Best Working Capital Loans

Formerly Kabbage Funding, American Express Business Line of Credit provides business owners with a financial lifeline that they can tap into as needed. 

If you’re already an Amex customer, the application process will be easier for you since Amex will pull from your existing file to determine if you qualify for the product. You can even pre-qualify without an impact on your credit.

Amex determines the credit line amount based on your personal and business credit reports, average monthly revenue, time in business, transaction volume, and other factors. Each time you draw on the account, it generates a loan and applies a fee—you’ll have to pay back the amount within a set term. The fee can be as low as 2% or high as 27% depending on your personal and business creditworthiness and the loan term. Funds take 1 to 3 business days to post to your business bank account. 

• Minimum credit score/range: 640
• Minimum income: Average monthly revenue of $3,000
• Employment qualifications: Must be at least 18 years old, in business for 12 months or more, and have a business bank account
• Availability: All 50 states and Washington, D.C.

For some businesses, qualifying for a business loan or line of credit just isn’t possible if they don’t have a satisfactory credit score. A merchant cash advance could be a good solution as you’ll get access to the funds you need very quickly to keep your business operating. Credibly makes the process quick and easy, and is very transparent about its costs and how it works. In fact, it has strong customer service ratings, which can be tough to achieve as a nontraditional lender.

The way it works is Credibly will collect a percentage of your daily credit card sales until the amount borrowed plus the factor rate is paid back. The downside is that merchant cash advances are an expensive way to borrow money, and if you don’t qualify for the lower end of the factor rate range, the cost can be substantial.

• Minimum credit score/range: 500+
• Minimum income: $15,000+ average monthly bank deposits
• Employment qualifications: 6 months in business
• Availability: States of operation are not disclosed

Citi is a Small Business Administration (SBA) Preferred Lender, meaning it can offer loans to small businesses of up to $5 million. There isn’t much information about the loan process disclosed online and there’s no way to get pre-qualified or see rates. Instead, you must enter your contact information to initiate a phone call with a loan officer.

That said, if you’d prefer to work with a big name bank to take advantage of the SBA loan program, or if you’re already a happy Citi customer, Citi’s small business loan is worth exploring. 

Loans that are backed by SBA tend to have competitive rates and other benefits.

• SBA loans can be used for operating capital and other business needs.
• Minimum credit score/range: Not disclosed
• Minimum income: Not disclosed

Bluevine is a fintech company that specializes in business financial services, including small business lines of credit. We like its guide to applying for its lending products and its extensive library of content to answer any questions small business owners may have.

Bluevine is also transparent about its rates, fees, requirements, and what the application process requires, so you have a good idea up front if it’s worth applying. And, despite being a fairly new player in the space (it was founded in 2013), it has strong customer ratings.

• Minimum credit score/range: 625 personal FICO score
• Minimum income: $40,000 in monthly revenue (must link to your business checking account or provide statements from the last 3 months)
• Employment qualifications: 24+ months in business
  
• Operates in 47 states

Rapid Finance is an alternative lender that gets high praise from its small business customers online. The application process is completely online and moves quickly, which is appealing if you’re looking to get your funds ASAP. 

If your credit is not super strong, Rapid Finance may not hold it against you as long as your financials demonstrate the health of your business. This can make it a more flexible option than more traditional lenders, including applying for a loan that puts up assets as collateral.

• Minimum credit score/range: Not disclosed
• Minimum income: Not disclosed
• Employment qualifications: Not disclosed

Fundbox offers fast funding after completing an online (or app) application for small businesses seeking a business line of credit. Unlike many other business lenders, applicants only have to be in business for six months and have $100,000 in annual revenue in order to qualify, making it a good choice for newer entrepreneurs.

Like other lines of credit, the cost could be higher than traditional loans, but there is flexibility in that you only have to borrow what you need. Customer ratings are mostly positive.

• Minimum credit score/range: 600+
• Minimum income: $100,000 in annual revenue
• Must be in business at least six months