5 Best Working Capital Loans of 2023

5 Best Working Capital Loans of 2023

Ads by Money. We may be compensated if you click this ad.Ad

Best for Quick Application
Best Overall Best for Bad Credit Best for Flexible Payments Best for Small Business
Bluevine Kabbage Fundbox PayPal QuickBooks Capital
Our Partner
Loan Amount

Up to $250,000

Up to $250,000

Up to $150,000

Upt o $150,000 for first-time borrowers; up to $250,000 for repeat borrowers

Up to $150,000

Minimum Credit Score




Not applicable; credit score never pulled


Loan Highlight

Application decisions in as little as five minutes; same-day funding possible

Owned by American Express

APR starting at 4.66%

Loan payments are a set percentage of your PayPal sales

Only $50,000 in annual revenue is required

Sometimes, your business needs some extra funding to bridge the gap between busy seasons. A working capital loan may be the right financial solution to keep your company afloat.

Before you commit to a particular lender, it’s critical to do your due diligence. That’s why Money has compiled a list of the best working capital loans available today. Our selections offer standout features that are worthy of your consideration.

Keep reading to see our reviews of the best working capital loan options.

Our Top Picks for the Best Working Capital Loans

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

Are you in need of a financial boost for your Small Business?

Get the capital you need to reach your goals with a Small Business Loan. Select your state to get started today!

HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas

Get Started

Best Working Capital Loans Reviews

  • Average monthly revenue requirement is only $3k
  • May get approved quickly with funding the next business day
  • No origination fee or prepayment penalty
  • Flat fee based on your current monthly balance based and loan term
  • Currently offering a $250 welcome bonus (through February 2023)
  • Highest credit score requirement on our list (640)
  • Many complaints about the loan application process and customer service
  • Monthly fee may be high depending on your loan term


Term Length
6, 12, or 18 months
Loan Amount
Up to $250,000
Minimum Credit Score
Required Time in Business
1+ years

Why we chose this company: Kabbage offers a convenient working capital loan product and is owned by financial industry giant American Express (Amex).

Kabbage gives qualified business owners a working capital line of credit of up to $250,000 and allows them to take up to 18 months to pay off what they borrow. While you’ll need at least a 640 credit score to qualify (the highest of the working capital loans we reviewed), its income requirement is the lowest we’ve seen: $3,000 per month, on average. That means this business funding option could be great for a startup.

Kabbage loans don’t feature an APR or interest rate. Instead, you’ll pay a flat fee based on your current monthly balance and loan term:

  • 6-month term: 2-9% of your monthly balance
  • 12-month term: 7.5-18% of your monthly balance
  • 18-month term: 15.75-27% of your monthly balance

Each draw on your line of credit is considered a separate loan with its own term and fee.

Kabbage doesn’t charge an origination fee or prepayment penalty, however. Plus, if you qualify, your online application may get approved in minutes, and your funds disbursed within a business day of your loan offer.

Note: While the Kabbage working capital loan is worthy of our top pick, some customers have had a bad experience with the application process and the customer service department. We encourage consumers to do additional research before making a commitment.

  • Fast application decision
  • Same-day funding possible
  • No origination fee, account maintenance fee or prepayment penalty
  • APR starting at 6.2%
  • Required monthly revenue is high at $10K
  • Business must be a corporation or an LLC
  • Loan product not available in Nevada, South Dakota or North Dakota
  • Longest term length is 12 months


Term Length
6 or 12 months
Loan Amount
Up to $250,000
Minimum Credit Score
Required Time in Business
6+ months

Why we chose this company: Bluevine can approve qualified borrowers in as little as five minutes via an online application. Plus, if approved, you may be able to get same-day funding with a $15 wire transfer.

Bluvine’s eligibility requirements are on par with other working capital loan products we’ve reviewed. Your credit score must be higher than 625, and your company must be at least six months old. Approved Bluevine customers can access a business line of credit of up to $250,000 issued through Celtic Bank, a Utah-Chartered Industrial Bank. They can then take up to 12 months to repay what they draw

Well-qualified borrowers could see an APR as low as 6.2%. Plus, Bluevine doesn’t charge origination fees, account maintenance fees or prepayment penalties.

Your payments will get auto-debited from your business bank account on a weekly or monthly basis. That way, you don’t have to worry about forgetting to pay your bill.

  • Customers with fair or poor credit may qualify
  • Fast application decision
  • Funding as fast as the next business day
  • APR starting at 4.66%
  • No prepayment penalty
  • Short repayment terms
  • Required annual revenue is high at $100K


Term Length
12 or 24 weeks
Loan Amount
Up to $150,000
Minimum Credit Score
Required Time in Business
6+ months

Why we chose this company: Fundbox can help borrowers with less than stellar credit access the capital their business needs. You only need a 600+ FICO rating to meet the lender’s credit score requirement.

Fundbox borrowers also need $100,000+ in annual revenue and to have been in business for at least six months to qualify for a line of credit. (The company’s term loan product is currently in beta testing.)

Its online application process is quick, and you may get a decision in as little as three minutes. If approved, you could get your funds the next business day. Loans may be issued directly through Fundbox or First Electronic Bank, a Utah-Chartered Industrial Bank.

Fundbox’s APR starts at 4.66% for 12-week terms. Your weekly payments will get auto-debited from your business bank account, and there’s no prepayment penalty if you pay off the loan early.

The company is also beta testing Fundbox Plus, a $99 per month subscription service. Members get a 52-week term option, 20% off weekly fees, a monthly auto debit option, the ability to delay their first payment for up to 28 days and priority customer service.

Pro tip: If you’d like to explore other business funding options, take steps to improve your credit score.

  • Monthly payments are a percentage of your PayPal sales
  • No credit check required
  • Fast application and funding process
  • No other fees or prepayment penalties
  • Must pay 5-10% of your loan balance every 90 days
  • Must use other funds to make payments if your Paypal sales are insufficient
  • Not available in Virginia, South Dakota or North Dakota
  • Many online complaints about the company, some about the loan product


Term Length
Varies based on PayPal sales
Loan Amount
Up to $150,000 for first-time borrowers and $250,000 for repeat borrowers
Minimum Credit Score
Required Time in Business
90+ days with an active PayPal Business or Premier account

Why we chose this company: You can repay a PayPal Working Capital loan via a predetermined percentage of your PayPal sales each month. So, if you don’t make any sales through PayPal during a given month, you don’t have to remit a loan payment for that period.

Additionally,PayPal never checks your credit, and you may not need to submit any supporting documentation with your loan application.

The company’s main requirements are:

  • Maintain an active PayPal Business or Premier account for 90+ days
  • Make $15,000 in annual PayPal sales via your PayPal Business account ($20,000 with your PayPal Premier account)
  • Have no outstanding PayPal Working Capital loans

If you’re eligible, you could get approved and funded by WebBank in minutes.

PayPal charges borrowers a fixed fee instead of interest. The fee is based on how much you borrow, your agreed-upon repayment percentage and your PayPal sales history. The company doesn’t share fee ranges, but it does say that the higher the repayment percentage, the lower the fee. PayPal doesn’t charge any other fees or prepayment penalties.

Caution: While you can skip making payments during the months you have no PayPal sales, PayPal requires that you pay at least 5-10% (depending on your loan agreement) of your loan every 90 days. That means if your PayPal sales are down for an extended time, you’ll have to remit funds from another source to keep your loan current.

Note: PayPal has received many online complaints regarding its products and services, some of which are about the working capital loan product. So, while we endorse the PayPal Working Capital loan as the best option for those needing flexible payments, we encourage you to do your due diligence before borrowing.

  • Only $50,000 in annual revenue is required
  • Lower minimum credit score than some other loans we reviewed (620)
  • APR starting at 9.99%
  • No origination fee or prepayment penalty
  • APR can be as high as 34%
  • Loan product not available in Alaska
  • Many online complaints about the company


Term Length
6 to 18 months
Loan Amount
Up to $150,000
Minimum Credit Score
Required Time in Business
6+ months of QuickBooks activity

Why we chose this company: QuickBooks Capital is well-suited for small business owners because borrowers only need to make $50,000 in annual revenue to satisfy the lender’s income requirements.

Other QuickBooks Capital requirements include:

  • 6+ months of bookkeeping transactions on a QuickBooks accounting platform
  • A minimum credit score of 620
  • No bankruptcies in the last two years
  • No outstanding QuickBooks Capital loans

The application process is online and reviews your personal and business credit as well as your financial reports within QuickBooks. If approved, you can get funds within two business days.

Qualified borrowers can take out up to an 18-month term loan for as much as $150,000 through Intuit Financing Inc. Your interest rate will range from 9.99-34%, depending on your creditworthiness and other factors. QuickBooks Capital doesn’t charge an origination fee.

Loan payments get auto-debited from your business bank account weekly or monthly, and there are no penalties if you repay the loan early.

Note: QuickBooks also has several customer complaints online. However, we stand by the QuickBooks Capital loan as a potential fit for your small business.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer

A Small Business Loan can help you reach your financial goals

Pushing your business forward requires a lot of effort. Get the help you need with a loan. Click below to see your options.

Get Started

Other companies we considered


  • Term loans of up to $250K
  • Relatively low minimum credit score required (625)
  • Same-day funding is possible
  • Loan term of up to 24 months
  • Required annual revenue is high at $100K
  • APR starting at 29.99%
  • May have to pay an origination fee, monthly maintenance fee and prepayment penalty
  • Loan product not available in Nevada, South Dakota or North Dakota

Why we didn’t choose this company: While OnDeck offers fast funding, the company charges a high APR. Plus, borrowers may have to pay other expensive fees depending on their loan agreement.

Small Business Administration (SBA)

  • Loan term of up to 120 months
  • Loan amount up to $5 million
  • The SBA is a trusted resource in the business community
  • Lengthy and complex loan process
  • Complicated and potentially expensive fee structure
  • Collateral required for loans over $350K

Why we didn’t choose this company: The Small Business Administration working capital loan can be an excellent solution for companies that need to borrow large sums and take several years to repay the debt. However, the loan application process is lengthy and complicated. Plus, the fee structure is complex and potentially expensive, depending on the lender.

BHG Financial

  • Loan terms of 3 to 12 years
  • Loan amounts of up to $500K
  • Personal collateral is not required
  • APR starting at 8.49%
  • Assistance available by phone 7 days a week
  • Loan eligibility requirements aren’t published on the lender’s website
  • Customer service didn’t provide the requested information when contacted
  • A prepayment penalty may be assessed
  • Slower application and funding process than other lenders we reviewed

Why we didn’t choose this company: BHG Financial has a solid reputation in the financial industry. However, the company’s application and funding processes are slower than other lenders we reviewed, and its website lacks important information about the working capital loan product. Plus, you may be subject to a prepayment penalty for paying off your loan early.


  • Online marketplace gives you access to 75+ lending partners
  • Loan amounts of up to $5 million
  • Funding within 24 hours of approval is possible
  • Interest rates starting at 3%
  • Federal Trade Commission sanction
  • Interest rate can be as high as 60%

Why we didn’t choose this company: Lendio can be a good solution if you’d like to compare multiple business financing options in one place. However, loans from the marketplace could come with an interest rate as high as 60%, which is significantly higher than business credit cards. Plus, in 2020, the Federal Trade Commission ordered Lendio to stop making potentially misleading claims about coronavirus relief available to business owners.


  • Loan amounts of up to $400K
  • Low minimum credit score required (600)
  • Fast application process with same-day funding possible
  • Required monthly revenue is high at $15K
  • High APR when converted from a factor rate
  • 2.5% origination fee

Why we didn’t choose this company: We liked Credibly’s low minimum credit score requirement and fast application process. However, the lender charges a high APR (when converted from a factor rate) and a 2.5% origination fee. Plus, your business must make at least $15,000 per month to qualify for a loan.

Working Capital Loans Guide

The following guide contains everything you need to know when shopping around for a working capital loan, including the different types of loans available and how they work.

Main things to know before choosing a working capital loan

The first thing you need to know before choosing a working capital loan is how much working capital you need.

Working capital refers to funds and assets available to your business for day-to-day operations. You have working capital if you own (current assets) more than you owe (current liabilities).

To determine your working capital needs, review all of your monthly business expenses. These could include:

  • Rent
  • Payroll
  • Supplies
  • Services
  • Minimum debt payments

Then, calculate your potential shortfall per month, multiply it by the number of months until your next busy season starts, and add a buffer in case you underestimated your costs. That figure is your target loan amount.

Once you’ve determined how much working capital you need, you should learn some key facts about working capital loans.

Leslie Tayne, debt attorney and founding and managing director of Tayne Law Group, says that working capital loans can be easier to qualify for than traditional business loans. That’s because the alternative online lenders that offer them generally have less stringent eligibility requirements.

That said, unlike other types of small business financing, working capital loans are tied to your personal credit. This means that missing payments or defaulting can seriously impact your credit score and your ability to borrow money in the future. Additionally, interest rates tend to be high to compensate for the higher risk.

“If your credit is in good shape, you may be able to get an unsecured working capital loan, meaning no collateral is required to get approved,” says Tayne. “If you don’t have good credit, however, you may need to secure the loan with an asset, which can be repossessed if you default.”

What are the types of working capital loans?

Working capital loans are typically short-term loans or revolving lines of credit. With a short-term loan, you’ll borrow a lump sum and repay it over a set period — usually weeks or months. With a working capital line of credit, you’ll have a credit limit you can borrow against. You’ll only have to repay what you borrow, and each draw from the line will be considered a separate loan.

Invoice financing, invoice factoring or merchant cash advances can also be considered forms of working capital loans. With invoice financing, a lender gives you a loan based on the value of your unpaid invoices (accounts receivable). You’ll then repay the lender as your customers settle their invoices with your company. With invoice factoring, you’ll sell your outstanding invoices to a company for less than face value. That company will then collect the full amount due from your customers.

With a merchant cash advance (MCA), you’ll receive an advance on your future sales. You’ll then repay the debt with a percentage of your daily credit card sales via auto debit. However, short-term loans or lines of credit are generally safer than MCAs. This is because they’re legally considered loans and state laws prevent lenders from charging predatory rates for them.

How do working capital loans work?

Working capital loans help you make ends meet during your business’ slow periods. You borrow enough money to cover your day-to-day operating expenses until your next busy season. Then, once your cash flow improves, you can strive to pay off the debt before your next offseason hits.

While some lenders will consider your business’ credit standing during the loan application process, many will also require a personal guarantee. That means if your company defaults on the loan, you must use personal assets to repay the debt.

What are the requirements to qualify for a working capital loan?

Working capital loan requirements vary by lender. You generally have to meet a minimum credit score requirement, so lenders may check your personal credit score and credit history in addition to your business credit report and rating.

Besides your credit history and score, lenders will also review your annual revenue and time in business.

Pro Tip: Check your credit score before applying for your working capital loan.

Is a working capital loan a good choice for business growth?

According to debt attorney Leslie Tayne, working capital loans are not ideal for business expansion. These products should instead be used to cover operational costs — including expenses like rent, payroll, utilities and debt payments — during seasonal slumps.

If you want to acquire another company, obtain equipment financing, purchase real estate or open a new location, your best bet is to pursue other long-term small business loans. That way, you have more time to pay off your debt and may qualify for more favorable terms.
If you have the time and patience to complete the process, SBA loans could meet your needs.

When is the right time to apply for a working capital loan?

Debt attorney Leslie Tayne suggests the best time to apply for a working capital loan will depend on your business’ operating cycle. Understanding when financing shortages tend to happen can help you secure a working capital loan before you’re stretched thin and give you a clearer picture of how long it may take you to repay the loan.

While many online lenders process loan applications and disburse funds faster than traditional banks (like credit unions), it may still take some time for the money you need to hit your bank account. That means you shouldn’t wait until you run out of cash or fall behind on your bills to act.

How much can I borrow on a working capital loan?

Working capital loan amounts vary from lender to lender. We reviewed financial institutions offering maximum loan amounts ranging from $100,000 to $5,000,000.

Of course, the amount you can borrow will be based on your creditworthiness, business revenue and other factors. And since working capital loans are meant to cover short-term gaps in cash flow, loan amounts tend to be as small as 10% of a business’ annual revenue.

How is the application process for a working capital loan?

The application process for a working capital loan will differ from bank to bank. However, many online lenders (such as those we’ve reviewed here) have streamlined the experience.

You may be able to apply for your loan entirely online by filling out a form. Required information generally includes:

  • Time in business
  • Desired loan amount
  • What the loan will be used for
  • The company’s monthly or annual revenue
  • You may also need to consent to a credit check and submit supporting documentation to back up the answers you give in your application. These may include bank statements, financial statements and tax returns.

    How We Chose the Best Working Capital Loans

    When choosing the best working capital loans, we considered factors like:

    • Borrower needs: We favored lenders that met a particular borrower need, such as having a flexible payment arrangement or a low credit score requirement.
    • Application and funding process: We favored lenders that made the loan application and funding process fast and simple.
    • Lender reputation: We evaluated each lender’s reputation by sifting through customer reviews and researching the company’s standing with regulatory authorities.

    We disqualified one of the companies we reviewed from our top list based on its reputation. Other lenders that received customer complaints made the cut because their working capital loan product is still a good option for some businesses.

    During our research into the best funding options, we also consulted these expert sources:

    Summary of the Best Working Capital Loans of 2023

    Leave a Comment