Working Capital Funds
- Showing revenue? Access flexible working capital funds to grow your business.
- A popular business expansion tool because it's easiest to qualify for.
- Finance short-term business expenses, like rent, payroll and inventory.
Take advantage of an 85% approval rate - act now!
What is a Working Capital Loan?
Working capital funds, often referred to as a bridge loan, or merchant cash advance is not a loan. Instead of a standard loan structure, it involves receiving an upfront cash advance in exchange for a percentage of your daily credit card and debit card sales or monthly revenue. The unique aspect of working capital is that it can provide a swift and hassle-free method to obtain a business cash advance, without requiring collateral, even if your credit score is not ideal.
Unlike conventional loans, a working capital fund doesn’t follow the typical repayment terms based on fixed installments. Instead, the remittance is directly tied to a portion of your business’s sales or revenue, making it more flexible and aligned with your cash flow. This arrangement allows you to remit the advance at a pace that corresponds to your business’s performance.
Whether you need to cover immediate expenses, manage inventory, or seize growth opportunities, working capital funding can offer a convenient solution. By bypassing the need for collateral and considering your sales or revenue as the repayment source, this financing option provides accessibility for businesses that may not meet the requirements of traditional loans.
Working Capital Funding Details
3 -24 Months
As Fast As Same Day
1.10 - 1.45
$5K - $25M
Working Capital Pros vs Cons
PROS
Quick & Simple Application Process
Low Credit Score Accepted
Prepayment Discounts for Early Payoff
CONS
Annual Costs Can Be Higher than Traditional Loans
Designed for short term needs, bad for fit than long term financing
May Require A Personal Guarantee
How do Working Capital Funds work?
Working capital funding or a merchant cash advance is the preferred option for many businesses that need fast access to capital. Whether you’ve come across a growth opportunity that’s too good to pass up or you need capital, this type of financing provides funding to cover short-term operational expenses and other urgent business expenses. And you can often get funded in just 24 hours, so a working capital loan may help when cash on hand is tight
Once the funds are advanced to you, you’ll remit the funds by having a percentage of your daily credit card deposits withheld for the funder.
Who Qualifies for a Working Capital Financing?
Would Your Business Benefit From Working Capital?
Working Capital financing from Upwise Capital is designed to provide flexibility to a wide range of business types and situations. We understand that every growing company has unique business needs and circumstances.
If your financing needs involve:
- Maintaining daily operations and covering regular expenses
- Improving cash flow during seasonal fluctuations
Bridging gaps between purchase and payment cycles, as a type of financing for immediate needs rather than longer–term expansion
- Financing marketing initiatives or inventory purchases
And your business:
- Has been in operation for at least 6 months
- Generates at least $200,000 in annual revenue
- Accepts major credit cards as a form of payment
Then working capital financing may be able to help, even if your business:
- Is newer with limited credit history
- Faces cash flow constraints due to credit or personal factors
- Needs funding without using traditional collateral
Approval may depend on both business credit and personal credit, especially for the business owner. By focusing on your business operations, cash flow, and payment processing, we strive to provide accessible financing solutions to companies in expanding industries, unlike sba options through the small business administration, including SBA 7(a) loans that are government-backed for working capital needs and may be a better fit when a company can wait longer. Contact an advisor today to explore whether working capital loans are the right type of financing compared with other small business loans.
Merchant cash advance providers tend to have easy eligibility standards, so most small businesses shouldn’t have a problem qualifying.
Working Capital Requirements
any
over 500+
over $200K
6+ months
* Note: These working capital requirements are based on previous Upwise customers and is just an average.
Gain Access to Funds That Support Growth with Working Capital Funds
What truly set Mike apart was his honesty. He reviewed multiple lender options with me in a fair, transparent way, walking me through the pros and cons of each and helping me understand every angle. He encouraged me to move forward only with what felt right for my business, never once making me feel pressured to choose him or Upwise. That level of professionalism is rare.
Mike also worked hard to build genuine personal rapport — something no other representative I spoke with did. He took the time to understand my business, explored different paths, and made sure I felt confident and comfortable throughout the decision-making process.
The follow-up from Mike and every member of his team has been above and beyond anything I’ve experienced with other lenders. Every interaction feels thoughtful, client-focused, supportive and most important- genuine. I’m incredibly grateful for the experience and would confidently recommend Mike to anyone looking for a knowledgeable, ethical, and truly client-first lending partner.
Update: Leo contacted me, and after basically insulting me concerning their prior behavior, I decided to let them run my application. After being ghosted for the day, they finally came back and denied due to another loan my business was involved in. These people get their feelings hurt way to easy to be in this business. I would not recommend this company to anyone.
Upwise
What does Working Capital cost?
Let’s look at how you can calculate the actual cost of a merchant cash advance.
since many business working capital loans are compared by factor rate versus interest and interest rates. Unlike some term loans or an unsecured loan from a financial institution, this product is usually priced with a factor rate instead of a traditional interest rate.
A Cost Example of a Working Capital Product
Say you’re advanced $20K with a factor rate of 1.18. This is not the same as calculating a loan amount with a standard interest rate on a term loan.
$20K multiplied by 1.18 is $23,600, which is what you’ll need remit with your daily credit card transactions.
If your funder will be taking 15% of your future credit card sales and you’re estimating $25K a month in credit card transactions, you’d remit that advance in approximately 189 days with a daily remittance of $125.
You can also remit the advance on a weekly or bi-weekly options, if the funder offers that and if you qualify.Â
When is the Cost Worth It?
Merchant cash advances are fast, convenient, require little documentation and are great for those with a poor credit rating. Automatic payments or remittances can be convenient, but you should still assess affordability against expected sales. They tend to be worth their price only if you’re confident you can remit them quickly and without much harm done to your cash flow.
Apply for Working Capital Funds Now.
- Pursue new opportunities, upgrade operations, support inventory or boost marketing efforts.
- Bridge the gap in your company's cash flow or between longer term financing goals
- Apply today to unlock working capital that supports your goals without restrictions
Stay ahead of the curve - get access today!
Documents You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Credit Score
You may also be requested to provide the following for larger dollar amounts over $100K:
Balance Sheet
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
Sometimes business opportunities or unexpected expenses require fast access to funds. While conventional loans have lengthy approval cycles, you may not want to delay pursuing opportunities or solving problems. That’s where a working capital loan shines – it provides the cash flow flexibility to respond quickly without red tape. Depending on the business and lender, it may be structured as a lump-sum business loan or as one of several lines of credit options.
Rather than waiting weeks or months, our streamlined application evaluates your business’s financial health and payment processing. For small business owners, both online lenders and bank options are common sources of business financing when timing matters. If approved, funds may be deposited into your business bank account in as little as 1-3 business days. Best of all, repayment is simple through agreed-upon daily or weekly deductions based on a percentage of your card sales or bank deposits. This innovative model lets you borrow against future earnings and optimize your cash flow on your terms.
Why Upwise for a Working Capital Financing
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your funding type and you could have funds deposited into your account as soon as 24 hours. A capital loan can help business owners get access to business capital quickly when daily expenses or expansion put pressure on cash flow.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ funders. This means you're more likely to find the best match for your funding needs.
Working capital loans — key information
Provided by Upwise Capital · upwisecapital.com/working-capital-loans
Qualification requirements
- Annual business revenue
- Time in business
- Cash flow trends
- Business bank account activity
- Credit profile of the business owner
Common uses
- Payroll and employee expenses
- Rent and overhead costs
- Inventory purchases
- Marketing and advertising
- Seasonal cash flow gaps
- Vendor payments
- Unexpected business expenses
Best for
- Small businesses
- Seasonal businesses
- Service-based companies
- Retail businesses
- Businesses with temporary cash flow shortages
Key benefits
- Fast access to capital
- Supports business cash flow
- Flexible use of proceeds
- Minimal paperwork vs. traditional financing
- Helps capitalize on growth opportunities
Frequently asked questions
- What can a working capital loan be used for?
- Working capital loans are commonly used for payroll, rent, inventory, marketing, vendor payments, and other day-to-day operating expenses.
- Can I use a working capital loan to purchase equipment?
- While permitted in some cases, equipment financing is often a more appropriate solution for major equipment purchases because it typically offers longer repayment terms.
- How quickly can I receive funding?
- Many businesses receive a decision within hours and funding within 1 to 3 business days, depending on the lender and documentation provided.
- Is collateral required?
- Some working capital loans are unsecured, while others may require a general business lien or additional collateral depending on the lender and risk profile.
- What is the difference between a working capital loan and a business line of credit?
- A working capital loan provides a lump sum of funding upfront and is repaid over a fixed term. A business line of credit provides access to a revolving credit limit that can be drawn upon as needed.
Final Thoughts On Working Capital
In today’s rapidly evolving business landscape, securing the right financing solution is crucial for maintaining competitive advantage and sustaining growth. Working capital loans provide businesses with the agility to navigate cash flow challenges, seize unexpected opportunities, and fund essential operational expenses ranging from payroll and inventory to marketing initiatives and vendor payments. When you get a working capital solution tailored to your business needs, you’re investing in flexibility and speed that traditional financing simply cannot match. Working capital loans typically have repayment terms of 6 to 18 months, making them ideal for addressing short-term financial needs without the burden of long-term debt commitments.
These loans typically have repayment terms of 6 to 18 months, aligning perfectly with seasonal fluctuations and business cycles. With up to $400,000 that can be borrowed through working capital loans, businesses have access to substantial funding to bridge gaps, fuel expansion, or manage unforeseen expenses. As AI-driven lending platforms continue to revolutionize the approval process, businesses can now access capital faster than ever—often within 24 to 48 hours—with minimal documentation and flexible qualification requirements. Whether you’re a small business owner facing seasonal revenue variations or an established company pursuing growth opportunities, working capital financing offers the responsive, adaptable funding solution necessary to thrive in an increasingly dynamic marketplace. The key is partnering with a trusted advisor who can guide you through the options and ensure your financing strategy aligns with your long-term business objectives.