Colleges, hospitals, manufacturing facilities, power plants, retail shops, and even the local hot dog stand all have one thing in common: they rely on working capital. If a business falls short on working capital, it could be in trouble, unable to meet its current expenses. That’s why it’s vital to keep your business’s working capital at the right level.

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If your business is low on working capital, there are ways to give it a boost. Working capital loans let you bring in what you need when you’re faced with a shortfall or want extra cash for a new initiative. Since working capital loans are flexible, you can apply the funds to any expense you need to cover.

Most working capital loans are short-term, meant to help you address current financial needs. To estimate how much working capital your business needs, divide your current assets by your current liabilities. A resulting ratio of 1 – 2 is good for most businesses. Less than one means you could be headed for financial difficulties. A ratio of 2 and above indicates you should be reinvesting money into growth opportunities.


  • A wide variety of options are available.
  • You don’t need a high credit score to qualify.
  • Helps you cover short-term needs quickly.
  • Use for any business expense.

Working capital loans are meant to cover expenses in the short term. If you need a loan term of seven years or more, consider a term loan, SBA loan, or traditional bank loan. Work with your broker to explore other long-term solutions that fit your individual business needs. 

Since working capital loans can come from several different sources, you have a wide selection of borrowing options. SBA loans can be easier to get for businesses with credit problems. Private lenders tend to be more flexible than traditional banks. To find out which lender is right for you, get in touch with one of our professional brokers. 

Startups can sometimes have difficulty finding funding, especially from traditional banks. However, secured forms of financing, like a working capital line of credit, use company assets to secure the loan. This puts less pressure on companies to have a high credit score or a long history in business. 

The application process for a working capital loan depends a lot on the lender you choose. Bank and government loans often have a rigorous process that can take a few weeks or more to be approved. Hard money loans and lines of credit can be much faster, and approved in a matter of days. However, rates are typically higher for these loans. Talk to a qualified broker today to discover your options.