Unsecured Working Capital Loans
Easy working capital financing for small businesses. No hard credit checks. Get up to $850,000 approved in as little as 24 hours.
Poor Credit Accepted
No Collateral Required
Minimal Paperwork
Unsecured Working Capital Funding For Small Businesses Across The USA
Are you struggling with an unexpected business expense or a slow season that’s impacting your working capital? Don’t let it put your business at risk. Business Finance Source™ offers working capital loans to help you get back on track. Don’t let a temporary setback jeopardize the future of your business. Get the financial support you need with a working capital loan from Business Finance Source.
How To Get A Working Capital Loan From Business Finance Source™
Loan Application Process
1
Apply Online
Our platform evaluates your loan application and gives you an initial decision in 60 seconds.
2
Upload Bank Statements
Once you’re pre-approved, upload the last 3 months of your bank statements to get final approval.
3
Get Funded
After final loan approval, get the funds deposited into your bank account in as little as 24 hours.
Eligibility Requirements
At Business Source, you must meet the following minimum requirements to qualify for working capital financing:
1. Be in business for 6 months or more
2. Provide 3 Months Bank Statements
3. Have an active Business Bank Account
4. Business must make +$7,500 per month
Who can apply?
You can apply for finance with Business Finance Source if you’re a US citizen or resident over the age of 18 years of age.
Working Capital Financing Explained
What Is It?
Business owners often find themselves in need of working capital loans to cover gaps in their monthly cash flow, which can occur due to a lack of funds for everyday expenses like payroll, rent, and operational costs.
A working capital loan is a type of financing that helps businesses meet their financial obligations by providing a source of funding to cover day-to-day costs. The funds borrowed can be used to bridge gaps in cash flow and ensure that the business has sufficient capital on hand to meet its expenses.
How Does It Work?
- The business owner applies for working capital financing and shares some basic business information with the lender.
- The lender evaluates the business’s credit history and overall financial health before deciding whether to approve the working capital loan.
- Once the loan is approved, the business uses the financing to cover short-term expenses such as operating costs, such as payroll, and inventory.
- The business is expected to repay the loan, along with any interest and fees, over a predetermined period of time.
Interest Rates
The interest rate for a working capital loan in the USA varies based on a business’s credit score, the financial health of the business, and the level of risk the lender will be taking on. Traditional lenders like banks in the USA charge interest rates ranging from 10% to 20%. Online lenders in the USA may charge rates ranging from 10% to 99%.
Repayment Terms
Repayment Period: Working capital loans are typically a type of short-term financing, so lenders expect repayment within a 6 to 12 month period.
Repayment Frequency: Lenders require weekly or monthly repayments of a working capital loan.
Repayment Amount: Most lenders require the payment of the loan principal plus all of the interest.
Working Capital Calculator
This calculator helps you estimate the cost of taking out a working capital loan.
Learn about all the business loan calculators we have to offer.
What Can It Be Used For?
A working capital loan can be used for a variety of purposes, including:
- Refinancing debt
- Purchasing new equipment
- Financing inventory
- Covering marketing expenses
- Managing short-term cashflow shortages
- Expanding into new markets
- Paying rent or lease payments
- Paying payroll expenses
- Covering unexpected expenses
Benefits And Drawbacks
Benefits
- Can help businesses quickly address a drop in working capital.
- Repayment terms may be longer than those for a line of credit.
- Business owners do not need to specify to the lender how the funds will be used.
Drawbacks
- Qualification may be difficult for businesses with poor credit, limited financial history, or insufficient cash flow.
- Interest rates may be higher for unsecured working capital loans.
- Repayment terms may be shorter compared to other forms of financing.
FAQs
Taking out a working capital loan will not affect your credit score. Defaulting on a working capital loan could have negative consequences for your credit score. If the business fails to make the required payments on time, this could result in late payments being reported to the credit bureau, which could have a negative impact on your credit score.
The key difference between a working capital loan and a term loan is the way each loan type is repaid. A working capital loan has a short repayment period, usually lasting 6 to 18 months. Term loans are repaid over a longer period of time, ranging from 2 to 10 years.
The difference between a working capital loan and a line of credit is the way in which the funds are provided and repaid. A working capital loan is a one-time lump sum of funds that is given to a business, and the repayment terms are typically between 6 and 18 months. A line of credit is an agreed-upon amount of money that a business can access on a monthly recurring basis, and the amount used by the business is repaid each month.
Yes, a working capital loan is tax deductible. This means that the business can claim a tax deduction for any interest paid on the loan on its annual tax return. This helps to reduce the overall cost of getting the loan.
If a borrower defaults on a working capital loan, the lender may set up a repayment plan or negotiate a settlement with the borrower. If the borrower is unable or unwilling to repay the debt, the lender may seize the collateral used to secure the loan in order to cover the loss. The lender may also begin legal action and inform the credit bureaus that the loan is in default, which can have a negative impact on the borrower’s credit score.
The most common lenders of working capital loans are online lenders, traditional banks, and the Small Business Administration.