What are my working capital loan options?

What working capital financing is for

Working capital is the cash that keeps daily operations running — covering payroll, inventory, rent, and the lag between paying suppliers and collecting from customers. It funds recurring or short-term needs, not long-lived assets like real estate or heavy equipment (those fit a term loan or equipment financing instead). The Federal Reserve's Small Business Credit Survey consistently finds that covering operating expenses and managing uneven cash flow are among the most common reasons small businesses seek financing.

The main options

• Business line of credit — a revolving limit you draw and repay as needed; best for recurring or unpredictable gaps because you only pay for what you use
• Short-term loan — a lump sum repaid over months; best for a defined one-time need
• Revenue-based financing — capital repaid as a share of sales; best when speed and flexible qualification matter more than the lowest rate
• Invoice factoring — an advance against unpaid invoices; best when slow-paying customers are the cash-flow bottleneck
• SBA CAPLines — an SBA line-of-credit program designed specifically for working-capital and seasonal needs

How to choose

If the need is recurring or hard to predict, a line of credit usually costs the least over time because you only pay on the balance you draw. If it's a single defined expense, a short-term loan is cleaner. If you need cash in days or can't yet clear a bank credit bar, revenue-based financing trades a higher cost for speed and flexible approval. If unpaid invoices are the real problem, factoring targets that directly. ClearValue Lending evaluates your file and routes it to the funding partners whose underwriting fits.