Most common
Working capital for small business
Working capital is a lump sum you repay on a fixed schedule, usually daily or weekly, over three to eighteen months. It is the most common structure we place because it fits the most common problem: a specific expense with a known repayment source. Qualification is typically six months in business and $10,000 in monthly deposits.
- Amount
- $10,000 – $500,000
- Term
- 3 – 18 months
- Payment
- Daily or weekly, fixed
- Decision
- Often same day
- Funding
- 1 – 3 business days after signing
- Collateral
- Usually none; personal guarantee common
How it works
You receive a lump sum. You repay a fixed amount on a fixed schedule until the total agreed payback is satisfied.
The cost is usually expressed as a factor rate rather than an interest rate. A 1.25 factor on $50,000 means $62,500 repaid in total, regardless of how quickly you get there. That is a different mechanism from interest, which accrues on a declining balance — and it is why early payoff usually does not save money.
Underwriting is driven by your bank statements. Funders look at deposit consistency, negative days, existing debt service and how long you have been operating. Personal credit is one input among several, not the gate it is at a bank.
Who it fits — and who it doesn't
Good fit when
- A specific expense with a clear repayment source and a date
- You need the money in days, not weeks
- Your revenue is steady enough to carry a fixed daily debit
- A bank declined you on credit or time in business, not on performance
- The return on the spend is larger than the cost of the capital
Wrong tool when
- You want to refinance an existing advance — that usually compounds the problem
- The need is a multi-year asset purchase; term debt or SBA fits better
- Revenue is declining and the payment would be covered by hope
- The payment would exceed roughly 15–20% of monthly deposits
- You are not sure what the money is for
The cost, plainly
Working capital is priced short and priced accordingly. Factor rates in this channel commonly run in a range that, annualised, sits well above bank pricing — because the money is fast, unsecured and available to businesses banks decline.
That is the honest trade. It is worth taking when the spend earns more than it costs, and it is a bad trade when it is covering a hole that is still growing.
Run the numbers before you sign. The factor rate to APR calculator turns any offer into an annualised figure so two offers with different terms can be compared on the same basis.
Rates and terms are set by the funding partner and vary based on your business. Nothing here is an offer of credit.
Businesses that use it
Straight answers
How is this different from a bank loan?
Speed, documentation and pricing. A bank underwrites collateral and tax returns over weeks and prices accordingly. This channel underwrites bank statements in hours and charges considerably more for that speed and flexibility. Neither is better in the abstract — they solve different problems.
Does early payoff save me money?
On most working capital structures, no. The total payback is fixed at signing. Some funders offer an early payoff discount, but it has to be written into the agreement to be real. Ask before you sign.
Will I need to sign a personal guarantee?
Usually yes. Most unsecured business funding in this range carries a personal guarantee. Read what it covers. A separate document called a confession of judgment is a different and much more serious instrument — know which one you are being asked to sign.
How much can I get?
As a rule of thumb, funders size against monthly deposits — commonly somewhere between 50% and 150% of one month's revenue, depending on time in business, consistency and existing obligations. Your actual offer depends on the whole file.