Working capital loan
Cover payroll, rent or an emergency today
Working capital funding is for immediate needs — payroll, rent, an emergency repair — not long-term assets. Approvals can come back the same day you apply.
What is a working capital loan used for?
A working capital loan covers day-to-day operating costs — payroll, rent, suppliers, an emergency repair — rather than long-term assets or investments. It exists to bridge the gap between money you have earned and money you have actually collected. RAN Funding offers working capital from $10,000 to $1,000,000 at factor rates from 1.08, over 3 to 24 months, with same-day approval on qualifying applications. If you are funding growth rather than covering a shortfall, a business term loan is usually the better fit.
For the bills that cannot wait for revenue
A working capital loan is not used to buy long-term assets or investments; these loans cover payroll, rent or other debts. If an emergency payment has to be made and the capital has not arrived yet, this is the product to call about.
There is no need to stop production and lose more money while you wait on steady incoming revenue. We work out exactly what you need and how much we can provide, then set the terms so you can handle business as usual. If you need funding for longer-term investments such as growth, a business term loan is likely the better fit.
What to have ready before you apply
Documents required
- Driver’s license
- Voided business check
- Recent bank statements Typically 3 months; some states require 4.
- Credit card processing statements (if applicable)
What happens next
- Apply online in about five minutes
- A specialist reviews your file, usually within hours
- You compare the offers you qualify for
- Funds land in your business bank account
Who qualifies for a working capital loan?
A working capital loan is underwritten on your business bank statements, not on collateral or a credit committee. That is what makes it the product most owners can actually get this week, and it is why the requirements are about deposits rather than paperwork.
- Time in business: generally six months or more.
- Deposits: consistent monthly business deposits into an account in the entity’s name. Consistency matters more than size.
- Bank conduct: average daily balance, number of negative days, and returned items over the last three months. A run of NSF days in the last thirty narrows the menu.
- Credit: from 500. Read, not gating; a stronger score improves the factor rather than the decision.
- Existing positions: every open loan or advance disclosed. Two or more may point toward consolidation before any new money.
Working capital loan, merchant cash advance or line of credit?
Three products get compared in almost every conversation we have. The differences are in how you repay, not in how you qualify.
| Working capital loan | Merchant cash advance | Line of credit | |
|---|---|---|---|
| Repaid | Fixed daily or weekly ACH | Percentage of card sales | Monthly on what you drew |
| Priced as | Factor rate, from 1.08 | Factor rate, from 1.08 | Interest, from 1% a month |
| Amount | $10,000 – $1,000,000 | $10,000 – $1,000,000 | $10,000 – $2,000,000 |
| Credit | From 500 | From 500 | From 650 |
| Speed | Same day to 24 hours | Same day | 48 to 72 hours |
| Best for | A dated need with a fixed budget | Card-heavy businesses with seasonal takings | Recurring gaps; redraw as you repay |
| Wrong for | Revenue that swings month to month | Businesses paid by invoice, not card | Owners below 650, under a year, or under $250K in annual revenue |
If your revenue is steady, the working capital loan’s fixed remittance is easier to budget. If it swings with the season, an advance that takes a percentage of sales moves with you. If you can wait two days and clear a 650 score, the line of credit is usually the cheapest of the three and the only one you can use twice. Revenue-based business financing explains the mechanics behind the first two.
What it costs, with the arithmetic shown
The factor below is a placeholder chosen to make the example legible, not a quote; your factor is set on your file.
- Loan: $40,000 at a 1.15 factor. Total repayment: $46,000.
- Term: six months, about 126 business days. Daily remittance: roughly $365.
- Cost of capital: $6,000, fixed at signing. Repaying early does not reduce it unless the agreement includes a discount.
Because the total is fixed and the term short, the equivalent annual rate is far above the “15 per cent” the factor suggests; factor rate vs APR works the conversion through. The useful question is still the plain one: does $6,000 of cost buy more than $6,000 of value in the next six months?
What you will be asked for
- Last 3 months of business bank statements Some states require 4 months.
- A one-page application with ownership and entity details.
- Voided cheque or bank letter for the remittance.
- For larger amounts, a read-only bank connection and sometimes a recent tax return.
When a working capital loan is the wrong tool
- A business losing money at current volume. A fixed daily remittance on a shrinking account makes the problem worse, not better.
- Long-term investment. A machine, a build-out or a buy-out should be financed over years with equipment financing or a term loan.
- Slow-paying customers. If the gap is created by 60-day invoices, receivables financing is cheaper and grows with your sales.
- Owners who clear a bank’s bar. If your credit and time in business qualify for a line of credit or SBA loan, take the cheaper money and keep this product for emergencies.
Ready to see your options? One application, about five minutes, a soft credit inquiry only. Our how it works page sets out the sequence, and same-day business funding explains what has to be true for the fastest close.
Ready to see your options?
No obligation and no credit pull to apply. A funding specialist will come back to you with the offers you qualify for.
Questions we get about this product
What are the repayments, and how quickly can I get funding in an emergency?
We offer a range of same-day business loans, including working capital loans, which are used to cover payroll, rent and debts rather than to buy long-term assets. If you need emergency funding, fill in an application and an advisor can help you secure the capital to support your business.
It is an emergency and I need same-day funding. Can you help?
Yes — qualifying applications can be approved the same day you apply. Apply online or call 877-522-6045 and tell the advisor it is urgent.
Can I apply if I already have other loans?
You can. Existing finance does not have to be repaid first. An advisor will look at your overall position and tell you what is available to you.
Cover the gap between paying out and getting paid
Payroll before the invoice clears, stock before the season starts, a bill that landed early. Working capital financing is built for the short-lived gaps that every operating business hits.
- From $10,000. Every product we place starts at ten thousand dollars.
- Three months of statements. Your last three business bank statements to start; some states require four.
- One specialist. The same person from application to funding — paid by the funder, not by you.
Not quite right? Compare the alternatives
One application puts you in front of all of these. A specialist will point you to the ones that fit.