What is a working capital loan?

Short-term financing for a business's operating costs — payroll, fuel, materials, rent — rather than for buying equipment. It's usually repaid over 3–18 months from incoming revenue.

Can I get working capital with bad credit?

Often yes. Alternative lenders weigh revenue and cash flow more heavily than credit score, so consistent deposits and a few months of history matter more than a perfect file.

How fast can working capital be funded?

Unsecured working capital can fund within a few business days once bank statements are reviewed. Secured options take longer because collateral has to be assessed.

How is working capital different from a term loan?

A term loan is usually larger and repaid over years, often for a specific asset. Working capital is smaller, short-term, and covers day-to-day operating costs from incoming revenue.

Working Capital Loans in Canada | Crewline

What working capital financing covers

Working capital financing bridges the gap between money going out and money coming in. It covers payroll between progress draws, fuel and materials on a job you haven't invoiced yet, rent and insurance in a slow month, and the stretch when customers pay on 30–90 day terms. Because it funds operations rather than assets, it's faster and lighter than an equipment loan — there's no machine to appraise and register. The trade-off is that it's meant to be repaid quickly from the cash it unlocks, not carried for years. Used well, it's the difference between turning down a contract because you can't float the up-front cost and taking the work knowing the financing covers the gap until you're paid.

How much you can qualify for

Most working-capital offers size to your revenue and cash flow — commonly a portion of average monthly deposits — rather than to collateral. A lender looking at steady deposits of, say, $50,000 a month will extend far more than one looking at $10,000, regardless of what you own. Time in business, existing debt, and whether you have unpaid invoices on the books all move the number up or down. A business with steady monthly revenue and a few months of history can usually access a meaningful amount even without hard assets to pledge, which is exactly why this product fits trades and service businesses that are cash-rich in billings but asset-light on paper.

Secured vs unsecured working capital

Unsecured working capital carries a higher rate but no lien and a faster close — often within a few business days — because there's no collateral to assess. Secured options cost less but ask for collateral or a general security agreement over your business assets, and take longer to arrange. Which fits depends on how quickly you need the money and how much you're borrowing: a small, urgent gap usually justifies paying more for speed and no lien, while a larger, planned raise is worth securing for the lower rate. Many businesses keep an unsecured option for emergencies and negotiate a secured facility for predictable seasonal needs.

What it costs and how to compare offers

Working-capital cost is quoted several ways — an interest rate, a simple factor (e.g. 1.15), or a fixed fee — and the headline numbers aren't directly comparable. Always convert an offer to an annualized cost and a total dollar cost before you decide, and read for the extras: origination fees, prepayment penalties, and how frequently payments are pulled (daily and weekly remittances strain cash flow more than monthly). Then weigh the real number against what the cash lets you earn or avoid. A missed payroll, a lost contract, or a supplier who won't extend terms again costs far more than the financing — but only if the financing is actually solving a revenue-producing problem.

How fast funding happens

For unsecured working capital, the timeline is usually driven by how quickly you can produce recent business bank statements. With those in hand, an alternative lender can often approve and fund within one to three business days, because the underwriting is really a read of your cash flow rather than a full credit file review. Secured facilities take longer — collateral has to be valued and security registered — so plan for a week or more. If speed matters, have your last six months of statements, a summary of existing debt, and your accounts-receivable aging ready before you apply; missing documents, not credit, are the most common cause of delay.

When working capital is the wrong tool

Working capital fixes a timing problem — cash out before cash in — not a profitability problem. If the business loses money on every job, borrowing to cover the shortfall only postpones the reckoning and adds interest to it. It's also the wrong tool for buying a truck, trailer, or machine: that's asset financing, which uses the equipment as collateral for a lower rate over a longer term, and it routes to our sister brand IronFinance. And if the gap is specifically slow-paying invoices, invoice financing targets the cause more precisely. Match the product to the problem, and working capital does what it's meant to; use it to plug a structural loss and it makes things worse.

Working capital for seasonal and project-based trades

Seasonal and project-based businesses feel the cash-flow gap hardest, and working capital is built for exactly that shape. A landscaper or paving contractor earns most of the year's revenue in a handful of busy months but pays crews, fuel, and suppliers year-round; a general contractor fronts materials and labour on a build long before the final progress draw clears. Sizing the financing to the season — drawing when costs spike and repaying as billings land — turns an uneven year into a manageable one. The key is to borrow against a real, dated inflow you can point to (a signed contract, a booked season), not a hope, so repayment is covered by money you can already see coming.

What lenders look at

Monthly revenue and average bank deposits
Time in business (6+ months is a common floor)
Recent business bank statements
Existing debt and repayment history
Whether you have unpaid invoices outstanding
Personal and business credit estimate

Frequently asked questions

What is a working capital loan?: Short-term financing for a business's operating costs — payroll, fuel, materials, rent — rather than for buying equipment. It's usually repaid over 3–18 months from incoming revenue.
Can I get working capital with bad credit?: Often yes. Alternative lenders weigh revenue and cash flow more heavily than credit score, so consistent deposits and a few months of history matter more than a perfect file.
How fast can working capital be funded?: Unsecured working capital can fund within a few business days once bank statements are reviewed. Secured options take longer because collateral has to be assessed.
How is working capital different from a term loan?: A term loan is usually larger and repaid over years, often for a specific asset. Working capital is smaller, short-term, and covers day-to-day operating costs from incoming revenue.

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See what you may qualify for

Crewline is a referral and matching service, not a lender. We do not make credit decisions or guarantee approval. Financing is provided by third-party lenders subject to their own terms and criteria.