Working Capital Loans for Small Businesses
Last updated: July 2026 · By the LoanSource Pro editorial team
A working capital loan is short-term financing that covers a business's everyday operating costs — payroll, rent, inventory, and cash-flow gaps — rather than long-term investments. It fits businesses that are fundamentally healthy but need cash sooner than their sales cycle delivers it, and it funds in days rather than the weeks a bank takes.
See if you qualify — get connected with a funding specialistNo obligation · No hard credit pull · Independent referral service, not a lender
When to use working capital financing
Working capital financing makes sense when the money solves a timing problem or funds a return, not when it plugs a structural loss. Common uses:
- Seasonal gaps — retailers and restaurants covering slow months before a strong season.
- Payroll — keeping staff paid while waiting on receivables.
- Inventory buys — taking a bulk discount or stocking ahead of demand.
- Delayed receivables — bridging net-30/60/90 invoices from slow-paying customers.
- Opportunities — a contract, location, or piece of equipment that can't wait for a bank.
How much can you get — and how fast?
| Product | Typical amount | Term | Speed | Repayment |
|---|---|---|---|---|
| Business line of credit | $25K–$250K | 6 months–2 years | Next-day funding available | Draw as needed; balance replenishes |
| Revenue-based / MCA | Up to $5M | 4–24 months | As fast as 1 day | Percentage of daily sales |
| Invoice financing | Advance on invoice value | Until invoice pays | Days | Settled when customer pays |
| Short-term loan | Up to $250K | 6–24 months | 1–3 days | Fixed weekly/bi-weekly/monthly |
Amounts, terms, and speeds shown are published by our funding partner, REIL Capital, and depend on qualifications.
Not sure which fits? A specialist will compare options side by side →
How this differs from a traditional bank loan
A bank term loan is cheaper but slower and harder to get: expect weeks of underwriting, collateral requirements, and heavy documentation. Alternative working capital funding flips that trade — decisions within 24 hours based mainly on revenue and cash flow, no hard credit pull to see options, and three months of bank statements instead of a full financial package. If you can wait weeks and qualify at a bank (or want an SBA loan), that route costs less; our sister site LoanPro Advisor covers it.
Costs and terms in plain English
Working capital financing is priced either as interest, a fee, or a factor rate — a multiplier applied to the amount advanced (for example, 1.2 means you repay $1.20 per $1.00 advanced). Shorter terms and faster funding generally mean higher cost than a bank loan. Honest rule of thumb: this financing is worth it when the funded activity returns more than the financing costs — an inventory discount, a staffed job, a kept contract — and not worth it to cover recurring losses.
What you'll need
- About 6+ months in business
- Roughly $250K+ annual revenue (or ~$15K+ monthly)
- 3 months of business bank statements
- A business bank account
- 500+ FICO — multiple qualification paths exist
Full details on the qualification page.
Working capital FAQ
What are typical working capital loan terms?
Working capital products through our partner REIL Capital typically run 4 to 24 months. Lines of credit range from $25K to $250K with terms of 6 months to 2 years; revenue-based financing reaches up to $5 million with terms of 4 to 24 months; short-term loans reach $250K over 6 to 24 months.
What's the minimum revenue for a working capital loan?
Our funding partner REIL Capital generally looks for about $250K in annual revenue or roughly $15K in monthly business revenue, along with at least 6 months in business. Multiple qualification paths exist, so falling short on one measure does not automatically disqualify you.
How fast can I get a working capital loan?
Decisions come within 24 hours and funding often arrives in 24–48 hours through REIL Capital. You'll need a short application and three months of business bank statements.
Is a working capital loan hard to get with bad credit?
It's easier than a bank loan. Alternative funders weigh revenue and cash flow more heavily than credit scores; REIL Capital's qualification paths start around a 500+ FICO, and checking your options involves no hard credit pull.
What documents do I need?
Three months of business bank statements plus a short application covering your business basics. That's typically all it takes to receive initial offers.
Compare your working capital options
2-minute application · Decisions within 24 hours · Funding in as little as 24–48 hours
See if you qualifyIndependent referral service, not a lender