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Working Capital Financing
Secure immediate working capital for business expenses.
Same-day approval when you apply online.
No collateral requirements and simple application process.
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Funding up to $5M within 1-2 days
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No collateral needed
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Flexible payment options
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6-month to 24-month term length
Won't impact your credit
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Effortless Application
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Swift Approval and Funding
Experience same-day approval and have funds in your bank account within 1-2 days. Your business moves fast, and so do we.
A Guide to Working Capital Financing
One of the most common reasons a business fails is a lack of working capital. Lack of capital can be due to mismanaged cash flows or a company simply running out of money. To help avoid these situations for your business, it's important to know how much your daily operations cost, where your revenues are coming from, and when you should take on financing to run and grow your company.
Every company needs capital to operate and grow. Fortunately, small business working capital loans can provide a lifeline. A working capital financing is a type of short-term financing that a business takes out to cover its daily operating expenses. These financing are specifically used to cover a company's current liabilities instead of buying equipment, real estate, or other long-term assets.
Keep reading to learn more about working capital financing and how they can help you grow your business.
Benefits of Working Capital Financing
Having working capital is critical to run a successful, growing business. Being a type of unsecured business financing, they don't require borrowers to put up any collateral. They are an ideal fit for companies that are in a period of fluctuating cash flow.
Quick financing process
From application to money in the bank, the process takes just 24-48 hours. As a business owner, time is a precious commodity. Fast Capital Funding's simple lending process lets you focus on running your business.
Ideal for cash flow issues
When you need quick funding that is flexible on payment terms, working capital loans are an obvious choice. They provide an instant infusion of cash to pay for day-to-day expenses.
Maintain complete control
Unlike raising venture capital from an investor, a working capital loan allows you to keep full ownership of your company. You work hard to run your business, so reap the full benefits of the success!
Truthful, clear terms
Navigating small business loan terms can be overwhelming. Your dedicated Fast Capital Funding partner breaks down your offers from granters to help you make the right decision. We take pride in bringing simplicity to complex business needs.
Easy approval process
Almost all types of businesses with a credit score of 550+ can qualify for working capital financing. Fast Capital Funding compares 75+ granters to identify the best option for you. We handle all the application paperwork to save you time and money.
Lower cost with tax savings
Each calendar year, you can deduct any interest paid on a working capital financing. The interest being tax deductible further reduces the cost of financing.
Meet your Fast Capital Funding advisors
We make sure you're getting the best options on your business funding, and set your company up for success.
Minimum Requirements
Here is the minimum criteria to qualify for a working capital loan from Fast Capital Funding. Your Fast Capital Funding advisor will guide you through everything, even if you have bad credit.
At least $10K monthly revenue
Your company must be earning at least $10K per month in gross sales. At the moment we don't fund pre-revenue startups.
Credit score above 500
Any credit rating above 500 is okay to qualify for a working capital loan. The higher the score, the better the payment terms you can secure.
You've been in business for over 6 months
Your company should have been operational for at least six months. This shows us that your business is sustainable and will be able to pay back the financing.
You have a business bank account
Your Fast Capital Funding advisor will need 3-4 months of most recent bank statements to verify income during the approval process. This is often the only documentation needed from your end.
Small Businesses ❤️ Fast Capital Funding
Fast Capital Funding gave me cash flow to expand
I reached out to Fast Capital Funding when a chance to tackle a major project came my way. Thanks to the working capital they provided, I could purchase the essential materials and bring in the right team. I'll be turning to them for more funding as my business expands.
Liam D.
Got approved in minutes
Trying to grow a business isn't easy, especially when cash is short or seasonal trends. The Fast Capital Funding working capital loan I took bridged that gap for me. The process was straightforward, and now I can focus on what I love doing.
Shrinivasan H.
Highly recommend Fast Capital Funding
When my hardware store had a slowdown, I worried about covering bills. A friend suggested Fast Capital Funding, and their loan was just what I needed. Highly recommend them and super thankful for how fast the whole process was.
Anton V.
What is a Working Capital Financing?
Working capital is an accounting term used to describe a company's liquidity. When a business is liquid, it means it has enough money to meet its current, short-term obligations. Working capital is what you use to pay for day-to-day operating expenses like salaries, rent, and utilities.
A company needs working capital to fund and plan for sustainable growth. When a business doesn't have enough cash on hand to meet its working capital needs, it looks for financial options offered by banks and other providers like online granters.
For example, working capital granters can provide small business owners with funding to keep their businesses afloat during low sales seasons. They can then use the funds to pay for any business expenses, including office space rent, inventory, salaries, and equipment repairs and maintenance.
Types of Working Capital Financing
Below are the different kinds of loans you can apply for that are considered working capital financing:
Short-term loans: A short-term loan is the most common form of working capital financing. A short-term business loan is an unsecured loan that gets you approved for a fixed loan amount. You'll pay it back in regular monthly payments plus interest for a specified term length (i.e., the loan term).
Business line of credit: With a business line of credit, you get access to capital with a set credit limit that you can use on an as-needed basis. It works the same as a credit card or a home equity loan. You only get charged interest and have to make payments for the amount you use.
Invoice factoring: Invoice factoring, also called invoice financing, allows you to borrow money by using your accounts receivable as collateral. You can look at it as an advance on your unpaid invoices, possibly receiving up to 99% of your invoice amounts upfront. You pay the lender a factoring fee and they get their money back when they collect from your customers.
Merchant cash advance (MCA): A merchant cash advance, also called a credit card processing loan, allows you to receive cash immediately in exchange for a percentage of your future sales. Like invoice factoring, it's an advance based on your company's creditworthiness, future sales, and past credit card receipts. Repayment is based on a percentage of the daily balance in the merchant account.
Alternatives to Working Capital Financing
Here are other funding options we provide for financing business expenses. We'll guide you through all options when you apply online.
What Can Working Capital Financing Be Used for?
Working capital financing can be used for practically anything. However, many businesses use working capital financing when they need additional funds to pay for everyday business expenses while waiting for customer payments. Below are some common situations when you might want to take on a working capital financing.
Cash Flow Gaps
Sometimes, gaps in cash flow happen due to customers not paying on time or emergency situations, like broken equipment that needs to be repaired. A working capital financing can be used to bridge a short-term solution to the gap, ensuring your bills get paid on time.
Seasonal Lows
Many businesses make most of their sales during high sales seasons, such as the summer, winter, or holiday seasons. During seasonal slumps, however, companies may struggle because cash reserves can be used up quickly.
This is where working capital financing come in. This type of financing can provide the capital needed for companies to keep their businesses in operation even when there's less money coming in.
COVID-19 Assistance
The COVID-19 pandemic has negatively impacted many businesses, with some companies even having to close up shop due to low sales and increased expenses. If you require additional working capital to keep your business open, Fast Capital Funding is here to help.
Operational Costs
Working capital loans provide a safety net for startups and new businesses to stay afloat while they grow and get more customers. This type of financing can be used to pay for expenses that accrue every day (e.g., rent, utilities, and payroll).
Additional working capital can also help your business grow. With more money, for instance, a business owner can take advantage of supplier discounts by purchasing in bulk.
Emergencies
Just like in your personal life, unplanned costs and emergencies happen to businesses, too. But what if a company has its money tied up in inventories or other investments? That's where working capital financing are used — these funds can cover urgent expenses and provide financial relief during emergencies.
When Does It Make Sense to Use a Working Capital Financing?
A working capital financing is beneficial for businesses that need access to quick capital to cover operational expenses. This is because this type of financing is easy to apply and qualify for. Most forms of working capital financing are also unsecured, which means no collateral is needed to secure the financing.
While business owners can also get funds through equity financing, this requires them to give up a percentage of their ownership of the company. Working capital financing offer an alternative option for business owners who need additional funding but who also want to retain full control of their businesses.
If you're considering any type of business financing, make sure you understand your business needs. For instance, what do you plan to do with the money and how long will you need it? Before you take on any loans for your business, make sure you have a plan on how to pay that money back.
How Hard Is It to Get a Working Capital Financing?
Working capital financing are easily accessible and available for many different sizes and types of business. Most forms of working capital financing, such as short-term loans and business lines of credit, are unsecured, which is helpful for small companies that may not have current assets to secure a financing.
In addition, the application process is generally quick, and funding can be issued within a couple of days. Thus, working capital financing are an obvious choice for companies looking for quick capital infusion with flexible repayment terms.
You deserve the best options and an honest financial service provider who has your back.
From our humble beginnings, we remain committed to helping American businesses achieve success. We keep things simple, convenient and transparent.
Requirements to Get a Working Capital Financing
Whether you need cash to get through a slow sales season, deal with a broken piece of equipment, or take advantage of a business opportunity, working capital financing offer a quick way to borrow capital. Below are the top three eligibility requirements for securing funding with Fast Capital Funding.
Time in Business
Typically, your company must have been in business for at least six months to qualify for a financing. This is because lenders look at how long you've been operational to assess your creditworthiness. Your time in the industry represents how risky it is to grant to you a funding. The longer you've been in business, the lower the risk for granters to provide you with financing.
Average Monthly Revenue
For your company to qualify for working capital loans, you typically must be able to show that you generate at least $10,000 a month. Granters use your monthly revenue to calculate the maximum financing amount you can qualify for. They also want you to show a solid income history to make sure you can afford to pay back your financing.
Credit Rating
Your personal credit score is one factor that lenders and financial institutions look at when you apply for any kind of financing. At Fast Capital Financing, we recommend borrowers have a minimum credit score of 550. Although you can secure working capital financing with poor or bad credit, your credit score determines the interest rate you get.
The higher your credit score, the better charges you'll receive. This is because a fair or excellent credit score means your credit history shows you've been responsible and repaid your financing on time in the past.
Types of transportation businesses we fund
Fast Capital Funing funds all types of small businesses. Here's just a few industries we finance every day:
Trust Clarify Capital to Help You Get a Working Capital Financing
To run and grow a profitable business, it's important to get the funding you need when you need it. If you need accessible loans with flexible payment terms, it might be time to turn to working capital loans. The application and funding process is quick and you're not required to put up any collateral.
At Clarify Capital, we handle all the application paperwork to save you time and money. We also know navigating small business loans can be overwhelming. That's why you'll have a dedicated Clarify partner who will work with you to choose the best financing option based on your business goals.
Apply now and get the money your business needs in your bank account in as little as 24 hours.
FAQs about Working Capital Financing
Here's answers to common questions about working capital funding from business owners like yourself.
What types of working capital financing exist?
There are a variety of financing options for business owners to pick from. Some common types include: merchant cash advance, invoice factoring, business line of credit, and short-term financing.
Are working capital financing a good fit for small businesses and/or startups?
Yes. Small business and start-ups can benefit from an infusion of working capital in a number of ways. The funds can be used to help business owners and entrepreneurs achieve their goals and accelerate growth.
Can you get a working capital financing with no credit check?
Most granters will want to perform a credit check as a part of your application process. That doesn't mean you should be discouraged if your credit is less-than perfect. Various funding options are available to borrowers with wide ranging credit scores.
How are working capital financing and line of credit different?
Business credit lines provide access to working capital. That being said, they are not the same as traditional installment financing. The main differentiator is that for a business line of credit, you only pay interest on the funds you use.