Estimate daily, weekly, or monthly remittances and the true total cost of short-term working capital financing. Built to mirror how non-bank working-capital lenders structure offers in 2026.
Frequently Asked Questions
What is a working capital loan?
Short-term financing used to cover operating expenses — payroll, inventory, rent — rather than long-term assets. Terms typically run 3–24 months.
How are working capital loans repaid?
Most short-term working capital loans use fixed daily or weekly ACH remittances rather than monthly payments, to match short-cycle revenue.
What is a typical APR for a working capital loan?
Short-term working capital APRs typically run 20–60% in 2026, reflecting fast funding, less paperwork, and shorter terms than bank loans.
How fast can I get a working capital loan?
1–3 business days from a non-bank lender. Bank-issued working capital lines take 2–6 weeks.
What credit score do I need?
Non-bank working capital lenders work with 550+ FICO. Bank lines of credit typically require 680+. Revenue and time in business matter as much as score.
Are payments tax deductible?
Interest is deductible as a business expense; principal is not. Confirm with your tax advisor.
Can I pay off a working capital loan early?
Yes — most allow early payoff. Some charge prepayment fees, others offer interest discounts for early payoff. Read the agreement carefully.
Do I need collateral?
Most short-term working capital loans are unsecured but require a personal guaranty and a UCC-1 filing on business assets.
How much working capital can I qualify for?
Typically 8–15% of trailing 12-month revenue, capped by debt-service coverage. Use the borrowing capacity calculator for a rough estimate.
What's the difference between a working capital loan and a line of credit?
A loan funds a lump sum with a fixed repayment schedule. A line of credit lets you draw, repay, and re-draw up to a limit, paying interest only on the drawn balance.