Every business has a stretch of time between paying for something and getting paid for it. You buy inventory in March and sell it in May. You pay a crew on Friday and invoice the customer for net 30. You hire ahead of a busy season and the revenue shows up after. A working capital loan exists to cover that stretch. It is not meant to build a building or buy a truck. It is meant to keep the business running smoothly while money is on its way. fundivi offers working capital from $10K to $2M, with decisions typically back the same day, and this guide explains what it does well, what it does not, and how to decide whether it is the right tool for you.
If your business has been open for 6 months or more, brings in $30K or more in monthly revenue, and the owner has a personal credit score of 550 or higher, you can see what you qualify for in about 2 minutes.
What a Working Capital Loan Is
A working capital loan is a lump sum of cash you receive up front and repay over a defined period. The word working describes the purpose, not the structure. It funds the ordinary operations of the business, such as payroll, inventory, rent, supplier deposits, marketing and taxes, and it is evaluated mostly on how much cash your business generates, not on pledged property.
Most owners meet the term when a specific problem shows up. A large customer pays late and payroll is due. A supplier offers a discount for paying early. A slow month is followed by a busy one and the costs of the busy one have to be paid first. In each case the business is healthy but the timing is off, and working capital moves money forward in time to fix it.
What Working Capital Is Commonly Used For
Rather than listing every possible use, it helps to group them by the kind of problem they solve.
Timing problems. The most frequent reason. Revenue is coming, but expenses arrive first. Payroll, rent and supplier invoices are the usual suspects.
Stocking up. Buying inventory in bulk to capture a discount, or ahead of a season, ties up cash for weeks or months before it converts to sales. Working capital pays for the build up and is repaid out of the sales it produces.
Growth that has to be paid for first. A new hire, a marketing campaign or a second shift all cost money before they earn money. Owners often hesitate here, but a well planned push with a measurable return is one of the better reasons to borrow.
Smoothing a rough patch. A weather event, a lost client or a slow quarter can leave a sound business short for a while. Working capital can bridge the dip so you do not have to cut staff or services that you will need when conditions recover.
One time obligations. A tax bill, an insurance deductible or a permit fee can land at an awkward moment, and covering it with working capital can be cleaner than draining your reserves.
What Working Capital Is Not Good For
It is worth being clear about the limits. Working capital is poorly suited to a long lived asset. If you are buying a delivery vehicle, a commercial oven or a piece of machinery, equipment financing lets the term match the life of the asset, and the asset itself helps secure the deal. Using working capital for it can strain your cash flow for no reason.
It is also not a cure for a business that loses money every month. Borrowing to cover a structural shortfall adds a payment on top of a problem. If the underlying margins do not work, fix those first, or talk to someone about whether the business model needs to change.
And if you do not know how much you need or when, a revolving structure might fit better. A business line of credit lets you draw only what you use and reuse it as you repay, which is a better match for uncertain needs.
Working Capital Compared With Other Options
The clearest way to understand working capital is next to its neighbors.
Against a term loan: both are lump sums. Term loans, which run from $25K to $5M at fundivi, are typically used for larger investments that pay back over a longer horizon. Working capital leans toward operating needs and shorter horizons.
Against a line of credit: a line gives you standing access, working capital gives you cash now. If you know the amount you need, working capital is simpler. If you do not, a line is more flexible.
Against a business credit card: cards are fine for small, routine purchases. They are awkward for payroll, supplier wires and large inventory orders, and limits are usually modest.
Against a merchant cash advance: both are fast, and both are repaid out of business revenue. The structures differ, and the right choice depends on how your sales arrive. If your revenue is steady and daily, an advance can fit. If it is uneven or seasonal, ask about revenue based financing, where repayment moves with your sales.
Against a bank loan: a bank may offer a lower rate to a well qualified borrower, but it typically takes weeks and asks for a lot of paperwork. If the need is urgent, the delay itself can cost more than the rate difference saves.
How Fast Is Same Day, Really
Many working capital applications at fundivi are decided and funded the same business day, but that depends on a few things. The application has to be complete, it has to be submitted early enough in the business day for the review and the transfer to happen, and the information has to be consistent. Late day applications and incomplete files usually roll to the next business day.
To make same day more likely, apply in the morning, have your recent bank statements ready, and answer any follow up questions quickly. If you would like the whole picture, the how it works page walks through each stage from application to funding.
What fundivi Looks At
fundivi's underwriting engine reads your business bank activity directly. It looks at how consistently money comes in, how your balances behave through the month, whether there are frequent overdrafts, and how your revenue has moved over recent months. Credit is part of the review, and the minimum personal FICO score is 550, but a business with steady deposits and a modest score can look better than one with a high score and erratic cash flow.
The baseline requirements are 6 months in business, an active business checking account, $30K or more in monthly revenue and a 550 FICO. Meeting them does not guarantee approval, but it means you are in range.
Understanding What It Costs
Working capital is not the cheapest money you will ever borrow, and it would be misleading to suggest otherwise. You are paying for speed, convenience and a decision based on cash flow instead of collateral. The question to ask is not whether the cost is zero, but whether the return on the money, or the cost of not having it, is larger.
Two practical rules help. First, always look at the total dollars you will repay, not just a rate or a payment. Second, compare that total to what you expect the money to produce or save. A $50,000 inventory purchase that you expect to turn into $90,000 of sales within ninety days has a clear case. A $50,000 draw to cover a recurring shortfall does not.
The cost calculator lets you test different amounts and terms so you can see the total before you apply. And remember to include the cost of waiting. A slower, cheaper loan that arrives after the discount expires or the key hire has accepted another offer is not actually cheaper.
How Repayment Feels in Practice
Repayment details depend on the offer, so read yours carefully, but the general pattern is a fixed schedule over a defined term, with payments sized to your cash flow. Before you accept, confirm how often payments are taken, whether there is any penalty or discount for paying early, and what fees apply.
It also helps to map the payments against your calendar. If your largest deposits arrive at the end of the month, a schedule that pulls money at the start may pinch even when the totals are fine. A short conversation about the payment rhythm before signing can prevent a lot of stress afterward.
A Worked Example
Imagine a commercial cleaning company with $55K in monthly revenue. It wins a contract with a property management firm that will add $20K a month, but starting the contract requires hiring four cleaners, buying supplies and equipment, and covering two weeks of payroll before the first invoice is paid on net 30 terms. The total up front cost is about $38,000.
The owner has a few options. Waiting for the first payment is not possible, because the crew has to be hired first. Draining the reserve leaves the business exposed if a client pays late. A working capital loan of $40,000 covers the build out, and the new contract itself produces the revenue to repay it within months. The numbers work because the money funds a defined return, and the owner can say exactly where the repayment comes from.
Now imagine the same owner asking for $40,000 to cover a recurring monthly shortfall with no new revenue attached. The loan would solve one month and create a harder one, which is the situation to avoid.
Preparing a Strong Application
A few simple steps improve both your odds and your speed. Gather your most recent three or more months of business bank statements. Have your basic business details and ownership information ready. Know the amount you are requesting and the specific purpose. And keep your business account clean, since mixing personal spending into it makes your cash flow harder to read.
If you are unsure whether working capital is the best product, the funding product matcher asks a few questions and points to a likely fit. For a conversation about your specific numbers, you can book a consultation, and to learn about the company, visit the about page. You can also find more guides in our resources section.
Coming Back for More Later
Many owners use working capital more than once. A business that borrows, repays on schedule and returns later tends to find the second request easier, since the record speaks for itself. If your business has grown, a larger amount may be reasonable. If your needs have changed, a different product may fit better, and because fundivi is a hybrid lender that matches you first against its own capital and can bring in vetted partners when another structure fits, switching does not mean starting over with a stranger.
Frequently Asked Questions
How fast can I get a working capital loan?
Many applications are decided and funded the same business day, depending on how early you apply and how complete your file is. It is not guaranteed for every applicant.
Do I need collateral?
Working capital is evaluated mainly on cash flow instead of specific collateral. Terms vary by offer, so review the details of any agreement, including any personal guarantee.
What credit score do I need?
fundivi looks for a personal FICO score of 550 or higher, along with 6 months in business, an active business checking account and $30K or more in monthly revenue.
How much can I borrow?
Working capital at fundivi runs from $10K to $2M. The amount you qualify for depends on your revenue and cash flow.
What can I use the money for?
Operating needs such as payroll, inventory, marketing, rent, taxes and supplier payments. For a specific piece of equipment, equipment financing usually fits better.
Is working capital the same as a line of credit?
No. Working capital is a lump sum you repay over a term. A line of credit is revolving, so you draw what you need and the available amount returns as you repay.
Next Steps
If the timing of your cash is the problem, working capital may be the straightest fix. Take the 2 minute application to see what your business qualifies for, with many decisions arriving the same day.
