Best working capital business loans in February 2025

Written by
Sarah George
Edited by
Rob Watts
Updated: Jan. 22, 2025

What to know first: Small business working capital loans are designed to provide a small amount of funding to cover operational costs, particularly when there’s a shortage in cash flow.

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National Funding: Best for unsecured working capital loans

4.4
Bankrate Review
Loan amount
$5k- $500K
Term: 4 - 24 months
Interest rate
Factor Rates Starting at 1.10
Fastest funding
1 business day
Apply nowArrow Right

on partner site

OnDeck: Bankrate 2025 Award Winner Best lender for startups

4.5
Bankrate Review
Loan amount
$5k- $250K
Term: 3 - 24 months
Interest rate
Starting at 27.30% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

QuickBridge: Best for flexible funding

4.2
Bankrate Review
Loan amount
$10k- $500K
Term: 4 - 24 months
Interest rate
Varies
Fastest funding
1 business day
Apply nowArrow Right

on partner site

SMB Compass: Best for bridge loan

4.4
Bankrate Review
Loan amount
$25k- $5M
Term: 6 - 300 months
Interest rate
Starting at 6.99%
Fastest funding
1 business day
Read our reviewArrow Right

on Bankrate

Fora Financial: Best for fast approval

4.5
Bankrate Review
Loan amount
$5k- $1.5M
Term: 6 - 18 months
Interest rate
Starting at 1.10 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

American Express: Best for fair credit

4.3
Bankrate Review
Loan amount
$2k- $250K
Interest rate
N/A
Fastest funding
Not disclosed
Apply nowArrow Right

on BusinessLoans.com

Accion Opportunity Fund: Bankrate 2025 Award Winner Best CDFI for small business loans

4.1
Bankrate Review
Loan amount
$5k- $250K
Term: 12 - 60 months
Interest rate
8.49- 24.99%
Fastest funding
Not disclosed

Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit

4.2
Bankrate Review
Loan amount
$10k- $150K
Interest rate
Starting at 10.00%
Fastest funding
Not disclosed

Lendzi: Best for merchant cash advance

4.3
Bankrate Review
Loan amount
$5k- $5M
Term: 3 - 15 months
Interest rate
1.1 - 1.5 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

SmallBusinessLoans.com: Best for personalized funding

4.4
Bankrate Review
Loan amount
$5k- $500K
Interest rate
8.49%+
Fastest funding
1 business day
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on partner site

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Compare the best working capital loans in February 2025

Before you sign on the dotted line, take a deeper look at our selections for the best working capital loans. You’ll want to compare potential lenders by looking at loan features and eligibility requirements, like loan amounts, minimum credit score requirements and minimum annual revenue.

LENDER BEST FOR LOAN AMOUNT MIN. FICO CREDIT SCORE MIN. ANNUAL REVENUE
Unsecured working capital loan $5,000 to $500,000 550 $250,000
Merchant cash advance $5,000 to $500,00 550 $100,000
Startups $5,000 to $1.5 million 570 $240,000
Fast funding $5,000 to $250,000 625 $100,000
Bridge loan $25,000 to $5 million 650 Not stated
Business line of credit $5,000 to $1 million 680 Not stated
Low interest $5,000 to $250,000 Not disclosed $50,000
Fair credit $2,000 to $250,000 Minimum FICO score of at least 660* at the time of application Average monthly revenue of at least $3,000

A closer look at our top working capital business loans

If one of the lenders in our table above seems like a good fit, you can learn more here. We’re taking a closer look at each option and highlighting the most important features of each lender. Our insights include each lender's loan offerings and what we like about them. 

National Funding: Best for unsecured working capital loans

Overview: Since 1999, National Funding has provided funding to over 75,000 small businesses with a focus on term and equipment loans. It’s known for its quick online applications, with approvals in as little as 24 hours. National Funding offers high loan amounts up to $500,000 with the flexibility to use the funds for any business expense. 

Lendzi: Best for merchant cash advance

Overview: Lendzi is not a direct lender, instead partnering with lending institutions to connect businesses with an organization that can fund their financial needs. The company works with over 60 partners and has serviced over $500 million in loans to date. Because Lendzi works with so many partners, a single application represents many chances for funding approval. 

Fora Financial: Best for startups

Overview: Founded in 2008, Fora Financial has helped thousands of small businesses secure short-term funding. It works with businesses that have less-than-perfect credit, providing access to term loans or revenue advances. Businesses can secure working capital loans for as little as $5,000 or up to $1.5 million.

OnDeck: Best for fast funding

Overview: OnDeck is an online lender providing fast, short-term loans and business lines of credit to fair credit businesses. It has helped businesses secure over $15 billion in funding over the last 18 years, giving it a leg up on experience over new fintech lenders. With OnDeck, you can get your loan decision within a few hours of applying online if you catch the 10:30 a.m. cutoff time. Many approved loans get funded within the same business day or within two to three business days. Loan amounts are from $5,000 to $250,000.

SMB Compass: Best for bridge loan

Overview: SMB Compass is an online lender that’s funded millions of dollars in small business loans over the last seven years. It provides an impressive selection of nine business loans with low starting rates to boot. SMB Compass offers bridge loans that go up to $5 million, a high loan amount compared to other lenders. It’s also transparent about interest rates. Interest rates vary, starting at 12.00 percent APR, which is competitive for a short-term loan.

Wells Fargo: Best for business line of credit

Overview: Wells Fargo is a bank with a brick-and-mortar presence providing flexible business loan options for both small and established businesses. It offers low starting rates on three different business lines of credit and SBA loans. Wells Fargo offers flexible business lines of credit options, with varying credit limits and features to serve different purposes. 

Accion Opportunity Fund: Best for low interest

Overview: Accion Opportunity Fund is a nonprofit offering alternative lending for small businesses that can’t gain funding in the traditional market. The majority of its clients come from underserved communities, such as businesses in low-income areas. This alternative lender focuses on microloans with low interest rates starting at 8.49 percent. As a nonprofit, Accion Opportunity Fund can keep rates low since it doesn’t aim to turn a profit from its loans.

American Express Business Blueprint™: Best for fair credit

Overview: American Express Business Blueprint™ provides a business line of credit that’s accessible to many small business owners because of its eligibility requirements. It offers a credit limit ranging from $2,000 to $250,000 if your business qualifies. The company considers businesses with a lower credit score than many competitors, who often require a FICO score of at least 680. 

What are business working capital loans and how do they work?

A working capital loan is designed to infuse cash into the business for everyday operations, such as marketing, inventory or payroll. These loans boost your business’s working capital, which is your current assets minus liabilities. The positive amount left over is the amount you can use for day-to-day purchases or to expand your business. 

Some lenders like Credibly and Triton Capital offer loans, specifically called working capital loans. But you can use other loans to boost your business’s working capital, including short-term loans and business lines of credit. 

How does a working capital business loan work?

Working capital loans for small businesses tend to offer short repayment terms like six to 36 months. They may also offer fast loan approvals and funding within one to three days due to the nature of the loan. 

Depending on the type of loan, working capital loans may be easier to qualify for than standard term loans. They may require only a year in business and a personal FICO score of 500 to 600. 

Most working capital loans will have a set repayment schedule with fixed payments. If you open a business line of credit, your credit limit will reset as you pay off the loan, allowing you to borrow more funds as needed. 

Requirements for a working capital business loan

Every lender sets its own standards for granting working capital loans to small businesses. In general, these loans have lenient eligibility criteria since they’re meant for small, everyday purchases.

Requirements you can expect:

  • Annual revenue: Lenders require your business to make a specific amount monthly or annually to show steady cash flow. For working capital loans, these can range from $36,000 to $250,000 annually. 
  • Time in business: Most lenders prefer businesses to show they have several years in the market. But working capital loans can offer loans to businesses with three months to two years in business. 
  • Credit score: The minimum credit score is based on how much risk individual lenders are willing to take on. It’s typically set between a 625 and 680 FICO score, but some lenders go as low as 500. 
  • Industry: Lenders evaluate your business’s financial statements and risks for your industry. In some cases, the lender posts a list of industries it won’t work with, such as consulting or financial services. 
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Lenders often use your personal credit score to determine creditworthiness, though a business credit score may be weighed for more established businesses.

How to apply for a working capital loan

When applying for a working capital business loan, follow a few steps:
1. Calculate how much you need. Total all the operating expenses you’ll be using the loan for to arrive at a loan amount suitable to your needs.
2. Check the lender’s eligibility criteria. Know your credit score and annual revenue, and check the lender’s minimum requirements to make sure that your business meets them.
3. Get preapproved for the loan. If a lender lets you prequalify, you can see the rates and loan amounts your business qualifies for without a hard check on your credit. Submit the financial statements and other documents that the lender needs to assess your creditworthiness.
4.Compare. Don't settle for the first lender you apply with. Make sure to compare loan terms across several lenders to get the best deal.
5. Sign the loan agreement. After choosing the best loan offer, read through the loan terms and ask any questions up front. Sign the loan agreement when you’re ready.

Types of working capital business loans

Your business can use various types of business loans to boost working capital. Depending on the specific use and your business qualifications, consider these options:

Pros and cons of working capital loans

Working capital loans work well for small businesses needing fast funding to cover everyday expenses and gaps in cash flow. But you might pay for the convenience. Make sure to consider the pros and cons of working capital loans before you apply for one.
 

Pros:

  • Get cash fast. Many lenders fund working capital loans fast — usually within a few days — though it depends on the type of loan and how much you need. 
  • Typically use as needed. Unless you go with a term loan, your business can typically use the funds for any expenses. You may have to state the reason you need the funds for a term loan. 
  • Relaxed eligibility requirements. Businesses with bad credit can find loans to increase working capital, including alternative loan options tied to accounts receivable.

Cons:

  • Short, aggressive repayment terms. Most working capital loans require repayment within a few months, such as six or 18 months. They may also require daily or weekly payments, an aggressive schedule that cuts into profits.
  • Potentially high interest or fees. Some working capital loans come with high interest rates, upwards of 75.00 percent, while others charge factor rates and additional fees like processing fees. Factor rates are known for converting to a high interest rate since they’re often used with risky types of loans. 
  • Low loan amounts. The loan amount that you qualify for may be lower than a standard business loan. This may be due to aggressive repayments or a risky credit profile.

Who should get a working capital loan? 

Businesses with a temporary shortage of cash may need fast funding through a working capital loan. For example, a seasonal or economic downturn or unpaid invoices could lead to gaps in cash flow. Businesses may also need extra capital after an unexpected expense, such as repairing or replacing equipment. 

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As you’re exploring working capital business loans, watch out for these red flags:

  • Upfront fees. Avoid paying application or other fees before your loan is approved. 
  • Early repayment penalties. Some lenders charge early repayment fees, which can cut into your savings if you try to pay your loan off early. If there’s a chance you want to pay your loan off early and save on interest costs, make sure to avoid loans that penalize you for good financial habits.
  • Lack of clarity. Don't sign for a loan if you don't understand the terms of the agreement.
  • Pressure tactics. Some lenders may try to pressure you to make a decision quickly. Make sure you take the time you need to compare multiple offers and make the best decision for you. 

Alternatives to working capital business loans 

Getting a loan for operational expenses may not be the best choice for every business. Other ways to cover your costs include:

How to get a working capital loan

No matter which lender you choose, there are some guidelines for applying for a working capital loan. 

  1. Get to know your credit score and report. Understanding your creditworthiness will help you narrow down which lenders and financial products are accessible to you. Business lenders often look at your business and personal credit scores.
  2. Decide which type of business loan you want. There are short-term loans, traditional term loans, SBA loans and lines of credit available for use as working capital. Each product has different pros and cons. 
  3. Figure out how much loan you can afford. Factors like gross annual revenue and current debt will help inform how much you will get approved for. Don’t borrow more than you can responsibly pay back. You can use a business loan calculator to determine whether you can afford the monthly repayments.
  4. Compare loans and lenders. Start looking at lenders who offer the type of working capital loan you want. Be sure to compare the same term length and loan amounts. 
  5. Gather documents. Your loan application will require a lot of financial disclosures, and preparing the information in advance will expedite the process. Required documentation may include articles of incorporation, business name registration, business tax forms, profit-and-loss statements and outstanding debt information.
  6. Apply for the loan. Many lenders have an online application process, making applying relatively easy if you have your documents in hand. Depending on the lender, there may be an underwriting process that requires someone to reach out to you for more information.

Where to get a working capital loan

Nearly every lender offers loans that can boost your working capital, though not every lender provides working capital loans specifically. The best place for your business to get a working capital loan will depend on your business’s creditworthiness. Options to consider:

Banks

Traditional banks offer a variety of business loans that you can use for operational expenses. These may include business lines of credit, term loans or working capital loans. But banks tend to have tight lending requirements, such as requiring two years in business and a personal credit score of 670 or higher. 

Online lenders

Online lenders work well for businesses with fair-to-bad credit or those needing fast funding. The minimum FICO credit score set by these lenders can range from 500 to 650. Most online lenders also fund within 24 to 72 hours, ideal if you need extra working capital right away. 

SBA lenders

Nearly any SBA loan can be used as a business working capital loan, such as the 7(a), Express or Microloan. Express loans work well if you need fast SBA funding, but expect other SBA loans to take 30 to 90 days for approval. 

These loans are backed by the U.S. Small Business Administration, and lenders are required to keep interest rates below the SBA’s maximum rate. Your business still must meet the criteria set by the lender, which may be strict. Depending on where you live, you may be able to work with a Community Advantage lender, which offers SBA 7(a) loans to businesses in underserved communities. 

Community Development Financial Institutions (CDFIs)

Underserved businesses that can’t get access to traditional funding can also get a loan from a Community Development Financial Institution (CDFI). CDFIs lend to specific communities and provide education to support the small business’s success. CDFIs can be banks, credit unions, non-profit organizations or loan funds. 

Minority Depository Institutions (MDIs)

Minority Depository Institutions (MDIs) are defined as institutions with either:

  • Mostly owned by minority individuals or 
  • Most of its board is made up of minority individuals; serving minority communities

MDIs typically serve minority communities through lending and additional resources, such as helping non-English speaking individuals. But MDIs aren’t limited to serving those in a minority group, allowing others to support their business model. 

Find an updated list of MDIs that are supervised by the Office of the Comptroller of the Currency (OCC).

Frequently asked questions about working capital loans

How we chose our best working capital business loans

Bankrate's trusted small business loan industry expertise

Read our full methodology

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best working capital business loans, we researched banks with fair eligibility requirements and programs. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees. These lenders were also evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.