Working Capital Is the Most Common Reason Small Businesses Seek Financing

Working capital was the most frequently cited intended use of funds among ClearValue Lending applicants (913 responses), ahead of expansion (559), equipment (279), inventory purchases (235), and repair/maintenance (187). Payroll was the least common of the 12 published categories (44 responses); a further 3 smaller categories, combined n=27, fell below the 20-response publish threshold.

The dominance of working capital and expansion over equipment or inventory suggests most applicants on this platform are managing cash-flow timing or growth financing rather than funding a single discrete purchase — consistent with the kind of short-term, flexible financing (MCA, revenue-based, short-term loans) alternative lenders specialize in.

https://clearvaluelending.com/reports/stats/smb-financing-use-of-funds-2026