Operating capital
Working Capital Financing for Everyday Operations
Working capital financing gives your business cash to cover the gap between paying for operations and getting paid. Use it to buy inventory, meet payroll, take on a larger order or keep a reserve while revenue catches up.
Start with a short application. An advisor reviews your details and explains which options may be available before you decide anything.
- What it is
- Short-term funding for day-to-day operating needs
- Common structures
- Short-term loans, lines of credit and revenue based financing
- How it is repaid
- Scheduled payments, or a share of sales for an advance
- What providers review
- Revenue, bank deposits, time in business and current obligations
Amounts, costs and timing depend on the provider and your business profile. No single minimum applies to every program.
Capital matched to the way your business earns
Working capital is a purpose, not a single product. Providers meet that need with a few different structures, and the right one depends on how predictable your revenue is and how long you need the money.
A short-term loan or line of credit is debt. You borrow a set amount, or draw against a limit, and repay it on a schedule with the interest and fees stated in the agreement.
Revenue based financing works differently. In many of these agreements the provider purchases a portion of your future sales at a discount, and you deliver an agreed percentage of receipts until the purchased amount has been delivered. Many collect a fixed daily or weekly amount based on estimated sales and include a reconciliation provision that can adjust remittances to actual receipts.
Share your numbers
Complete the application and provide recent business bank statements so revenue and cash flow can be reviewed.
Match the structure
An advisor looks at your revenue pattern, current obligations and the purpose of the funds to identify structures that may fit.
Compare the terms
If providers make offers, compare total cost, payment amount and frequency, and fees side by side.
Decide and fund
You choose whether to accept. The provider issues funds after completing its own review.
What do you need the funds to do?
Choose a goal to see how working capital is commonly used for it and what to think through before you apply.
Funding purpose
This explorer is general information, not advice for your business. An advisor can help you weigh options for your situation.
Stocking up before demand arrives
How it can help
Pay suppliers now, sell through the inventory over the following weeks and repay from those sales. Some suppliers price larger orders more favorably.
Cash flow to consider
Match the repayment period to how quickly the inventory sells. Daily or weekly payments can strain cash if goods sit on shelves longer than planned.
Structures often used
Short-term loans or a line of credit. For ongoing inventory needs, a line you can draw and repay may cost less than repeated lump sums.
Need recurring access? Compare a business line of credit.
Keeping your team paid while revenue catches up
How it can help
Bridges a short timing gap, such as a slow month before a busy season or a delay in a large customer payment.
Cash flow to consider
Borrowing for payroll works best when you can see the revenue that will repay it. If the gap is ongoing, address the underlying cash flow first.
Structures often used
A line of credit for repeat timing gaps, or a short-term loan for a single, defined gap.
Funding the upfront costs of a big job
How it can help
Covers materials, labor and shipping before the customer pays, so you can accept work that would otherwise strain cash.
Cash flow to consider
Compare the financing cost with the profit on the order, and confirm when the customer will actually pay.
Structures often used
Short-term loans, or invoice factoring once you have invoiced a creditworthy business customer.
Waiting on invoices? See how invoice factoring works.
Building up before peak demand
How it can help
Funds extra inventory, seasonal staff and marketing ahead of your strongest months.
Cash flow to consider
Plan for payments that start before peak revenue arrives. Some providers can align payment timing with seasonal patterns; ask before you accept.
Structures often used
A line of credit drawn as needed, or a short-term loan timed to your season.
Keeping operations running
How it can help
Pays for an urgent repair, a replacement part or an unexpected bill so the business keeps operating.
Cash flow to consider
Fast options usually cost more. If the expense is a long-lived asset, longer financing may lower the payment.
Structures often used
Short-term loans or a line of credit. For major equipment, equipment financing spreads cost over the asset’s useful life.
Replacing machinery or a vehicle? Compare equipment financing.
Investing in growth with a clear return plan
How it can help
Supports a campaign, a key hire or a product launch that you expect to increase revenue.
Cash flow to consider
Growth spending takes time to pay back. Make sure payments are affordable before the new revenue arrives.
Structures often used
Term loans for larger plans with a longer payback, or a line of credit for staged spending.
Planning a larger investment? Compare term loans.
When working capital financing may make sense
It may fit when
- Your business has steady deposits and a near-term operating need.
- You can see how the funds will produce or protect revenue, such as inventory you expect to sell.
- Speed and simplicity matter more to you than getting the longest possible term.
- You can comfortably make the payment through slower weeks.
Another option may fit better when
- You are buying a long-lasting asset such as machinery or a vehicle. Explore equipment financing
- Your cash is tied up in unpaid invoices from business customers. Explore invoice factoring
- You expect recurring, uneven needs rather than one amount. Explore lines of credit
- You have time for a fuller review and want longer terms, often with lower payments. Explore SBA loans
Practical ways businesses put working capital to work
Inventory and materials
Restock ahead of demand, buy in bulk or secure materials for a confirmed job.
Payroll and staffing
Keep your team paid while receivables or seasonal revenue catch up.
New orders and contracts
Cover upfront labor and supplies on a project before the customer pays.
Seasonal preparation
Build stock and staffing before your busiest months.
Repairs and replacements
Handle an urgent repair so operations keep running.
Marketing and growth
Fund a campaign, a new hire or a launch with a clear plan for repayment.
What providers typically review
Requirements vary by provider and structure. These are the factors most working capital providers look at, not universal minimums.
- Revenue and deposits
- Consistent monthly deposits show the ability to make payments. Many programs have a minimum monthly revenue, and it differs from program to program.
- Time in business
- Some programs consider businesses with a few months of history. Others look for a year or more.
- Bank account activity
- Average balances, overdrafts or returned items, and how regularly deposits arrive.
- Current financing
- Existing loans or advances, and their payments, affect how much more a business can support.
- Credit profile
- Personal and business credit are reviewed for many products. For some revenue-based programs, cash flow carries as much weight as the score.
- Industry and purpose
- Some industries and uses fall outside a provider’s guidelines.
See which working capital structures fit your revenue.
Share your business details once. An advisor reviews them and walks you through options that may be available, including the total cost and payment schedule of each.
Understand the total cost before you sign
Pricing depends on the structure, the provider and your business profile. Focus on the total cost, the payment amount and frequency, and what happens if sales slow down.
Terms to know
Interest rate and APR
Loans and lines of credit are usually priced with an interest rate. An annual percentage rate (APR) can also reflect certain fees, which makes offers easier to compare.
Total repayment and cost per dollar
Some short-term products state a fixed total amount to be repaid or delivered instead of an interest rate. Subtract the amount you receive to find the total cost, then divide that cost by the amount you receive to see what each dollar costs. Because the cost is fixed, a shorter payback period means a higher effective annual cost, so ask for the estimated APR too.
Specified percentage
In revenue based financing, the share of future receipts you agree to deliver until the purchased amount has been delivered.
Reconciliation
A provision in many revenue based financing agreements that lets you request an adjustment so remittances reflect actual receipts. Procedures differ by contract, so confirm how and how often it can be used.
Fees
Some offers include origination, underwriting or administrative fees, which may be deducted from the amount you receive.
Early payoff
Ask whether paying early lowers the total cost. With a fixed total repayment amount, delivering it faster raises the effective annual cost and generally does not reduce what you owe, unless the agreement offers an early payoff discount.
Tradeoffs to weigh
- Faster, revenue-based options generally cost more than longer-term bank or SBA financing.
- Daily or weekly payments reduce available cash during slower weeks.
- Adding a second advance on top of an existing one can make payments hard to sustain.
- Many offers require a personal guarantee and a UCC filing on business assets.
Hypothetical example
How a fixed cost becomes an estimated APR
A business receives $50,000 and agrees to deliver a fixed total of $65,000, which it expects to take about nine months.
- Amount received
- $50,000
- Total to be delivered
- $65,000
- Cost of the funds
- $15,000
- Cost per dollar received
- $0.30
- Estimated weekly remittance over 39 weeks
- About $1,667
- Estimated APR if delivered over 39 weeks
- About 72%
Hypothetical illustration before any fees. If remittances finish sooner, the estimated APR rises. It is not an offer or a quote. Actual pricing and terms vary by provider and business.
What happens after you apply
Not sure which structure you need? Start the application and an advisor will review it with you, or call to talk it through first.
Questions first? Call 619-387-5891Complete the application
Share basic details about your business, the amount you are looking for and how you plan to use it.
Send your bank statements
Provide your last four business bank statements so revenue and cash flow can be reviewed.
Review options with an advisor
Correia Financial reviews your profile, identifies providers whose programs may fit and explains any offers, including total cost and payment schedule.
Provider review
The provider completes its own underwriting and may ask for more information. Approval and final terms are the provider’s decision.
Decide and receive funds
If you accept an offer and sign, the provider issues the funds. Timing depends on the provider.
Working capital compared with related options
| Feature | Working capital | Business line of credit | Invoice factoring |
|---|---|---|---|
| Best suited for | A specific operating need with a near-term payoff | Recurring or unpredictable needs | Waiting on payment from business customers |
| How you receive funds | One lump sum | Draws as needed, up to a limit | An advance on each invoice you sell |
| Repayment | Scheduled payments, or a share of sales for revenue based financing | Repay what you draw, plus interest and any fees | Your customer pays the invoice, usually to the factor |
| Mainly reviewed | Revenue and bank activity | Revenue, credit and time in business | Your customers’ payment history and credit |
| Watch for | Payment frequency and total cost | Draw, maintenance or unused-line fees | Fee structure, reserve and recourse terms |
General comparison. Features vary by provider and agreement.
Working capital questions
Related financing
Related reading
What is working capital financing?
It is funding used for day-to-day operating needs such as inventory, payroll and short-term expenses. It can be structured as a short-term loan, a line of credit or revenue based financing, depending on the provider and your business.
Is revenue based financing a loan?
Many revenue based financing agreements are structured as a purchase of future receivables rather than a loan. The provider buys a portion of future sales at a discount, and you deliver an agreed percentage of receipts until the purchased amount is delivered. How a specific agreement is treated depends on its terms and the applicable law, so read it carefully.
How much working capital can my business get?
It depends on revenue, bank activity, current obligations, credit and each provider’s guidelines. Many providers size offers in relation to monthly revenue. An advisor can explain what may be available after reviewing your statements.
How are payments made?
Loans usually have scheduled payments on a daily, weekly or monthly basis. Revenue based financing usually collects a percentage of receipts or a fixed estimated amount that may be adjusted through reconciliation. Your agreement states the schedule.
What if my business has a slow month?
Loan payments are generally due as scheduled regardless of sales. Many revenue based financing agreements allow reconciliation so remittances reflect actual receipts. Review these terms before you sign and contact the provider early if sales drop.
Do I need collateral?
Many working capital products do not require specific collateral, but providers commonly file a UCC lien on business assets and ask for a personal guarantee. Terms vary by provider.
Will applying affect my credit?
Providers may review personal credit as part of their decision. Ask how and when your credit will be checked before you authorize it.
Learn before you apply
Guides that answer the questions owners ask about this kind of financing.
Costs & ComparisonsWorking capital financing: how to compare costs and payments
Compare working capital offers on funds received, total cost, payment schedule and estimated APR, with a two offer calculator.
Qualification & CreditCan you get business funding with an existing loan or cash advance?
How providers weigh existing balances, payments and UCC liens, and how to tell whether more funding fits your cash flow.
Qualification & CreditBusiness funding with bad credit: what providers actually review
What a lower score changes, what providers weigh beyond it and how to judge the cost of any offer before you sign.
More guides on this topic
Put Your Next Business Move Into Motion.
Whether you’re preparing for a busy season, purchasing inventory or taking on a new project, start by exploring financing that may fit your revenue and cash flow. Share your business details so Correia Financial can review potentially available options and help you understand the terms.
Complete the application and provide your last four business bank statements for an initial review. Additional documents may be required.
Correia Solutions LLC dba Correia Financial is a business financing brokerage, not a lender. Availability and terms depend on each provider's requirements and underwriting. Applying does not guarantee approval or funding.