Start with the problem
Most funding mistakes come from choosing a product before defining the need. A one-time equipment purchase and a recurring seasonal gap are different problems, and the same product will not suit both.
The three, side by side
| Working capital | Line of credit | Term loan | |
|---|---|---|---|
| How money arrives | One lump sum | Drawn as needed up to a limit | One lump sum |
| Best for | Timing gaps, stock, a quick opportunity | Ongoing, unpredictable small needs | A large planned investment |
| Repayment | Set by the offer | Pay on what you use | Fixed schedule over a set term |
| Speed | Often fastest | Varies | Often slowest |
| Paperwork | Often lighter | Varies | Often heavier |
These are general descriptions; individual offers vary, so always read the actual terms.
Matching examples, for illustration
The retailer with a seasonal gap
Needs $40,000 of stock in October that sells in November and December. Working capital fits: a defined need, a defined window.
The contractor with uneven jobs
Needs small amounts at unpredictable times for materials. A line of credit fits better, because you draw only what each job requires.
The clinic buying imaging equipment
Needs a large fixed amount for an asset with a long life. A term loan can fit, since a longer repayment horizon matches a longer-lived asset.
What we offer
Our focus is working-capital funding from $25,000 to $5,000,000, with funding in as little as 24 hours. We consider FICO 500 and above, ask for about three months of business bank statements and require no tax returns. The application takes about five minutes with a soft credit pull, and sole proprietors can apply.
We do not claim working capital is right for every situation. If you need small, flexible, recurring access, or a long repayment horizon for a very large asset, compare those products too, including what a bank or credit union may offer.
A short decision guide
- Is the need one-time or recurring? Recurring suggests a line of credit.
- Is the asset long-lived and the purchase large? Consider a term loan.
- Do you need money quickly to cover a timing gap or seize an opportunity? Working capital is built for that.
- Can you carry the payments in your slowest month? If not, shrink the amount, whichever product you choose.
If working capital fits, you can apply here.
Cost, in plain terms
Do not compare these products by name alone. A flexible product with a high total cost can be worse than a rigid one with a lower cost, and the reverse is also true. Ask each provider for total dollars repaid, fees, payment dates and any charge for early repayment, then put them into one table, as in our guide to comparing offers. The product that fits your cash flow and costs the least in total is the right one.