Working capital loans 101

small business owner working, working capital loans 101

Estimated reading time: 4 minutes

Probably Funding’s working capital loans are meant to help businesses reach their goals because we believe that cash flow should never hold you back. But with over 45% of small business loan applications being rejected as reported by, many businesses get stuck with their second or third choice, meaning subpar lenders, shorter terms, and higher rates.

Our loans give you the freedom to choose the best loan with everything you need to help your business grow! Our customers use their funding to invest in their business’s short term needs and to ensure they can weather any storm.

We want to help you grow your business faster and succeed. Learn everything you need to know about working capital loans here!

What are working capital loans?

Working capital loans are loans that can help businesses finance their everyday operational needs. From purchasing additional inventory to assistance with payroll, investing in new, small equipment, paying taxes or other fees, rent, marketing efforts, or just general cash flow hurdles, these loans are meant to bridge the gap between what your business needs right now and what it currently has.

Working capital loans are usually short-term, not multi-year loans, however, that doesn’t mean you can’t still get a great solution that works with your seasonal and industry needs. In fact, Probably Funding offers repayment terms of up to 18 months for our working capital loans, instead of the industry standard of 12 months or less.

How these loans work.

Sometimes bills fall just a few days too early, or you need more inventory to fill a large order. Maybe your payroll is due before your outstanding invoices have been paid. When schedules don’t quite work out, that’s when a working capital loan can greatly help you meet your business needs.

If a business does not have enough cash on hand to cover day-to-day or weekly operational expenses, then looking into a loan might be the solution. But it’s good to understand the process and the best lenders before you ever need a loan. That way you can make a quick yet informed decision and get your funds sooner.

Just like many loan forms, a working capital loan includes three steps: application, funding, and repayment. First, you will apply for your loan, which with Probably Funding, is a simple and streamlined process. Next, you will receive your funding in as little as one business day. And finally, you will repay your loan according to the terms and rates you agree upon.

Though this process sounds simple, many lenders bog it down with additional paperwork, wait time, and confusing terms. Make sure you choose a loan that works for you, and a lender who is willing to partner with you, be clear, and be flexible.

Benefits of working capital for your business.

One of the main pros of a working capital loan is that it requires less paperwork and is faster in most cases than a loan through traditional lenders. This is helpful if you are using it to bridge any capital gaps in your day-to-day or weekly operational needs.

Additionally, usually, the loans are a form of debt financing that doesn’t require an equity transaction, so you still have full control of your business. Furthermore, they do not require any collateral, called ‘unsecured’ loans, and are in the business name.

Working capital loans with Probably Funding are based on your current business performance, not years of credit history, and your on-time payments with us help build your business credit.

Contact Probably Funding today!

Ultimately, a working capital loan is a great choice for bridging the gap between operational and day-to-day needs, but only if it is through a great lender. Contact Probably Funding today to get started.


This Probably Funding blog post is purely educational and features general information and opinions. Nothing contained herein is intended to constitute advice or recommendations and should not be treated as such.