Working Capital Loans through Funding Circle

Get flexible and hassle-free working capital - perfect for small businesses with steady revenue who want to increase cash flow.

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Applying won’t affect your credit score!1

Why a Working Capital Loan?

Wondering if a working capital loan is right for your small business? If you want to increase your cash flow and don’t want to take on a long-term debt obligation, this working loan could be a good fit for you. You can use the funds for almost any business purpose. This includes taking advantage of new opportunities and covering unexpected expenses.

Our simple and straightforward application process can take less than 6 minutes. This allows you to focus on your business while your dedicated loan specialist takes care of the rest.

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Amount from $25.1K–$400K

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Factor rate as low as 1.152

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Term lengths between 6 months and 18 months

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Decision as fast as 24 hours and funds as soon as the next day3

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Since 2010, Funding Circle has helped businesses in over 700 industries access the capital they need. How can we help you?

Over $15.2 billion lent to 100,000 small businesses globally.

Pros and Cons of a Working Capital Loan


  • You don’t need a perfect credit score to qualify
  • You can get access to financing quickly
  • You can use these funds to cover almost any business expense


  • Daily or weekly payments can make cash flow harder to predict compared to other financing options
  • Fees can be higher compared to other financing options

You deserve better business finance

Funding Circle was created with a big idea: to revolutionize the outdated lending system and build a better deal for small businesses. With one 6 minute application we can help you find the right financing options for your needs, from lines of credit to term loans, cash advance and even Small Business Administration (SBA) loans. Let's get started.

Start your online application

Apply online in 6 minutes with one simple application.

Review your options

Your dedicated Account Manager will contact you as soon as possible to review your needs and help you find the best funding option for your business.

Get funded

Get a decision in as little as 24 hours and funding as soon as the next day accepting an offer.3

Get a Working Capital Loan through Funding Circle to:

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Upgrade your business

Upgrade your business

Tackle your to-do list with one loan for renovations, repairs, new supplies and technology.

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Cover upfront costs

Cover upfront costs

Get the resources you need now, like inventory, staff, supplies, and more with predictable monthly payments.

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Prep for busy season

Prep for busy season

Get ahead with our simple, fast application for inventory, staff, marketing and even tax expenses.

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Tackle an emergency

Tackle an emergency

Get quick cash to cover the unexpected, cash flow gaps or to replace critical equipment.

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Grow your business

Grow your business

Use our flexible terms and loan amounts to open a new location, buy another business or launch a new product.

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Working Capital Loan Frequently Asked Questions

A working capital loan is a loan that’s intended to be used for short-term expenses, such payroll, purchasing supplies, and investing in the upfront costs associated with a new project. Working capital is the difference between a business’ current assets and liabilities. Companies use this money to pay for day-to-day and short-term expenses. A company that experiences a cash-flow crunch and doesn’t have enough working capital is at risk of failing even if it has the potential to be profitable in the long run.

Businesses can use different types of financing to fund their working capital needs, including installment loans and lines of credit. Working capital loans tend to distinguish themselves with short repayment terms—reflecting the fact that they’re intended for short-term needs rather than a large or long-term investment. Funding Circle’s working capital lending partner offers loans with six to 18-month repayment terms and automatic daily or weekly payments.

Rather than charging interest, some working capital lenders charge a fee for borrowing money based on a factor rate. For example, your factor rate might be as low as 1.15, which means that for every $100 you borrow, you’ll repay $115. The total repayment amount is determined when you receive your loan based on the factor rate and - when applicable - other fees.

Lenders may offer either secured or unsecured working capital loans. A secured loan requires that you provide your business’ assets, and sometimes your personal assets, as collateral for the loan. While secured business loans may be easier to qualify for or offer lower fees, you’re also taking on additional risk. Unsecured loans, like the business capital loans from Funding Circle’s lending partner, might cost a little more but they don’t require collateral.

You can use a working capital loan for almost any business expenses. However, this type of financing is best suited for short-term expenses. For example, if a client wants to place a large order and you don’t have enough cash on hand for the upfront expenses, a capital loan could help you take advantage of the opportunity. Or, if your business experiences a temporary setback, you can use the money to keep your business operating until it gets back on its feet.

Working capital loans tend to be a relatively expensive type of financing. Therefore, newer businesses or businesses that haven’t established themselves (or their credit) may be a good fit. However, even a well-established business could find itself looking for a working capital loan for a short-term expense. This could be because the financing process can be much faster than taking out a traditional loan.

You generally won’t have to pay a fee to apply for a working capital loan. In fact, some lenders let you quickly prequalify online to find out if you’ll likely be approved. If you accept a loan offer, you may have to pay an origination fee on the loan amount. This could be subtracted from the loan’s disbursement.

Many lenders don’t charge prepayment penalties on working capital loans. However, if you’re charged a fee based on a factor rate, there isn’t necessarily an advantage to paying back the loan early. This is because your total repayment amount has already been determined.

Repaying a working capital loan can depend on the type of loan you receive and the lender. Funding Circle’s working capital lending partner offers daily and weekly repayments2. Once you receive your working capital loan, your payments will be automatically transferred from your linked business bank account until you’ve repaid the entire loan amount. The repayment terms generally range from six to 18 months.

A business capital loan can quickly offer you access to funding that can help you run and grow your business. If you’re struggling to purchase inventory, make payroll, or get through a slow season or temporary setback, the short-term nature of a capital loan can be a good fit. Additionally, the credit, business history, and revenue requirements may be easier to meet with a working capital loan than other types of financing.

The main drawbacks of working capital loans are the cost and repayment structure. Other loans may offer lower fees or charge interest that results in paying back less money overall. A loan that charges interest over time can also be a better option if you think you’ll be able to pay back the loan early and avoid some of the interest charges. Other types of loans may also require monthly payments, which can be easier to plan for and manage than daily or weekly payments.

Working Capital Loans for Small Businesses

Learn more about how working capital loans work, the pros and cons of this financing option, and more in this complete guide.

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What are factor rates and how do they work?

Some short term finance options use a factor rate to determine the cost of financing. In this guide, you’ll learn how to translate factor rates to APRs.

Learn more

Types of Small Business Loans and Financing Options

Working capital loans, term loans, lines of credit, what does it all mean? Read this comprehensive guide to learn more about the most popular types of small business financing.

Learn more

1 If your business is organized as a general partnership, your credit score may be impacted.

2 Weekly payments for capital loans have different minimum qualifying criteria than the daily payment option.

3 Approval and funding times may vary between lending partners.

4 Fee is waived for 6 months if a $5,000 initial draw is made within 5 days of opening account.

Funding Circle loans are made and arranged pursuant to California Financing License No. 6054785, North Dakota Money Broker License MB 102840, South Dakota Money Lending License MYL.3054, Vermont Commercial Lender License No. 1287979 CLL, and Florida Consumer Company License CF9901099.