Bridge the gap between bills and payments
Working capital loans
A fixed-payment loan that covers payables, payroll timing and seasonal dips while your customers' invoices catch up.
- Typical amount
- $10,000 to $150,000
- Typical term
- 6 to 18 months
Checking your rate is a soft credit pull and won't affect your credit score.
When this loan makes sense
Most cash-flow problems are timing problems. Your supplier wants payment in 15 days and your biggest customer pays in 60. A working capital loan covers that gap with one fixed monthly payment, so you are not juggling due dates.
Keep the term short. Working capital should be repaid by the cash it frees up, so most owners choose 6 to 12 months. Shorter terms also cost less in total.
A good fit for
- Paying suppliers while you wait on net-30 or net-60 invoices
- Getting through a slow month before your busy season
- A large deposit on a signed contract you can see the payment for
- Keeping a cash cushion while a big receivable clears
Not the right tool for
- Covering losses that repeat every month with no fix in sight
- Paying off another short-term advance with a higher payment
- Anything you could cover with a card paid in full this month
Not sure? See when a loan helps, and when it doesn't.
How it works
The details that matter for this job
01
One payment a month
A fixed ACH on the same date each month. No daily or weekly debits that drain your account between deposits.
02
Short terms, lower cost
Terms from 6 months. The shorter the term, the less interest you pay in total.
03
Pay it off early, free
No prepayment penalty. When the big invoice lands, pay the loan off and stop paying interest.
The cost, in dollars
A representative example, worked all the way through
Representative example
Example only
- Loan amount
- $40,000
- Term
- 12 months
- APR
- 16.9%
- Monthly payment
- $3,646
- Total interest
- $3,756
- Origination fee (3%)
- $1,200
- You receive
- $38,800
- Total cost of borrowing
- $4,956
- Total repaid
- $43,756
Illustration only, not an offer. Uses the midpoint of the Strong profile's APR range at 12 months. Your APR, payment and total cost depend on your profile, amount and term.
Example APR ranges at 12 months
The same published bands price every loan. Here is where each profile lands at this term.
-
Prime
740+ credit
9.9%–13.9% APR
-
Strong
690–739 credit
13.9%–19.9% APR
-
Established
650–689 credit
19.9%–27.9% APR
-
Building
620–649 credit
27.9%–35.9% APR
Fees on this loan
- Origination: 3% one-time, deducted from the funds you receive
- Late payment: $25 after a 10-day grace period
- Returned payment: $15 if an ACH bounces
- No application, maintenance or prepayment fees
A borrower review
Sample review
“Our biggest customer pays in 60 days and our suppliers want 15. The loan covered the gap with one payment a month instead of the daily debits I had before. I paid it off two months early and the interest just stopped.”
Tomás Herrera
Herrera Produce Supply · Pueblo, CO
$35,000 · 12 months · working capital
A sample review written for this design demo, not from a real borrower.
Read more borrower reviewsQuestions about working capital loans
How fast can a working capital loan be funded?
Our fastest path is 24 hours from e-signing an accepted offer. Sign before 12 pm MT on a business day and most borrowers see funds the next morning. The application and review add up to one business day before that.
Is this a line of credit?
No. It is a term loan: you receive the full amount once and repay it in fixed monthly payments. If you need to draw and repay over and over, a bank line of credit is usually the better tool, and we will tell you so.
Can I use it for payroll?
Yes, when it bridges a timing gap, like payroll due before a large customer payment. If payroll is short every month, more debt usually deepens the problem, and an underwriter will say so.
More answers on the full FAQ, including missed payments and personal guarantees.
See your own numbers
The application opens with this loan's example already filled in. Change anything and the total cost updates as you go.