The top 5 working capital loans for small businesses.

A lump-sum payment is the way a working capital loan is typically provided to small businesses for financing daily operational expenses, such as rent, utilities, payroll, and inventory. Unlike traditional business loans, these loans are usually short-term and need to be repaid in less than two years. They serve a similar purpose to business lines of credit, but instead of receiving a revolving line of credit, your business receives funds in a single payment.

CNBC Select identified the top working capital loans that provide fast funding and address diverse requirements. (For more details on our selection process, please refer to our methodology.)

Best for lower credit scores

This is for those with lower credit scores. Credibly accepts applicants with credit scores as low as 500. Other eligibility requirements include being in business for at least six months, which is fairly standard, and having an average monthly revenue of at least $15,000.

If approved, you can receive the funds as quickly as the same business day. Prospective borrowers can pre-qualify without hurting their credit score and get approved in less than four hours.

Best for fast funding

This is for those who require funding urgently. OnDeck offers an easy application process that can be completed in minutes, and funds can be deposited into your bank account the same day, depending on your state and loan amount.

OnDeck offers a low minimum credit score requirement of 625, pre-qualification without hard credit pulls, and limited-time cash-back bonuses for new borrowers who are approved for a loan product and accept funding.

Best for PayPal users

This PayPal Working Capital Loan is designed for existing PayPal Business or Premier customers, as eligibility is based on your business's PayPal sales history. Since PayPal does not perform a credit check for approval, this can be a suitable option for business owners with low credit scores.

Flat fees and no additional fees are some of the standout benefits of loans.

Best for unsecured loans

National Funding offers working capital loans without requiring collateral. Instead, borrowers can provide a personal guarantee, which is a document that they sign stating they will repay the loan if their business defaults on the balance.

Borrowers who meet certain criteria can receive up to $500,000 in funding, which is significantly more than what many other lenders provide.

Best for larger loan amounts

Who is this for? Fora Financial provides eligible borrowers with funding ranging from $5,000 to $1.5 million, which is significantly more than many other lenders offer. Additionally, it only requires a minimum credit score of 500 and does not perform any hard credit inquiries, making it an attractive option for those with poor credit.

Borrowers can save money with prepayment discounts while applying for additional funding that pays off at least 60% of the original loan amount.

Credibly

Credibly is a fintech lending platform that specializes in short-term loans for small and medium-sized businesses. It offers working capital loans of up to $400,000 with repayment term lengths ranging from three months to 15 months.

Credibly offers a range of financing options, including merchant cash advances, business lines of credit, long-term loans, equipment financing, SBA loans, and invoice factoring. Its loans can be used across over 300 industries, including consulting, landscaping, gas stations, food and service, healthcare, hospitality, and more.

Loan amounts

$5,000 to $400,000

Loan terms

3 to 15 months

Eligibility requirements

To qualify for a business loan, you must have at least six months of experience in business, a credit score of over 500, and an average monthly revenue of $15,000 or more.

OnDeck

OnDeck is a highly rated online lender that boasts a straightforward application process and prompt funding times. They offer term loans ranging from $5,000 to $250,000 with repayment periods of 12 to 24 months. Additionally, OnDeck provides revolving business lines of credit as an alternative lending option. Over 700 different industries can access funding through this lender.

Loan amounts

$5,000 to $250,000

Loan terms

12, 18 or 24 months

Eligibility requirements

A business with at least one year of experience, a 625 personal FICO score, $100,000 in annual revenue, and a business checking account.

PayPal

PayPal offers working capital loans to eligible customers with at least $20,000 in annual PayPal sales or $15,000 in annual PayPal Business sales. First-time borrowers can apply for $1,000 to $150,000 in funding, while repeat borrowers can get as much as $250,000. However, eligible borrowers must not have an outstanding balance on an existing PayPal working capital loan.

PayPal states that borrowers will receive their funding promptly after approval. Borrowers must repay at least 5% or 10% of their total loan amount plus the fixed fee every 90 days until the loan is fully paid off. These payments are automatically deducted from your business's PayPal account as a portion of your sales, and you can still make additional payments without incurring any prepayment penalties.

Loan amounts

$1,000 to $250,000

Loan terms

Borrowers pay a portion of their sales until the loan is fully repaid.

Eligibility requirements

Must have a PayPal business or Premier account for at least 90 days

National Funding

National Funding offers a range of loans for businesses in various industries, including beauty and wellness, agriculture, and restaurants. This lender has provided over $4.5 billion in funding and has an A+ rating from the BBB.

Loan amounts

Up to $500,000

Loan terms

Up to 5 years, depending on the loan type

Eligibility requirements

The business must operate for at least six months and generate at least $250,000 in annual sales.

Fora Financial

In addition to standard term loans, Fora Financial offers a revenue advance option, which is essentially a merchant cash advance, where loan payments are a percentage of your sales.

A Capital Specialist will contact a prospective borrower to discuss the details of their loan request, as funding can be used to cover almost any business expense across various industries, including retail, medical, construction, and restaurants.

Loan amounts

$5,000 to $1.5 million

Loan terms

Up to 15 months

Eligibility requirements

To be eligible for a loan, a business must have been in operation for at least six months, generate monthly revenue of at least $15,000, and have no open bankruptcies.

Bottom line

Working capital loans can assist small business owners in managing temporary cash flow shortages. Several top lenders offer quick approvals and prompt funding. However, it is crucial to compare offers from multiple lenders before making a decision. Ensure you comprehend the terms you are committing to, including the repayment duration, interest rates, and any fees that may apply.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each small business loan review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of loan products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties. To learn more about our methodology and how we select the best working capital loans, please refer to our website.

Our methodology

We analyzed various U.S. loans from both online and brick-and-mortar lenders to determine the best working capital loans. We focused on traditional loans, including term loans, equipment loans, commercial real estate loans, microloans, and franchise loans. In this roundup, we did not evaluate business lines of credit, invoice factoring/financing, or merchant cash advances since they have a lengthy application process or operate differently than traditional term loans, which provide a lump sum that is repaid over a fixed period.

We compared each small business loan on a range of features, including:

Minimum and maximum loan amounts
Length of term
Credit score needed
Application requirements
Streamlined application process
Fund disbursement
Customer support
Better Business Bureau rating
Customer reviews, when available

The interest rate and monthly payment for small business loans can vary and may change without notice, but once you accept your loan agreement, a fixed-rate APR will ensure consistency throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness.

To secure a small business loan, lenders typically require a hard credit check and a comprehensive application, which may necessitate providing personal and business proof of income, identity verification, and address, among other documents. Additionally, you may be asked to provide collateral, such as business equipment, real estate, or personal assets.

Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.