Working Capital Loans for Small Businesses – Best Working Loans 2020

Before you access any working capital loan for your small business you must make sure that the loan delivers the money your business needs and at a reasonable rate. The best working capital loans for small businesses 2020 should offer you flexible repayment terms on top of a rock-bottom APR.Working Capital Loans for Small Businesses - Best Working Loans 2020

Since loan rates and repayment terms are unique to each borrower, depending on credit score, business income, as well as a host of other factors that each lender will weigh differently, thus finding the best working capital loan for your business, you will have to get multiple quotes.

Here, we bring you our choice picks for the best working capital loans.

Best Working Capital Loans for Small Businesses 2020


Kabbageworkingcapital loans are crafted for business owners who need quick funding, but may not have a well-established credit history. Apart from accessing your credit score, Kabbage reviews factors like your revenue and shipping data to give you instant access to a line of credit up to $150,000.

Note also that you would be charged a relatively high-interest rate between 32 and 108%, and you will still be accommodated even if you have a low credit score that maybe happened as a result of poor money management and missed bill payments.

The repayment terms can either be for six months or over a year. Instead of paying an interest rate, you’ll pay a monthly fee ranging anywhere from 1% – 12% of what you have borrowed, which can be anywhere from $1,000 – $150,000, as long as you have been in business for at least a year and you have $50,000 or more in annual revenue.

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Working Capital Loans for Small Businesses

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Borrowing Limit


APR Range

32 – 108%

Minimum Credit Score


Who is Kabbage For:

It is an ideal option for business owners who have less established credit, but strong performance indicators, like strong sales and shipping data.

Who Should Not Apply:

If you have a good credit score, you can have a lender who can offer you a better APR. Also, the $150,000 cap on borrowing may be limiting for businesses that require more funding.


If you are looking for a working capital loan that can offer you up to $150,000 at 7.99 – 29.99% APR, then Foundation is definitely what you need. It works with already established businesses that require a rapid infusion of funds. To qualify for this loan, you must have at least two years of business history, three or more employees, as well as annual revenue of over $100,000.

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Businesses that meet the Fundation requirements, stand a chance of borrowing up to $150,000 in working capital, with a repayment plan of one or two years. If you need more time to repay, there’s also an offer of long-term loans up to $500,000, which can be paid off in one to four years. You get to repay your loan via automatic debit twice a month. Also if you can pay it off ahead of schedule, you’ll have no re-payment penalty.

Borrowing Limit


APR Range


Minimum Credit Score


Who is Fundation For:

Businesses that have been established for two or more years, with a history of solid financials that need working capital for large inventory purchases or other immediate cash flow requirements.

Who Should Not Apply?

New businesses that have been in business for less than two years. Fundation also needs a UCC – 1 blanket lien on your business assets instead of collateral, thus if you are not comfortable with that, you might consider another lender.


Ondeck is best for borrowing up to $500,000 at approximately 30-50% APR, and if you have a credit score of at least 600, Ondeck will most likely be able to offer you the lowest interest rate. Ondeck has less stringent borrowing requirements but still offers competitive interest rates approximately 30-50% for a term loan.

With Ondeck, you can also potentially borrow nearly five times as much: up to $500,000. It accommodates borrowers who have been in business for at least 1 year, and have over $100,000 in annual revenue.

This lender requires either daily or weekly repayments with anywhere between three months to three-year terms.

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Borrowing Limit


APR Range

Term Loan: approximately 30-50%

Minimum Credit Score


Who is Ondeck For?

For those who borrow more than $100,000, but do not have a strong credit score.

It is also an ideal choice for businesses with constant cash flow.

Who Should Not Apply?

Businesses that have been established with good credit, who can find lower APRs and more flexible repayment terms elsewhere.

Ondeck has a restricted industry list, which places certain limits on what types of businesses they can lend to.

Also if your business revenue is more seasonal, then Ondeck is not a good option for you.


You can leverage on a working capital loan if your business is experiencing a temporary finding gap and you do not have time. This is because with it you have the fastest, simplest application process, quick funds disbursement and they are generally willing to lend to newer businesses with less established credit.

But like we always advise, it is always best to do your research before you commit to any loan offer, because making the wrong choice could hurt your business. Thus it is best to search carefully.

About Chris Git

I am an SEO person with over five years of experience. I am mostly into product lunch and review. I feed on tech, Dring Tech, and Dream tech. My hobby is knowing how everything works. You are welcome to my world of content development and product review at I am also a financial analyst with an organization. It has been my sincere interest to help people solve their issues on credit cards. There are lots of questions in the mind of many credit card users. These range from which credit card is best? How many credit cards should I have?

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