$25,000 to $500,000
7.49%
6 to 84 months
iBusiness Funding’s term loan is our top pick for the best overall working capital financing because it offers a wide range of loan amounts with some of the lowest starting rates on this list. With lengthy repayment terms available 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, taking two to four days to fund 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 in working capital. With that time and money, you could tackle a number of projects for your business.
However, it’s worth noting that iBusiness Funding may require collateral or a personal guarantee to secure your loan. Also, while the lender offers SBA 7(a) loans up to $5,000,000, keep in mind that those come with different rates and funding speeds than its term loans.
Read our iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$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
If you’re looking for a fast business loan, OnDeck can deliver funds up to $250,000 as soon as the same business day (criteria applies). You can check your eligibility without a hard credit check with a streamlined application that takes only a few minutes to complete.
OnDeck has a fairly low credit score and time in business requirement, but be prepared for high interest rates and additional fees.
Read our OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
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.
120 months
The SBA CAPLine is a specific type of SBA 7(a) loan, but instead of paying out the loan in a lump sum like a traditional 7(a) term loan, it’s a line of credit you can draw on to use for working capital expenses.
SBA loans are backed by the Small Business Administration, making them more accessible for newly established businesses, minority business owners or those who can’t qualify for traditional business financing. You must operate a for-profit business within the U.S. and be in good standing with other government business loans to qualify for an SBA small business loan or CAPLine.
Read more about SBA lines of credit.
In order to qualify, you’ll need to meet SBA CAPLines’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$5,000 to $1,500,000
13% for a one-year term This provider offers loans with factor rates. Factor rates have been converted to interest-rates for a one-year term using the methodology explained here; the starting interest rate may be higher with shorter-term loans.
Up to 18 months
Fora Financial is our top pick for those needing a bad credit business loan because it accepts credit scores as low as 570. This lender provides between $5,000 and $1,500,000 to be used for any business expense with no restrictions. However, your business must generate at least $20,000 in monthly revenue to qualify.
You can also enjoy fast funding with Fora Financial, receiving your funds within 24 to 72 hours. And while some lenders charge prepayment penalties, Fora Financial offers a discount for repaying your debt early.
Read our Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Up to $150,000
4.66% to 8.99%
4.66% for 12-week terms
8.99% for 24-week terms
12 or 24 weeks
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 $150,000 on a revolving basis — only charging interest on the funds you withdraw. It’s a great option for new companies with a limited credit profile, although you must generate at least $30,000 in annual revenue to qualify.
If approved, you can access funds as soon as the next business day.
Read our Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
$5,000 to $250,000
7.80%
Up to 12 months
A working capital line of credit is different from a working loan because it allows you to borrow money as needed and only pay interest on the amount that you’ve borrowed. The Bluevine line of credit can fund up to $250,000 of business 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 as soon as 24 hours later if you don’t.
However, your business must have been in operation for at least six months and generate a minimum of $50,000 in annual revenue to qualify.
Read our Bluevine review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
$5,000 to $250,000
8.49%
12 to 60 months
The Accion Opportunity Fund (AOF) is a nonprofit lender focused on helping diverse business owners access the capital they need to start, grow and expand their companies. In addition to prioritizing minority entrepreneurs and women-owned businesses, the AOF provides educational resources, business coaching and access to support networks in English and Spanish.
You must have at least 20% ownership in your company and operate within the U.S. 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.
In order to qualify, you’ll need to meet Accion Opportunity Fund’s criteria of:
| 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 due to factor rates Some lenders require daily or weekly payments Collateral may be required |
The process for applying for working capital financing varies by loan type and lender. However, here are the steps you will likely need to take to get a small business loan:
1. Decide how much you need. Write a list of your company’s most urgent needs and estimated operating costs. Consider whether you need the funds upfront or prefer ongoing access to cash on an as-needed basis. Use our business loan calculator to estimate your borrowing power, making sure the weekly or monthly payments are within your budget.
2. Determine your eligibility. Lenders will typically list their business loan requirements on their website. Factors that determine your creditworthiness usually include your credit profile (your personal FICO Score and business credit score), time in business and annual revenue. Some working capital loans also require a personal guarantee or collateral, such as with secured business loans.
3. Compare small business lenders. You can apply for a working capital loan with a traditional bank, credit union or an online business lender. Compare interest rates, repayment terms and additional fees to find the best loan option for your business needs.
4. Gather required documents. Having essential documents ready can help speed up the application process. You will likely need a business plan, personal and business bank statements, personal and business tax returns and any applicable business licenses.
5. Submit your application. The application process is typically quick and automated, often done online. Your lender may reach out to you for additional information and next steps.
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.
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.
