What are Working Capital Loans & Lines of Credit?
A working capital loan is short-term, revenue-based financing of $100K to $10M+ that funds in 2 to 10 business days, priced at 1.25%–4% per month. As of 2026, it's the fastest way to cover payroll, inventory, or growth-driven cash gaps when a bank can't move quickly enough — and at the same speed as a merchant cash advance it costs roughly half as much because the payment is monthly rather than a daily extraction from sales.
How It Works
A working capital loan is the fastest way to fund a healthy business when timing — not the underlying numbers — is the problem. Payroll hits Friday, a big invoice gets paid the 15th, and the bank's three-week approval cycle does not bend. This is the tool for that gap.
Lenders here look at your revenue and bank deposits over the last twelve months rather than at collateral. If the business is profitable enough to comfortably carry a fixed monthly payment, you qualify. As of 2026, loans typically run around 10–15% of annual revenue and fund in 2–10 business days.
It is easy to confuse this with a merchant cash advance, or MCA — but the difference matters. MCAs pull repayments daily or weekly straight from your sales, which can choke cash flow and rarely let you save by paying off early. The product we use is paid monthly and rewards early payoff, which cuts the real cost roughly in half.
Often, this loan is a bridge. We close it in days, then spend the next six to eight weeks building a permanent line — usually one secured by your unpaid invoices — that takes over once it is in place.
The right fit: a healthy business, capital needed in days, no large pool of commercial invoices yet to borrow against. The wrong fit: already juggling multiple MCAs, revenue trending down, or financing an acquisition. We will say so up front rather than waste your time.
Quick Facts
| Facility / Loan Size | Loan sizes from $100K to $10MM+, sized at roughly 10–15% of annual revenue |
|---|---|
| Funding Timeline | Funding in 2–10 business days; emergency payroll situations have closed in 24–72 hours |
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Key Features & Benefits
Loan sizes from $100K to $10MM+, sized at roughly 10–15% of annual revenue
Monthly payments — not daily or weekly extractions from sales like an MCA
Terms of 6–48 months, with revolving line structures available from select lenders
Funding in 2–10 business days; emergency payroll situations have closed in 24–72 hours
Pricing 1.25%–4% per month all-in; the best-priced revolving versions sit in the mid-teens true APR
Real prepay forgiveness on the better products — pay off early, save the unused interest
Subordinate options that don't require senior lien position (will sit behind an existing factor or ABL)
Underwritten on revenue history and deposit consistency, not on credit score gates or hard assets
Personal credit matters more here than in asset-based lending — clean 680+ FICO meaningfully widens options
Used as the "step one" bridge while a slower asset-based facility (ABL, factoring, SBA) underwrites in parallel
A consistent 3-month run of healthy deposits is the practical gate — a soft December tells a story lenders don't want to see
Working Capital Loans & Lines of Credit - Common Questions
Get answers to the most common questions about working capital loans & lines of credit
See It In Action
Real companies using Working Capital Loans & Lines of Credit to solve their capital challenges
$1.475MM Bridge for Medical Practice M&A
A surgeon needed $1.475MM in bridge capital before closing his hospital acquisition. We funded it in 2 weeks. A lesson in mentorship and partnership.
Oct 7, 2025
How Long Does Business Financing Really Take?
Business financing timelines vary wildly. Some deals close in days, others take months. Here's exactly what to expect at each stage.
Jan 24, 2026
Subordinated Bridge for Data Center Operator
Data center company needed fast, flexible liquidity to cover construction overruns before their Q1 equity capital close.
Dec 19, 2025
Other Funding Solutions
Invoice Financing
Invoice factoring is the practice of selling unpaid B2B invoices to a factor for 75%–95% of face value within 24–48 hours, then receiving the balance (minus a 0.25%–1% fee per invoice) when the customer pays. As of 2026, pricing typically runs Prime + 1–6%, facility sizes range from $250K to $100MM, and the facility scales automatically with sales. Approval looks at your customers' credit rather than your tax return — which is why it works for growing companies whose financials don't yet tell the full story.
Learn more about Invoice Financing →Equipment Leasing
& Financing
Equipment leasing and financing covers $100K to $50MM+ of machinery, vehicles, or technology over 3–7 year terms, with advance rates of 70%–85% of liquidation value and pricing of Prime + 3–10%. As of 2026, financing the asset directly is almost always cheaper than drawing on a working-capital line for the same purchase. Sale-leaseback structures let you extract 50%–70% of the equity from equipment you already own without adding a new debt covenant.
Learn more about Equipment Leasing & Financing →Asset-Based Lending
Asset-Based Lending (ABL) is a revolving credit line — typically $250K to $25M, priced at Prime + 1–5% — secured by a combination of accounts receivable (70%–90% advance), inventory (50%–75% advance), equipment, and sometimes real estate. As of 2026, ABL is the standard replacement for a maxed-out bank line when a company has hard assets but doesn't fit a traditional credit box. Most bank ABL desks start at $3–5M minimums, which is why deals below that size usually need an advisor with multiple lender relationships.
Learn more about Asset-Based Lending →