Working Capital for Small Business

Working capital for small business is funding used to cover daily expenses, and options include unsecured lines of credit up to $150,000 and merchant cash advances up to $500,000. The right option depends on your credit score, revenue, and how fast you need the money.

Quick Summary

• Two main options: SLOC (credit-based, $50K-$150K, 720+ credit) or MCA (revenue-based, $15K-$500K, $15K+/month revenue)
• SLOC has 0% intro period (12-24 months) and no business history required
• MCA funds in 24-48 hours with no credit minimum, ideal for established businesses needing fast cash
• Neither product requires collateral
• You can qualify for both if you meet each product's criteria

What is Working Capital for Small Business?

Working capital for small business refers to the funds used to cover daily operational expenses, such as payroll, inventory, and rent. It is essential for small businesses to have a steady flow of working capital to ensure continuity and growth. Without it, even profitable businesses can run into serious cash flow problems.

How Do I Qualify for an Unsecured Business Line of Credit?

To qualify for an unsecured business line of credit, you typically need a 720+ credit score, no collateral, and no business history. This type of funding is ideal for small business owners who have been rejected by banks due to lack of credit history or collateral. SMB Funding Group offers $50,000 to $150,000 with 0% interest for 12-24 months as a revolving line of credit, and funding arrives in 7-14 days.

What is a Merchant Cash Advance?

A merchant cash advance is a type of funding that provides businesses with a lump sum of cash in exchange for a percentage of their future sales. This type of funding is ideal for businesses with steady monthly revenue and can provide $15,000 to $500,000 in working capital.

How Do I Qualify for a Merchant Cash Advance?

To qualify for a merchant cash advance, you typically need a minimum of $15,000 in monthly revenue, 6+ months in business, and a credit score as low as 500. This type of funding is ideal for businesses that have a steady stream of revenue and need quick access to cash, often funded in just 24-48 hours.

What are the Benefits of an Unsecured Business Line of Credit?

The benefits of an unsecured business line of credit include:

• 0% interest for 12-24 months (SLOC)
• No collateral required
• No business history needed
• Funding from $50,000 to $150,000
• Funded in 7-14 days
• Revolving access to funds as you repay

Which Working Capital Option is Right for My Business?

Here is how to think about it:

• If your credit score is 720 or higher and you want 0% interest: consider the unsecured line of credit
• If your credit score is between 500 and 679 and you have $15K+/mo in revenue: consider the merchant cash advance
• If you need cash in under 48 hours: the MCA is the faster option
• If you are a newer business or startup: the SLOC requires no business history, making it accessible from day one

Frequently Asked Questions

• What is the interest rate for an unsecured business line of credit? The unsecured line of credit from SMB Funding Group offers 0% interest for 12-24 months.
• How long does it take to get funded with a merchant cash advance? A merchant cash advance can be funded in as little as 24-48 hours after qualification.
• Do I need collateral to qualify for an unsecured business line of credit? No, you do not need collateral to qualify. That is one of the main advantages of this product.
• What is the minimum credit score required to qualify for a merchant cash advance? The minimum credit score to qualify for a merchant cash advance is 500.
• How much funding can I get with a merchant cash advance? You can get $15,000 to $500,000 in funding with a merchant cash advance, depending on your monthly revenue.
• Can I apply if my business is brand new? Yes. The unsecured business line of credit requires no business history, so new businesses can apply.

Ready to See Your Options?

If you are a small business owner looking for working capital, SMB Funding Group has two fast and flexible solutions. Whether you need the flexibility of a revolving line of credit or the speed of a merchant cash advance, you can find out which option fits your situation in minutes.

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