What it is
Working capital products are shorter-term funds for operations — not buying a specific machine. Think term loans, revenue-based advances, or draws on a line when you have one.
Who it fits
- A restaurant bridging payroll between catering deposits.
- A retailer stocking inventory ahead of a holiday push.
- A services firm covering payroll between project milestones.
What many lenders look for
- Many lenders look for about a year in business and roughly $8–10K+ average monthly revenue.
- Many cite credit around 600–625+ for unsecured term options.
- Clear use of funds and ability to handle payments from ongoing revenue.
Pros
- Fixed purpose — keep the lights on and crews paid.
- Can be faster than SBA when timing matters.
Cons
- Unsecured options cost more than equipment-backed paper.
- Daily or weekly payments on some products strain cash.
Questions to ask any provider
- What is the total payback, not just the rate?
- Are payments daily, weekly, or monthly?
Compare other options
FAQ
- Working capital vs. line of credit?
- A line is reusable; a term loan is one-time with fixed payments. Lines reward planning ahead.