What is a working capital loan?

A working capital loan is short-term financing that helps your business cover everyday operating costs such as payroll, inventory, rent, or marketing. You receive a lump sum upfront and repay it daily or weekly over 6 to 24 months at a fixed factor rate. Unlike long-term financing, you are not taking on years of debt. And unlike equity financing, you are not giving up a percentage of your profits. You get the capital you need and pay it back on a predictable schedule. A benefit of working capital loans is that you know exactly how much you will pay back at the time of signing. There are no hidden fees.

What is a factor rate?

A factor rate is a fixed multiplier used to calculate your total repayment amount. The formula is: funding amount x factor rate = total repayment. For example, a $50,000 loan at a factor rate of 1.11 means you repay $55,500 in total. A one-time origination fee also applies — at Credibly, most deals carry a 2.5% origination fee. On a $50,000 loan that is $1,250, making the total cost of financing $56,750.

What is a working capital loan used for?

Working capital loans help you cover the everyday costs of running your business, including payroll and staffing costs, inventory and materials, rent or mortgage payments, utilities, equipment repairs or replacements, and marketing and advertising.

How is working capital calculated?

Working capital is calculated using the formula: current assets minus current liabilities equals working capital. Current assets are everything your business owns. Current liabilities are everything your business owes within one business cycle. A positive number means you have enough to cover your short-term obligations.

Why is working capital important?

Working capital is important because it keeps your business running day to day. Without it, even a profitable business can struggle to pay its bills on time. It is also a measure of a business's ability to pay off short-term business expenses or debts. Having access to fast, flexible financing gives you the breathing room to handle unexpected costs and stay focused on growing your business.

How can you find a working capital loan that fits?

The right working capital loan is one that fits your cash flow, not just your immediate need. Before you apply, consider how much you actually need, what your daily or weekly payments will look like, and how long you want the term to be. Look for a financing provider that is upfront about costs, explains the terms clearly, and does not pressure you into a product that is not the right fit. A good partner will help you find the right option even if that means a smaller loan or a different product altogether.

How do you qualify for working capital loans?

Qualifying for a working capital loan with Credibly requires your business to be operating in the United States, have at least 6 months in business, generate $15,000 or more in average monthly revenue, deposit revenue into a business bank account, and have a credit score of 500 or higher. Credibly looks at your full financial picture, not just your credit score. No collateral is required for most loan amounts. Applying takes minutes and will not affect your credit score.

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Working capital loans for short-term business needs

Credibly working capital loans provide $25,000–$600,000 in short-term financing for small businesses. Factor rates start at 1.11*. Funds can arrive in as fast as 4 hours once approved.

Trusted by:

$3+

Billion in financing

Funding

As fast as 4 hours

Approval

As fast as 2 hours

55,000+

Small businesses financed

Here's what you get with a Credibly Working Capital Loan:

With a Credibly Working Capital loan you can access:

Business financing from $25,000 to $600,000
Terms from 6-24 months
Factor rates as low as 1.11*
Automatic daily or weekly payments

Working capital loan requirements and how to qualify

At Credibly, we look at your full financial picture, not just your credit score. While requirements for a working capital loan may vary, your business will generally need:

To operate in the United States
6+ months in business
$20,000+ in average monthly deposits**
Revenue deposited into a business bank account
550+ FICO score

Credibly uses a soft credit inquiry during the application process, which generally does not affect your credit score. If you’re not sure whether your business is a fit, the best way to find out is to apply or talk with a Credibly funding advisor about your options.

What our customers say about working with Credibly

How working capital loans work

A working capital loan is short-term financing that helps you cover everyday business expenses. Think payroll, inventory, rent, or a marketing push. It’s designed to keep your business moving when cash flow is tight.

You receive a lump sum upfront and repay it daily or weekly over 6–24 months at a fixed factor rate. Unlike long-term financing, you’re not taking on years of debt. And unlike equity financing, you’re not giving up a percentage of your profits or a stake in your business. You get the capital you need and pay it back on a predictable schedule.

What can you use a working capital loan for?

Hiring and payroll
Cover payroll during a slow season, or bring on additional help to support your next stage of growth.

Marketing
Launch a campaign, run a promotion, or put your brand in front of a new audience.

Managing cash flow
Create a cash flow buffer so an unexpected expense doesn’t knock the whole operation off course.

With a Credibly working capital loan, you can access:

Business financing from $25,000 to $600,000
Terms from 6–24 months
Factor rates as low as 1.11*
Automatic daily or weekly payments

We are trusted by:

How to apply for a working capital loan with Credibly

The online application starts with basic information about your business.

Apply online

Click “Get Started” to apply for a working capital loan.

Gather required documents

We require certain documents from you in the approval process. Be ready with bank statements and a government-issued ID to start.

Approval in as little as 2 hours

Your loan application will be reviewed and you can get approved in as fast as 2 hours.

Receive your funds

If approved, your requested loan amount can be transferred to your bank account as soon as 4 hours after you sign your offer.

When a working capital loan may make sense for your business

Pros

Fast decisions: Find out if you’re approved in as fast as 2 hours.
Funding speed: Funds can arrive as fast as 4 hours.
Flexible use: You can use working capital financing for a variety of business needs.

Cons

Factor rates, not interest rates: Because the approval process is more flexible than traditional bank loans, rates tend to be higher.
Fixed repayment obligation: Daily or weekly payments should fit your expected cash flow.
Collateral may apply: You may need to provide business collateral to secure larger loans.

Why do small business owners choose Credibly for working capital loans?

Simple business financing
Apply online in minutes. If approved, funds go straight to your business bank account as fast as 4 hours. We strive to create an intuitive financing experience for business owners.

The right loan for your business
We look at your full financial picture, not just your credit score, to find the right product and amount for you.

Best-in-class customer service
A Credibly financing expert is with you from application through your final payment.

Effortless automatic payments
We work with you to find the ideal repayment terms. Our automatic payment feature also lets you focus on what matters most: your business.

When a working capital loan may make sense for your business

Pros

Fast decisions: Find out if you’re approved in as fast as 2 hours.
Funding speed: Funds can arrive as fast as 4 hours.
Flexible use: You can use working capital financing for a variety of business needs.

Cons

Factor rates, not interest rates: Because the approval process is more flexible than traditional bank loans, rates tend to be higher.
Fixed repayment obligation: Daily or weekly payments should fit your expected cash flow.
Collateral may apply: You may need to provide business collateral to secure larger loans.

Get access to capital through our smooth, innovative funding experience.

Flexible financing with a data-driven approach
We know a credit score doesn’t always paint a full picture of your business. At Credibly, we use data science to better evaluate your business as a whole.

Secure and convenient checkout process that fits your schedule
Our state-of-the-art online checkout empowers eligible customers to complete their checkout process securely and on their own time.

Fast approvals with efficient processes
Your business needs don’t wait. Our process can get you approved for financing in as fast as 4 hours, so you can focus on running your business.

Frequently Asked Questions

What credit score is needed for a working capital loan?

A FICO score of 550 or higher is generally required for a Credibly working capital loan, but credit is only one part of the review. Credibly examines over 130 factors (including credit score) to get a comprehensive view of your business’s overall health.

How much working capital could my business qualify for?

Credibly working capital loans range from $25,000 to $600,000. The amount you may qualify for depends on your average monthly deposits, credit score, time in business, and other factors.

How much does a working capital loan cost?

The total cost of the loan is determined by a fixed factor rate and a one-time origination fee.

For example, a $50,000 loan at a 1.11 factor rate has a total repayment amount of $55,500 — a factor-rate cost of $5,500. A 2.5% origination fee adds $1,250. That brings the total financing cost to $6,750.

How are working capital loans repaid?

Repayment is made through automatic daily or weekly payments over a 6- to 24-month term. Because the factor rate is fixed, you’ll know the total repayment amount when you accept the loan offer.

What can a working capital loan be used for?

Working capital loans help you cover the everyday costs of running your business. Think payroll, inventory, rent, or a marketing push.

Common uses include:

Payroll and staffing costs
Inventory and materials
Business Rent or mortgage payments
Utilities
Equipment repairs or replacements
Marketing and advertising

Can I qualify for a working capital loan with uneven cash flow?

Uneven cash flow or seasonal fluctuations do not automatically rule out your business. At Credibly, revenue tells the real story. We look at the bigger picture, such as average deposits, trends, time in business, credit, and existing obligations, to assess the financial health of your business and help you find the right small business loan option.

What documents do I need to apply for a working capital loan?

Be ready to provide:

3–4 months of business bank statements
A government-issued ID

Depending on your business and application, Credibly may request additional documentation during underwriting. Having current, organized records available can help keep the review process moving.

How quickly can I get working capital if I qualify?

If you qualify, approval can happen in as fast as 2 hours. Funds can arrive in your bank account as fast as 4 hours after you sign your offer.

Should I choose a working capital loan or a business line of credit?

It depends on your goals:

A working capital loan may make sense when you need a set amount of cash for a defined expense and want predictable repayment.
A business line of credit*** may be better for recurring or uncertain needs because you can draw funds as needed and pay interest only on what you use.

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Apply for business financing up to $600,000

Find out how much you qualify for.
Applying will not hurt your credit score.
Do you meet the requirements?

In general you will need:

$15K+ in monthly revenue
6+ months in business
500+ FICO score
Revenue deposited into a business bank account

*Rates are included in your daily payback quote to simplify repayments and account monitoring. Rates, pricing, requirements and other terms and conditions subject to change without notice.

**$20K+ avg. deposits for a three-month average and the most recent month.

***Some products are made available through Credibly’s network of external funding partners