What is working capital financing?
Working capital financing gives your business a lump sum of cash to cover everyday operating needs — payroll, inventory, rent, marketing, or a seasonal slowdown — and is repaid over a short term, often through fixed daily or weekly payments.
It's one of the fastest and most accessible ways to fund a business (sometimes called a merchant cash advance). Approvals lean on your recent revenue rather than just your credit score, so it's a fit for businesses that need cash quickly and may not qualify for a traditional bank loan.
How much working capital do you need?
Start with the gap you need to cover: the expenses due before the related revenue arrives, such as payroll before a large invoice is paid or inventory before a busy season. Add a cushion for the payments on the funding itself.
Lenders usually size working capital as a portion of your average monthly revenue, from $5,000 up to $500,000. Borrowing only what covers the gap keeps the total cost down, because the cost applies to the whole amount advanced.
How it works
- You receive a lump sum upfront based on your average monthly revenue.
- Repayment is a fixed amount collected daily or weekly, or a small percentage of daily sales.
- Because the cost is a flat factor rate (not compounding interest), you know the total payback on day one.
- Many businesses renew or refinance once a portion is paid down.
What it costs
Working capital is usually priced with a factor rate instead of an interest rate. You repay the amount advanced multiplied by the factor (for example, a 1.25 factor on $40,000 means $50,000 in total) through fixed daily or weekly payments over 3 to 18 months.
Because the term is short, a factor rate works out to a higher APR than it looks. Convert any offer with the factor rate to APR calculator before you compare it with a loan, and ask whether paying early lowers the total.
Rates, amounts and terms on this page are typical ranges, not offers or guarantees. Your terms depend on your business and the lender that makes the offer. Cashifi is not a lender and does not make credit decisions.
Best for
- Covering payroll or rent during a slow month
- Buying inventory ahead of a busy season
- Bridging a gap while you wait on receivables
- Funding a time-sensitive opportunity
Pros and considerations
Pros
- + Fastest funding option — often same day to 48 hours
- + Light documentation (typically just bank statements)
- + Credit-friendly — revenue matters more than FICO
- + Fixed total cost known upfront
Considerations
- – Higher cost than longer-term bank products
- – Frequent (daily/weekly) payments affect cash flow
- – Best for short-term needs, not long-term investments
Do you qualify?
- 3+ months in business
- ~$5,000+ in monthly revenue
- An active business bank account
- No minimum credit score for many programs
Typically you'll provide: 3 months of business bank statements, A voided business check.
How to apply
- 1Complete one application online — about four minutes, with a soft credit check that won't affect your score.
- 2Upload your recent business bank statements so lenders can see your revenue and cash flow.
- 3Compare the offers that come back, ranked by total cost, and choose the one that fits. There is no obligation.
Frequently asked questions
How fast can I get working capital?
Many businesses are approved the same day and funded within 24–48 hours after submitting 3 months of bank statements.
Is working capital the same as a merchant cash advance?
They're closely related. A merchant cash advance advances cash against future sales; modern working-capital products work the same way with fixed daily or weekly payments. Cashifi presents these as working capital.
Do I need good credit?
No. Many working-capital programs have no minimum credit score and base approval on your recent business revenue and bank activity.
How much can I qualify for?
Typically a portion of your average monthly revenue, ranging from $5,000 up to $500,000 depending on your deposits and history.