Working Capital Loans
for Small Business

What Is a Working Capital Loan?

A working capital loan is short-term business financing designed to fund your day-to-day operations rather than long-term investments. Think of it as a financial bridge — it keeps your business running smoothly when cash is tied up in outstanding receivables, seasonal inventory builds, payroll obligations, or unexpected expenses.

Unlike a mortgage or equipment loan that funds a specific asset, working capital is liquid. You can deploy it wherever your business needs it most: paying suppliers early to capture discounts, covering a payroll cycle while waiting on a large invoice to clear, stocking up inventory before a peak season, or handling an emergency repair that can't wait.

At LoanHub, working capital loans are funded directly — no brokers, no middlemen, no back-and-forth between multiple lenders. You apply once, get a decision fast, and if approved, money hits your account in as little as 24 hours.

Who Needs Working Capital Financing?

Almost every small business runs into cash flow timing mismatches. Common situations where working capital loans provide real value include:

• Seasonal businesses that need inventory or staffing ramp-up capital before revenue materializes — think landscapers, HVAC companies, or retail shops before the holiday season.
• Businesses with long payment cycles where customers pay on net-30 or net-60 terms, leaving you fronting costs for weeks or months.
• Growing businesses that are winning more contracts than their current cash flow can service, requiring a capital injection to execute new work.
• Businesses facing unexpected expenses — equipment breakdowns, surprise regulatory costs, or rapid headcount growth — where waiting for organic cash flow isn't an option.
• Businesses pursuing a time-sensitive opportunity like a bulk inventory purchase at a discount, a new location, or a large client contract requiring upfront investment.

Working capital loans are also a smart tool for businesses that don't want to drain their cash reserves. Preserving liquidity gives you flexibility; a working capital loan lets you fund operations without running the business on fumes.

How Working Capital Loans Work at LoanHub

The LoanHub process is designed to be fast and transparent. Here is what you can expect from start to funded:

Loan Amounts, Terms, and Rates

LoanHub working capital loans are built for flexibility. There is no one-size-fits-all offer — your terms are structured based on your specific business profile.

Repayment is structured as a fixed daily or weekly amount debited from your business bank account. This predictability makes budgeting simple — you always know exactly what's coming out and when. Unlike a revolving line of credit, working capital loans have a defined payoff date, which many business owners prefer for planning purposes.

Factor rates vary based on your revenue consistency, time in business, industry, and the overall strength of your file. LoanHub's underwriting team works to find you the most competitive offer your profile supports.

Qualification Requirements

LoanHub works with businesses across the credit and revenue spectrum. Our minimum requirements for a working capital loan are straightforward:

• Time in business: 6+ months of business operating history
• Monthly revenue: At least $10,000 per month in gross revenue
• Business bank account: An active business checking account in the company's name
• U.S. business: Must be a U.S.-based business entity (LLC, Corporation, Sole Proprietor, or Partnership)
• Credit score: We work with all credit profiles — minimum 500 FICO considered

The most important factor in our underwriting is your business's actual cash flow, not your personal credit history. If your business deposits are strong and consistent, you may qualify even with credit challenges that would disqualify you at a traditional bank.

Industries We Serve

LoanHub provides working capital loans to businesses across virtually every industry. Some of the most common sectors we fund include:

• Construction and contracting — Cover materials, subcontractors, and labor between project milestones
• Restaurants and food service — Manage food costs, staff payroll, and equipment repairs
• Transportation and logistics — Fund fuel, maintenance, and fleet operating costs
• Retail and e-commerce — Build inventory ahead of peak seasons or promotional campaigns
• Healthcare and medical practices — Bridge gaps between insurance reimbursements
• Manufacturing and wholesale — Purchase raw materials and manage production cycles
• Professional services — Law firms, accounting practices, marketing agencies managing project overhead
• Auto dealers and repair shops — Parts inventory, equipment, and operational expenses

If your industry isn't listed above, it doesn't mean you can't qualify. Contact our team or start an application to find out what you may be eligible for.

Working Capital vs. Other Financing Options

It's worth understanding how working capital loans compare to other common small business financing products:

Working capital loans vs. business lines of credit: A working capital loan gives you a lump sum upfront with a fixed payoff schedule. A business line of credit is revolving — you draw funds as needed and only pay interest on what you use. Working capital loans are better when you know exactly how much you need; lines of credit are better for ongoing, unpredictable needs.

Working capital loans vs. business term loans: Business term loans typically carry longer repayment periods (1–5 years) and are used for larger planned investments. Working capital loans are shorter-term and faster to fund — better for immediate operational needs.

Working capital loans vs. equipment financing: Equipment financing is asset-secured and tied to a specific purchase. Working capital is unrestricted — you can use it for anything your business needs.

Frequently Asked Questions