months |
Repayment Schedule | Weekly and monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 625 |
Time in Business | 24 months |
Annual Revenue | $480,000 |
Why We Like Bluevine
Bluevine is our leading provider for the best small business working capital loans. It offers a line of credit product with one of the lowest rates on our list, fast approval and funding speeds, and the flexibility to draw funds on an as-needed basis. For these reasons, we also selected it as one of the best small business line of credit providers.
With its small business line of credit, you can get rates as low as 6.2%. However, you could effectively pay less than that if you pay your balance off quicker. This is because rates are calculated as a simple interest rate with the assumption that you make use of the entire credit line and pay only the minimum amount each month. As such, this makes it an even better option for covering short-term expenses.
You’ll need a business bank account to qualify, and Bluevine offers financing in most states—with the exception of Nevada, North Dakota, and South Dakota. It also has a list of ineligible industries, which include businesses involved with gambling, illegal or controlled substances, auto dealerships, and firearms. General partnerships and sole proprietorships are ineligible for financing.
If approved, you can make payments on a weekly or monthly basis, but you’ll need to meet stricter criteria to qualify for the monthly repayment plan. You must be a corporation or limited liability company (LLC), have a credit score of 700, be in business for at least three years, and earn $960,000 in annual revenue.
You can apply online from the Bluevine website and get a decision as quickly as 5 minutes.
QuickBridge: Best for an Easy Application and Approval Process
Rates & Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $500,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | Up to 16 months |
Repayment Schedule | Daily and weekly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months (4 months business bank statements required) |
Annual Revenue | $250,000 |
Why We Like QuickBridge
QuickBridge offers a very similar product to that of National Funding but may provide a slightly easier loan application process with fewer documentation requirements. As a result, you won’t have to provide nearly as much paperwork, which might otherwise normally include tax returns, profit and loss statements, balance sheets, and other financial statements.
With that said, we recommend checking out both providers due to how much their loan products have in common as both wound up on our list of the leading easy business loans. QuickBridge carries the same minimum qualification requirements as National Funding. To be considered for financing, you’ll need at least a 600 credit score and six months’ time in business. You’ll also need annual revenue of $250,000 or more.
Loan terms are also similar as you can get up to $500,000 in funding with factor rates as low as 1.11x if you have excellent credit. To apply, you can visit the QuickBridge website.
National Funding: Best for Customer Service and Custom Financing Options
Rates & Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $5,000 to $500,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | Up to 16 months |
Repayment Schedule | Daily and weekly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months (4 months business bank statements required) |
Annual Revenue | $250,000 |
Why We Like National Funding
National Funding places a large emphasis on delivering a high level of personalized customer service. The majority of its loans are retained in-house, and applications are reviewed on a case-by-case basis to maximize approval odds.
You’ll do best with this provider if your business has strong finances and credit. With that said, it can work with startups and businesses with lower credit scores as its minimum requirements are a 600 credit score and six months’ time in business.
Rates are charged in the form of a factor rate and start as low as 1.11x if you have excellent credit. National Funding generally focuses on short-term loans as its longest repayment term is 16 months. It also grants early payment discounts of up to 7% on the remaining balance if you pay off the loan within 100 days of getting funded.
National Funding does not require collateral to be pledged for a loan, a fact that helped it land a spot as one of our top unsecured business loan providers.
SBG Funding: Best for Same-day and Tailored Funding Options
Rates & Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as same day |
Funding Speed | As fast as same day |
Loan Amount |
|
Starting Interest Rate |
|
Estimated APR | Varies |
Repayment Term |
|
Repayment Schedule |
|
Financing Type | Term loan, line of credit, and invoice financing |
Qualifications | |
Credit Score | 500 |
Time in Business | 6 months |
Annual Revenue | $250,000 |
Why We Like SBG Funding
If you’re looking for customized loan terms tailored to your specific business circumstances and needs, you should strongly consider SBG Funding, which also boasts a high approval rate of 85%. Minimum qualification requirements include six months’ time in business, a credit score of 500, and annual revenue of $250,000.
With that said, meeting the minimum requirements does not guarantee an approval. Businesses that are weak in any area of their loan application will likely require other compensating factors to get funding. For example, businesses with bad credit may need exceptionally strong finances or proof of substantial assets to have a better chance of getting approved. In general, we recommend that businesses have a credit score of 650, annual revenue of $500,000, and two years’ time in business.
Its working capital loans include term loans, a line of credit, and invoice financing. The exact rates and terms you get will vary depending on what loan you apply for and your business qualifications. However, well-qualified businesses can get up to $5 million in funding in as little as 24 to 48 hours, a feature that helped land it a spot on our list of the leading fast business loans.
To apply, you can complete a loan application online. Doing so will not negatively impact your credit score, so it can be a good place to start if you have concerns about how likely you are to get approved.
Funding Circle: Best for Long-term Business Loans
Rates & Terms | |
Application Speed | 6 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $25,000 to $500,000 |
Starting Interest Rate | 7.49% to 15.22% |
Estimated APR | Varies |
Repayment Term | 6 months to 7 years |
Repayment Schedule | Biweekly and monthly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 620 |
Time in Business | 2 years |
Annual Revenue | $50,000 |
Why We Like Funding Circle
If you’re not looking for a Small Business Administration (SBA) loan, Funding Circle can offer one of the longest repayment terms on our list. It has term loans that can be funded within one to two days after applying. SBA loans, by comparison, typically take 45 to 90 days to fund.
Loans are offered in all 50 states, and in addition to the qualification requirements listed above, you must have no bankruptcies in the last seven years and not operate in any of the following industries:
- Speculative real estate
- Nonprofit entities
- Weapons manufacturers
- Gambling
- Marijuana dispensaries
Funding Circle charges a one-time origination fee for its loans that can range from 4.49% to 10.49%. Late payment fees are also assessed at 5% of the missed payment amount. Otherwise, there are no application, prepayment, monthly maintenance, administration, or servicing or account management fees.
Business owners must allow Funding Circle to place a lien on business assets as collateral for the loan. Real estate liens are not accepted. A personal guarantee is also required of any individuals who have an ownership interest of 20% or more in the company. If you’re interested in applying or learning more, check out the Funding Circle website for contact information and a link to an online application.
Clarify Capital: Best Broker for Short-term Business Loans
Rates & Terms | |
Application Speed | 2 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 to 48 hours |
Loan Amount | Up to $5 million |
Starting Interest Rate | 5% and up |
Estimated APR | Varies; typically 6% and up |
Repayment Term | Varies; 6 months to 2 years for non-SBA loans |
Repayment Schedule | Varies |
Financing Type | Term loan, line of credit, equipment financing, SBA loans, invoice factoring, and merchant cash advance (MCA) |
Qualifications | |
Credit Score | Varies; typically 550 (500 for SBA, term loans & MCAs) |
Time in Business | 6 months |
Annual Revenue | $120,000 |
Why We Like Clarify Capital
Clarify Capital is another business loan broker on our list. It also has a large network of over 75 lenders, with a wide range of loan types. Just like the other brokers we’ve mentioned, it will pair you with a loan specialist to best match you with a loan suited for your needs. It can provide a high level of service, demonstrated by its 5-star rating on Trustpilot, and can also issue funding quickly, a feature that landed it a spot in our roundup of the best same-day business loans.
While working with a broker can give you more options and improve your approval odds, one downside is that you may not know the exact qualification requirements or loan terms until after you apply. This is typically because your loan specialist must first conduct an assessment of your business qualifications before determining which of its lending partners can issue an approval for the financing you’re seeking. The benefit, however, is that you can save time and money from having to apply separately to multiple lenders on your own.
To learn more or to submit an application, you can visit the Clarify Capital website. Applications can be completed in under two minutes at no cost and with no impact to your credit score.
Lendio: Best Broker for Multiple Loan Types & Options
Rates & Terms | |
Application Speed | 10 to 15 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $1,000 to $5 million |
Starting Interest Rate | Varies |
Estimated APR | Varies |
Repayment Term | Up to 30 years |
Repayment Schedule | Varies |
Financing Type | Line of credit, SBA loans, term loans, MCAs, and equipment financing |
Qualifications | |
Credit Score | Varies; most programs require 600 |
Time in Business | Varies; typically 3 months to 2 years |
Annual Revenue | Varies; typically ranges from $50,000 to $120,000 |
Why We Like Lendio
Lendio is a business loan broker with over 75 lenders in its network. It also offers a wide range of loan products, including credit lines, SBA loans, and other term loans. With this many options and such a large network of providers, your odds of getting approved and finding a low interest rate loan can be greatly improved.
When you work with Lendio, you’ll be paired with a funding specialist who can provide personalized recommendations based on your business needs and qualifications. You’ll be guided through your options, and the specialist can also serve to confirm the best type of loan to help you meet your business goals.
Other products offered by Lendio include accounts receivable financing, commercial mortgage loans, startup loans, business acquisition loans, and business credit cards. Lendio can also help connect you with other business services, such as credit repair, bookkeeping, and legal assistance.
To learn more or to apply, visit the Lendio website. There are no application fees, and submitting an application will not negatively impact your credit score.
Creditfy: Best for Large Business Credit Lines
Rates & Terms | |
Application Speed | 5 to 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $2.5 million |
Starting Interest Rate | 6.49% |
Estimated APR | 6.50% and up |
Repayment Term | 6 months to 3 years |
Repayment Schedule | Monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Revenue | $100,000 |
Why We Like Creditfy
With Creditfy, you can get a line of credit for up to $2.5 million, the highest loan amount for a credit line on our list. In addition, it has competitive rates, easy qualification requirements, and fast funding speeds.
Creditfy’s rates start as low as 6.49%. It also advertises easy qualification requirements. You need a credit score of 600, annual revenue of $100,000, and six months’ time in business. It backs up these criteria with a loan approval rate of 90% and has partnerships with lenders that other brokers may not yet have.
As with many companies, working with Creditfy means one of its loan specialists will work with you to find the lender best suited for your needs. You’ll be sure to work with an experienced individual, as Creditfy requires all of its representatives to have a minimum of two years of industry experience.
If a line of credit is not the right fit, you can also check out Creditfy’s other loan products, including equipment financing, invoice financing, and SBA loans. To apply, you can visit the Creditfy website.
American Express: Best for Businesses With Low Revenue
Rates & Terms | |
Application Speed | 5 to 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | 1 to 3 days |
Loan Amount | Varies |
Starting Interest Rate |
|
Estimated APR | Varies |
Repayment Term | 6, 12, 18, or 24 months |
Repayment Schedule | Monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 660 |
Time in Business | 12 months |
Annual Revenue | $36,000 |
Why We Like American Express
If you are a newer company or are unable to meet the higher revenue requirements of other providers, American Express can be a good option as it has the lowest low revenue requirement in our guide at just $36,000 annually. It’s also a good option for startups with its 12-month time in business requirement.
The American Express small business line of credit, formerly marketed under Kabbage Funding, charges a monthly fee rather than a traditional interest rate. Monthly fees vary based on the length of the loan repayment period and the strength of your business qualifications. Loan terms can be selected for 6, 12, 18, or 24 months, with lower fees being charged for its shorter term loans.
Other fees that may be incurred include late fees which can range from $10 to $100 depending on the outstanding balance listed on the monthly statement. Balances between $35 and $500 will incur a late fee of $10, while the maximum late fee of $100 will apply if your loan balance exceeds $5,000. American Express credit lines do not carry any prepayment penalties.
The provider states that the minimum credit score to be considered for financing is 660, although it could be higher depending on your overall relationship with the lender, your credit history, and other factors. You can complete an online application in just a matter of minutes. If approved, funding from any draw you take on the line of credit can be deposited into your bank account within one to three business days.
How We Chose the Best Working Capital Loans
The best working capital loans were selected based on the following criteria:
- Types of loans offered
- Interest rates, fees, and estimated APRs
- Loan terms
- Repayment terms available
- Qualification requirements
- Application, approval, and funding speeds
- Customer reviews and ratings
Types of Working Capital Loans
You may see lenders advertising different types of loans as a working capital loan. To help you identify the best type of loan best suited for your needs, here is a summary of common loan products you may see:
- Term loan: This provides a single lump sum of funds and generally has a repayment period between six months and 10 years. It is a good option if you do not have a recurring need for funds.
- Small business line of credit: This is a revolving credit line that allows you to draw funds on an as-needed basis up to your credit limit. This flexibility makes it useful for covering recurring expenses or emergencies. See our guide on how a small business line of credit works for more details.
- Invoice financing: If you’ve issued invoices to customers but are still awaiting payment, you can get an advance on those funds with invoice financing. See our illustration on how invoice factoring works.
- MCA: This is an expensive form of financing that allows you to get a cash advance in exchange for a percentage of your credit card sales. This should generally be regarded as a last resort given its costs. See our perspectives on whether an MCA is right for your business.
- Revenue-based financing: This allows for your monthly payments to go up or down depending on your company’s revenue. It can be a good option for your business if you’re concerned about cash flow issues and have predictable sources of revenue. Head to our article describing how revenue-based financing works.
Alternatives to Working Capital Loans
Although working capital loans can be used to cover a wide range of business expenses, you still need to meet the qualification requirements of a lender to get approved. Here are some alternatives to consider if you’re having trouble getting a working capital loan:
- Startup business loans: These types of loans can be easier to get if you have been in business for less than two years or have lower revenue. Some startup loans require collateral to be pledged as security for the loan, while others allow for penalty-free access to retirement funds. Check out our list of different types of startup loans.
- Personal loan for business purposes: If your business finances or credit are presenting challenges when it comes to getting approved for a business loan, a personal loan may be an option. You’ll be personally liable for making the payments if your business fails, so you’ll need to consider that as a possible risk. Head to our recommendations for the best personal loans for business funding.
- Loans from friends and family: If you’re still having trouble getting financing, loans from friends and family can be one way to get around the traditional requirements of a bank. This option can also be less expensive than traditional methods of financing. If you’re unsure how to pursue this option, see our guide on how to ask friends and family to fund your business.
Our article on how to get a small business loan contains tips on various stages of the loan process.
Frequently Asked Questions (FAQs)
You can get a working capital loan within 24 to 48 hours. However, this will depend on the lender and type of loan so it’s possible that it could take up to two weeks or more. If you need to get a loan quickly, you can review our list of the best fast business loans.
You can get a working capital loan with credit scores as low as 500, and you can use our guide on the best business loans for bad credit. Depending on the type of loan you’re getting, a credit score may not even be required. For example, invoice financing does not typically have a credit score requirement as repayment of the loan is more dependent on the credit of the companies that owe you the outstanding invoice amounts.
You can get a working capital loan from credit unions, banks, online lenders, or loan brokers. Since working capital loans are used to cover many types of daily operational expenses, they can include term loans, lines of credit, invoice financing, and purchase order (PO) financing.
Bottom Line
Funds you receive from a working capital loan can be used for a variety of business expenses. Common examples include rent, payroll, and other operating costs. Many types of loans can be used for working capital, and the list we’ve compiled includes an assortment of providers that offer term loans, lines of credit, invoice financing, and more.