Working Capital Loans through Lends Well

Apply in as little as 6 minutes and hear from a dedicated loan specialist within one hour.


Term lengths between 6 months and 18 months


Factor rate as low as 1.152

Amount from $25.1K–$400K

Applying won’t affect your credit score!*

Why a Working Capital Loan?

Wondering if a working capital loan is right for your small business? If you want to increase your cash flow and don’t want to take on a long-term debt obligation, this working loan could be a good fit for you. You can use the funds for almost any business purpose. This includes taking advantage of new opportunities and covering unexpected expenses.

Our simple and straightforward application process can take less than 6 minutes. This allows you to focus on your business while your dedicated loan specialist takes care of the rest.


Since 2011, F has helped businesses in over 700 industries access the capital they need.

Over $10 billion lent to 50,000 small businesses globally.

Pros and Cons of a Working Capital Loan


  • You don’t need a perfect credit score to qualify

  • You can get access to financing quickly

  • You can use these funds to cover almost any business expense


  • Daily or weekly payments can make cash flow harder to predict compared to other financing options

  • Fees can be higher compared to other financing options

You deserve better business finance

Lends Well was created with a big idea: to revolutionize the outdated lending system and build a better deal for small businesses. With one 6 minute application we can help you find the right financing options for your needs, from lines of credit to term loans, cash advance and even Small Business Administration (SBA) loans.

Let's get started.


Start your online application

Apply online in 6 minutes with one simple application.


Review your options

Your dedicated Account Manager will contact you as soon as possible to review your needs and help you find the best funding option for your business.


Get funded

Get a decision in as little as 24 hours and funding as soon as the next day accepting an offer.

Working Capital Loan Frequently Asked Questions

What is a working capital loan?

A working capital loan is a loan that’s intended to be used for short-term expenses, such payroll, purchasing supplies, and investing in the upfront costs associated with a new project. Working capital is the difference between a business’ current assets and liabilities. Companies use this money to pay for day-to-day and short-term expenses. A company that experiences a cash-flow crunch and doesn’t have enough working capital is at risk of failing even if it has the potential to be profitable in the long run.

How does a working capital loan work?

Businesses can use different types of financing to fund their working capital needs, including installment loans and lines of credit. Working capital loans tend to distinguish themselves with short repayment terms—reflecting the fact that they’re intended for short-term needs rather than a large or long-term investment. Lends Well working capital lending partner offers loans with six to 18-month repayment terms and automatic daily or weekly payments.

What is a factor rate?

Rather than charging interest, some working capital lenders charge a fee for borrowing money based on a factor rate. For example, your factor rate might be as low as 1.15, which means that for every $100 you borrow, you’ll repay $115. The total repayment amount is determined when you receive your loan based on the factor rate and - when applicable - other fees.

Are working capital loans secured or unsecured?

Lenders may offer either secured or unsecured working capital loans. A secured loan requires that you provide your business’ assets, and sometimes your personal assets, as collateral for the loan. While secured business loans may be easier to qualify for or offer lower fees, you’re also taking on additional risk. Unsecured loans, like the business capital loans from Lends Well lending partner, might cost a little more but they don’t require collateral.

What can I use a working capital loan for?

You can use a working capital loan for almost any business expenses. However, this type of financing is best suited for short-term expenses. For example, if a client wants to place a large order and you don’t have enough cash on hand for the upfront expenses, a capital loan could help you take advantage of the opportunity. Or, if your business experiences a temporary setback, you can use the money to keep your business operating until it gets back on its feet.

What kind of businesses are best suited for a working capital loan?

Working capital loans tend to be a relatively expensive type of financing. Therefore, newer businesses or businesses that haven’t established themselves (or their credit) may be a good fit. However, even a well-established business could find itself looking for a working capital loan for a short-term expense. This could be because the financing process can be much faster than taking out a traditional loan.

Is there an application fee?

You generally won’t have to pay a fee to apply for a working capital loan. In fact, some lenders let you quickly prequalify online to find out if you’ll likely be approved. If you accept a loan offer, you may have to pay an origination fee on the loan amount. This could be subtracted from the loan’s disbursement.

Can I prepay and is there a prepayment penalty?

Many lenders don’t charge prepayment penalties on working capital loans. However, if you’re charged a fee based on a factor rate, there isn’t necessarily an advantage to paying back the loan early. This is because your total repayment amount has already been determined.

How does repayment work?

Repaying a working capital loan can depend on the type of loan you receive and the lender. Lends Well working capital lending partner offers daily and weekly repayments2. Once you receive your working capital loan, your payments will be automatically transferred from your linked business bank account until you’ve repaid the entire loan amount. The repayment terms generally range from six to 18 months.

What are the pros of a working capital loan?

A business capital loan can quickly offer you access to funding that can help you run and grow your business. If you’re struggling to purchase inventory, make payroll, or get through a slow season or temporary setback, the short-term nature of a capital loan can be a good fit. Additionally, the credit, business history, and revenue requirements may be easier to meet with a working capital loan than other types of financing.

What are the cons of a working capital loan?

The main drawbacks of working capital loans are the cost and repayment structure. Other loans may offer lower fees or charge interest that results in paying back less money overall. A loan that charges interest over time can also be a better option if you think you’ll be able to pay back the loan early and avoid some of the interest charges. Other types of loans may also require monthly payments, which can be easier to plan for and manage than daily or weekly payments.

1 If your business is organized as a general partnership, your credit score may be impacted.


2 Weekly payments for capital loans have different minimum qualifying criteria than the daily payment option.


3 Approval and funding times may vary between lending partners.


4 Fee is waived for 6 months if a $5,000 initial draw is made within 5 days of opening account.