Ultimately, deciding whether a working capital loan makes sense for your business is a matter of personal choice. However, if you need short-term funding to cover unexpected expenses or to help your operations expand, this type of loan may be a smart option.
Best Working Capital Loans in September 2025
A working capital loan can help finance short-term or ongoing business expenses.
Updated on:
August 29, 2025
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iBusiness Funding: Best overall working capital loan
$25,000 to $500,000
7.49%
6 to 60 months
Pros
- Relatively quick funding times
- Long repayment terms (up to 60 months)
- No application fees or prepayment penalties
Cons
- May charge an origination fee
- Collateral, personal guarantee and/or blanket lien may be required
- Must be in business for at least two years to qualify
Why we picked it
iBusiness Funding is our top pick for the best overall working capital loan because it offers a wide range of loan amounts with some of the lowest starting rates on this list. With lengthy repayment terms and no prepayment penalties, borrowers can repay their loan at a pace that is comfortable for them.
And though it’s not the fastest lender on this list, typically taking two to four days to fund non-SBA term loans, iBusiness Funding strikes a balance between speed and affordability — meaning you can get funds relatively quickly without paying extra for the perk.
With iBusiness Funding, you can borrow up to $500,000 for working capital. With that time and money, you could tackle a number of projects for your business. However, you may need to provide collateral or sign a personal guarantee to secure your loan.
Read our full iBusiness Funding review.
How to qualify
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 2 years
- Minimum annual revenue: $50,000
OnDeck: Best for fast funding
$5,000 to $250,000
31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
Pros
- No hard credit check to apply
- Receive funds as soon as the same day
- Potential to avoid prepayment penalties
Cons
- High interest rates
- May charge an origination fee
- Not available in North Dakota
Why we picked it
If you’re looking for a fast business loan, OnDeck can deliver funds up to $250,000 as soon as the same day you apply. You can check your eligibility without a hard credit check, and the streamlined application only takes a few minutes to complete. If you don’t qualify for same-day funding, you can still expect your funds to be delivered within two to three business days.
OnDeck has fairly low credit score and time in business requirements, but be prepared for high interest rates and additional fees.
Read our full OnDeck review.
How to qualify
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 1 year
- Minimum annual revenue: $100,000
Live Oak Bank: Best for SBA loans
Up to $5,000,000
10.50% to 14.00%
14% for loans $50,000 or less
13.5% for loans $50,001 to $250,000
12% for loans $250,001 to $350,000
10.5% for loans above $350,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50% to 15.50%
15.5% for loans $25,000 or less
14.5% for loans $25,001 to $50,000
13.5% for loans $50,001 to $250,000
12.5% for loans above $250,000
Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Up to 300 months
Pros
- Large loan amounts
- Long repayment terms
- Interest rates are capped by the SBA
Cons
- SBA loan applications can be lengthy and time-consuming
- Even with a preferred lender, SBA loans are typically slower to fund
- May come with extra fees
Why we picked it
If you’re looking to borrow a large amount at a relatively affordable price, working with an SBA Preferred Lender like Live Oak Bank might be one of your best options. With an SBA 7(a) loan, you can borrow up to $5,000,000 in working capital and pay it back with fixed payments over a lengthy term. Interest rates are capped by the U.S. Small Business Administration, though your exact rate will depend on your qualifications.
SBA loans are often more accessible for business owners who can’t qualify for traditional business financing. However, even with a preferred lender, SBA loans may take a few weeks to fund, so this isn’t the best choice for businesses seeking fast funds.
Read our full Live Oak Bank review.
How to qualify
Live Oak Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Contact the lender directly to find out if your business qualifies for a loan.
Fora Financial: Best for bad credit borrowers
$5,000 to $1,500,000
13.00% Fora Financial's minimum rate is a 1.13 factor rate. This means you'd repay 13.00%, plus any additional fees, on top of the amount borrowed.
4 to 18 months
Pros
- Low minimum credit score
- Opportunity to borrow more after paying off 60% of the original loan
- Offers early payoff discounts
Cons
- Charges an origination fee
- High annual revenue requirement ($240,000)
- Doesn’t build business credit
Why we picked it
Fora Financial is our top pick for borrowers needing a bad credit business loan because it accepts credit scores as low as 570. This lender can provide up to $1,500,000 in working capital to be used for any business expense with almost no restrictions. You can also enjoy relatively fast funding with Fora Financial, receiving your funds within 24 to 48 hours.
And while some lenders charge prepayment penalties, Fora Financial offers a discount for repaying your debt early. However, your business must generate at least $20,000 per month — or $240,000 per year — to qualify. Plus, the lender uses a factor rate to represent the cost of borrowing, which can make it harder to compare loan options.
Read our full Fora Financial review.
How to qualify
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Fundbox: Best for startup companies
Up to $250,000
4.66% for 12-week terms
8.99% for 24-week terms
3 to 6 months
Pros
- Only three months in operation needed
- Receive funds as soon as the next day
- No prepayment penalties
Cons
- Short terms with payments due weekly
- Lowest borrowing amounts on this list
- May require a personal guarantee
Why we picked it
If you’re looking for a working capital loan for startups, Fundbox’s line of credit only requires a three-month business history for approval. It can provide up to $250,000 on a revolving basis — only charging interest on the funds you actually withdraw. It’s a great option for new companies with a limited credit profile, though you must generate at least $30,000 in annual revenue to qualify.
If approved, you can access your funds as soon as the next business day. However, a personal guarantee may be required, and you’ll need to be prepared to make weekly payments on any funds you borrow.
Read our full Fundbox review.
How to qualify
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $30,000
Bluevine: Best for lines of credit
Up to $250,000
7.80%
Up to 12 months
Pros
- Competitive starting rates
- Relatively quick funding times
- Line of credit replenishes with each repayment
Cons
- May require weekly payments
- Same-day funding could incur a fee
- Not available in Nevada, North Dakota or South Dakota
Why we picked it
A working capital line of credit is different from a loan because it allows you to borrow money as needed and only pay interest on the amount that you’ve withdrawn. Bluevine’s business line of credit can fund up to $250,000 of operational expenses. Your application may be approved in as little as five minutes, with funds hitting your business bank account instantly if you bank through Bluevine and within three business days if you’re transferring to an external bank account.
However, your business must have been in operation for at least a year and generate a minimum of $120,000 in annual revenue to qualify. And unless you’re able to meet even stricter criteria, weekly payments will be required.
Read our full Bluevine review.
How to qualify
In order to qualify, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 1 year
- Minimum annual revenue: $120,000
Accion Opportunity Fund: Best for minority entrepreneurs
$5,000 to $350,000
8.49%
12 to 60 months
Pros
- Lends to a diverse range of small business owners
- Offers business coaching and mentorship in English and Spanish
- No prepayment penalties
Cons
- Charges an origination fee
- Doesn’t list minimum credit score requirements
- Not available in all states
Why we picked it
Accion Opportunity Fund (AOF) is a nonprofit lender focused on helping business owners access the capital they need to start, grow and expand their companies. Though all are welcome to apply, 90% of AOF’s funding goes to minority entrepreneurs, women-owned businesses and companies with low-to-moderate income.
You must have at least 20% ownership in your company to be eligible for an AOF loan — although not all states are eligible for funding. You won’t be able to get a loan if you live in Montana, North Dakota, South Dakota, Tennessee, Vermont or the District of Columbia.
Read our full Accion Opportunity Fund review.
How to qualify
In order to qualify, you’ll need to meet lender’s criteria of:
- Minimum credit score: Not disclosed
- Minimum time in business: 1 year
- Minimum annual revenue: $50,000
Pros and cons of working capital loans
| Pros | Cons |
|---|---|
| Flexible funding for a wide range of business purposes Quick funding from some online lenders Accessible to a wide range of businesses with varied minimum requirements | Interest rates can be high, especially with factor rates Some lenders may require daily or weekly payments Collateral or personal guarantee may be required |
Frequently asked questions
The rates on working capital loans can vary widely by lender. However, it’s possible to get a favorable rate, especially if you have a strong financial profile. For example, Fundbox’s rates start at just 4.66% for its 12-week term.
Generally, when people talk about working capital loans, they’re referring to a short-term business loan. However, in some cases, it’s also possible to take out a line of credit to cover your working capital expenses.