What Are the Best Financing Options When You Need Working Capital?
Today, business owners have access to several financing options designed specifically for working capital needs—such as term loans, lines of credit, and merchant cash advances.
Each option serves a different purpose, and knowing when to use each one can make a big difference.
Business owners face challenges all the time:
unexpected expenses, low cash flow when inventory is needed, covering payroll, or taking advantage of new opportunities.
The key question is: how do you know which financing option makes sense for your situation?
Below, we break down the most common working capital options and when to use them.
What Is a Merchant Cash Advance (MCA)?
A Merchant Cash Advance is not a traditional loan.
It’s an advance based on your future sales, where the lender purchases a percentage of your expected revenue at a cost that reflects the business’s risk level.
With an MCA, businesses can typically access 50% to 150% of their average monthly revenue, based on bank statements.
An MCA can be a good option when:
You clearly understand how the funds will be used and expect a fast return
You need capital quickly to keep operations running
If you’d like to apply for a Merchant Cash Advance,
click here.
What Is a Term Loan?
A term loan is financing that’s repaid over a set period with fixed payments, either weekly or monthly.
These loans are usually short to medium term, ranging from 6 to 24 months.
The payment amount and schedule stay the same throughout the term, making them easier to plan for.
A term loan is ideal when:
Cash flow is tight and you need stability
You want working capital with predictable payments
What Is a Line of Credit and When Should You Use It?
A business line of credit is a revolving financing option, meaning you only pay interest on the amount you use.
As you repay what you borrow, the available credit becomes accessible again.
A line of credit is ideal when:
You need flexible working capital for payroll, inventory, hiring, or marketing
You want a financial safety net for emergencies or opportunities
Keep in Mind
With us, you can explore your financing options with no upfront fees and no impact on your credit score.
Our goal is to help you find the solution that truly fits your business reality—not just what’s available.
The right working capital option isn’t about borrowing more—it’s about borrowing smarter.
If you’d like help reviewing your options, we’re here to guide you.
