Steps to Apply:
1
Quick Application:
Complete our simple online form and receive swift approvals.
2
Explore Choices:
Compare various options to find the ideal solution for your needs.
3
Personalize Your Terms:
​Choose the options that best suit your business objectives.
4
Get Funding:
Access funds within a few business days for most programs.
Get the Best Small Business Loan for Working Capital Loans
At Merchant Pro Funding, we focus on providing the best working capital financing options. Our tailored solutions offer quick access to funds with flexible terms, helping your business maintain smooth operations and grow without interruptions.
Tailored Business Loans for
Revenue-Based Working Capital
Most small business owners need extra working capital at some point, regardless of their financial health. Unforeseen circumstances such as bad weather, shifts in demand, or unexpected operational setbacks can cause revenue shortages. To address such temporary cash flow challenges, Working Capital Loans provide an ideal solution. Unlike loans designed for long-term investments or significant capital expenditures, working capital loans offer the flexibility to cover short-term operational needs or take advantage of immediate opportunities.
In this guide, we will answer the following questions and more:
What Are Working Capital Loans?
Working capital loans** are financing products that provide businesses with the cash needed to cover day-to-day operational expenses, such as payroll, rent, and utilities. These loans can take several forms, including:
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Short-term working capital loans
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Merchant cash advances
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Invoice factoring agreements
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SBA loans
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Business lines of credit
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Working capital loans aim to fill gaps in cash flow, ensuring businesses can meet their operational needs without disruptions. They are not typically used for significant long-term investments but rather to manage immediate expenses or seasonal fluctuations in revenue.
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Why You Need Working Capital for Your Business Cash Flow:
In a perfect scenario, businesses use their incoming revenue to cover operational expenses. However, real-world challenges such as seasonal trends, unexpected expenses, or growth opportunities often disrupt cash flow. Working capital loans provide the liquidity needed to maintain smooth operations during such periods.
Max Funding Amount:
$1K – $5M
Factor Rates:
Starting at Prime + 2.75%
Term:
3 months – 10 years
Speed:
1-3 Business days
Working capital loans differ from traditional loans in several ways:
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Flexible Eligibility Requirements: Businesses with subpar credit or less than one year in operation may still qualify.
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Shorter Terms: Loan terms range from a few months to several years, depending on the product.
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Diverse Use Cases: Borrowers are not required to specify how the funds will be used, offering flexibility.
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Higher Interest Rates: To offset risk, these loans may carry higher rates than traditional products. Additionally, borrowing amounts are determined based on your business's monthly expenses and short-term liabilities, ensuring you can cover immediate operational needs.
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Additionally, borrowing amounts are determined based on your business's monthly expenses and short-term liabilities, ensuring you can cover immediate operational needs.
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Research, Facts & Reports:
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54% of small businesses in 2022 reported financial challenges related to difficulties in covering operating expenses. (Source: Small Business Credit Survey, 2022)
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The small business financing market is estimated at $1.4 trillion. (Source: Federal Reserve Survey)
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In 2023, the SBA approved 53,700 SBA 7(a) loans totaling $27.5 billion, many of which addressed working capital needs. (Source: SBA Annual Report)
How Do Small Business Working Capital Loans Work?
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Quick Access to Funds: Approvals can happen in as little as 24 hours.
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Flexible Requirements: No collateral or excellent credit scores are needed for approval.
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Versatile Usage: Funds can be used for various purposes, from payroll to inventory purchases.
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Customizable Repayment Structures: Choose repayment plans that best align with your cash flow.
What Are The Advantages of Working Capital Loans?
What Are The Disadvantages of Working Capital Loans?
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Higher Interest Rates: To account for the risk of lending to businesses with less-than-ideal credit or operational history.
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Lower Borrowing Limits: Working capital loans generally provide less funding than long-term loans like SBA or term loans.
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Short-Term Nature: Best suited for temporary challenges, not long-term investments.
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Potential Collateral Requirements: Depending on the lender and loan type, collateral may be required.
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Business Term Loans Compared To Other Product
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Loan Types
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Max Amounts
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Rates
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Speed​
Merchant Cash
Advances
$7.5K - $1M
​Starting at 1-6% p/mo
1-2 business days
Receivables/Invoice Financing
$10K - $10M
Starting at 1% p/mo
1-2 week
SBA Loan
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$50K - $5.5M
Starting at Prime + 2.75%
8-12 weeks
Equipment
Financing
Up to $5M per piece Starting at 3.5% (SBA)
3-10+ business days
Business
Term Loan:
$10K - $5M
Starting at 1-4% p/mo
1-3 business days
Revenue-Based Business Loans
$10K - $5M
Starting at 1-6% p/mo
1-2 business days
Business
Line of Credit
$1K - $250K
Starting at 1% p/mo
1-3 business days
Approved businesses generally meet the following criteria:
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Annual Revenue: Over $180K
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Credit Score: 550+
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Time in Business: Over 2 years
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Who Qualifies For
Working Capital Loans?
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Step 1: Choose Your Loan Type:
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Consider your business's cash flow and repayment capabilities.
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Step 2: Gather Your Documents:
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Voided business check
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Last 3 months of bank statements
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Driver's license
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Step 3: Complete the Application:
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Apply online or by phone, providing the necessary information.
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Step 4: Discuss Terms with a Representative:
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Review repayment plans, interest rates, and any associated fees.
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Step 5: Receive Approval:
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Funds are typically disbursed within 1-3 business days after approval.
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How To Apply For
Working Capital Loans:
If declined, consider these options:
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Alternative Financing Tools: Business credit cards or personal loans may be more accessible.
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Credit Repair Services: Address issues affecting your credit score to improve eligibility.
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Explore Credit Unions: Often easier to qualify for and offer favorable terms.
What If I'm Declined For a
Working Capital Loan?
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