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Working Capital Loan

Dated October 14, 2026

A working capital loan is short-term business financing that covers day-to-day costs like payroll, rent, inventory, and supplier bills while you wait for revenue to come in. It isn't for buying long-term assets. It keeps the business running through gaps in cash flow.

When owners look for one

• Customers pay on 30, 60, or 90-day terms, but your bills are due now.
• You run a seasonal business and need to stock up before the busy period.
• A large order came in and you need cash to fill it.
• An unexpected expense has pushed cash below what you need for operating costs.

Common forms of working capital financing

• Term working capital loan. You get a lump sum and repay it on a set schedule.
• Business line of credit. You draw what you need, up to a limit, and repay as you go.
• Invoice financing or factoring. You get cash now against invoices your customers haven't paid yet.
• Merchant cash advance. You get an advance that is repaid from your future card sales.

Each one fits a different cash-flow pattern. Which ones you can get depends on your revenue, time in business, credit, and industry.

What lenders typically look at

• Time in business
• Monthly or annual revenue
• Business and personal credit
• Bank statements that show your cash flow
• Your industry and existing debt

Find out what fits your business