Working Capital Loans: Fast Cash for Business Operations
Working capital loans provide short-term financing to cover daily operations—payroll, inventory, rent, and unexpected expenses. Here's how to qualify.
Sarah Johnson, MBA
Small Business Finance Expert
Updated February 2, 2026 • 8 min read
Working Capital Loan Snapshot
24-48 hrs
Funding Speed
$5K-$500K
Typical Amounts
3-24 months
Repayment Terms
10-50%
APR Range
Common Uses for Working Capital
Cover payroll during slow seasons
Purchase inventory for busy periods
Bridge gaps between invoices
Pay vendors and suppliers
Handle unexpected repairs
Fund marketing campaigns
Manage cash flow fluctuations
Cover rent and utilities
Working Capital Loan Requirements
- Time in Business: 6+ months minimum
Some lenders require 1 year
- Monthly Revenue: $10,000+ minimum
Higher revenue = better terms
- Credit Score: 550+ for alternative lenders
600+ for better rates
- Bank Statements: 3-6 months required
Shows cash flow patterns
Types of Working Capital Financing
Short-Term Loans
Lump sum with fixed payments over 3-24 months. Best for one-time needs.
Business Line of Credit
Draw funds as needed, only pay interest on what you use. Best for ongoing needs.
Invoice Factoring
Sell unpaid invoices for immediate cash. Best for B2B businesses.
Merchant Cash Advance
Advance on future sales, repaid daily. Fast but expensive.