What are my working capital loan options?

Working capital financing covers day-to-day operating needs — payroll, inventory, rent, and timing gaps between paying suppliers and getting paid. The main options are a business line of credit (flexible, draw as needed), a short-term loan (lump sum, fixed payoff), revenue-based financing (repaid as a share of sales), and invoice factoring (advance against unpaid invoices). The right one depends on how predictable your need is and how fast you need the cash.

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 one lender partner whose underwriting fits.

Sources

The Federal Reserve's Small Business Credit Survey reports that covering operating expenses and uneven cash flow are leading reasons small businesses apply for financing. — Federal Reserve — Small Business Credit Survey
The SBA's CAPLines program provides lines of credit specifically to finance small businesses' short-term and seasonal working-capital needs. — SBA — CAPLines
The CFPB recommends comparing the total cost of credit across options before choosing a financing product. — CFPB — Consumer & Small Business Finance

Key takeaways

Working capital financing covers operating needs and cash-flow timing gaps, not long-lived assets.
Line of credit (recurring), short-term loan (one-time), revenue-based financing (speed), factoring (slow invoices).
Match the product to how predictable and how urgent the need is.
ClearValue Lending routes your file to the single partner whose terms fit best.