Working capital is the money your business uses to run day to day: payroll, rent, inventory, fuel, materials, marketing and the gap between paying suppliers and getting paid by customers. A working capital loan is short- to medium-term financing that fills that gap when revenue is healthy but timing isn't.
Most owners don't come to us because the business is failing. They come to us because a big order landed, a truck broke down, a landlord wanted a deposit, or receivables slipped 45 days. Working capital solves timing problems — and when it's structured correctly, it pays for itself.
How a working capital loan works
You apply with a short form and your recent business bank statements. FinFunders reviews the file directly, including revenue, deposit consistency and existing obligations. Qualified applicants may receive an offer within hours showing the amount, payment, term and total payback.
Funding amounts are usually sized to your monthly deposits — commonly 50% to 150% of a single month of revenue. Terms run from three to twenty-four months, and payments are drawn automatically daily, weekly or monthly depending on the structure you choose.
- Apply in about five minutes with a soft credit pull only.
- Send three months of business bank statements.
- Compare two or three offers side by side with your advisor.
- Sign electronically and receive funds, often the same business day.
What working capital costs
Short-term working capital is usually quoted as a factor rate, not an interest rate. A $100,000 advance at a 1.25 factor means you repay $125,000 in total. Longer amortizing loans are quoted as an annual interest rate instead. Because a factor rate is fixed and doesn't decline as you pay down the balance, the equivalent APR on a short-term product is always higher than the factor makes it look.
Typical short-term pricing runs from roughly 1.12 to 1.49 depending on your time in business, revenue consistency, industry and credit profile. Longer bank-style term loans for stronger files can price in the single digits annually. Your advisor will show you both the factor rate and the effective annualized cost so you're comparing on the same basis.
Beyond the rate, ask about the origination fee (commonly 1% to 5%), whether there is a discount for early payoff, and whether the payment is fixed or flexes with your sales. Those three details change the real cost more than a small difference in the headline number.
Who working capital fits
- Businesses with consistent monthly deposits that need to bridge a 30-90 day timing gap.
- Owners funding a specific, revenue-producing use: inventory for a known order, a new crew, a marketing push, a repair that restores capacity.
- Companies that were declined by a bank on time-in-business or credit but have solid cash flow.
- Seasonal operators building inventory ahead of their peak.
Who it doesn't fit
Working capital is not a fix for a structural problem. If margins are negative, if the business already carries several advances, or if the payment can't be covered comfortably in a below-average month, more capital makes the situation worse rather than better.
We will tell you that directly. If we don't have an offer that makes sense for your business, we say so instead of pushing a weak one — and we'll usually give you a short list of what to change so a better offer is available in three to six months.
What you need to qualify
- Six or more months in business.
- At least $15,000 in monthly revenue.
- A 525+ personal FICO score.
- An active business checking account.
Why owners choose FinFunders
FinFunders is a direct business funder. Our team evaluates your application and explains the approved amount, payment schedule, term and total cost before you sign, without sending you through a broker marketplace.
You also get one advisor who stays with your business — through this funding, a renewal and your next capital need.
Frequently asked questions
- How fast can I get working capital?
- Most approved files are funded within 24 hours of signing, and same-day funding is common for requests under $150,000. Larger requests may take one to three business days for additional review.
- Will applying affect my credit score?
- No. Prequalification uses a soft credit pull, which does not affect your score. A hard inquiry only occurs if you accept an offer and the funder requires one at closing.
- How much working capital can my business get?
- Offers are typically sized between 50% and 150% of one month of business deposits, with a range of $10,000 to $5,000,000. Time in business, deposit consistency and existing debt all affect the number.
- Can I get working capital with bad credit?
- Yes, in many cases. Credit is one factor, not the only one. We regularly place files with FICO scores in the 525-600 range when revenue is consistent and the business bank account is healthy.
Related guides
Working Capital Loans: A Practical Guide for Small Businesses
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StrategyCash Flow Management: 12 Habits That Keep Businesses Funded
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CreditBusiness Funding With Bad Credit: What Is Actually Available
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