A quick business funding process that offers working capital loans to business owners.
Last Updated on March 12, 2025
Shield Funding TeamShield Funding has been providing working capital loans to small business owners for twenty years. We offer competitive rates and a fast and easy loan process, with funding available as quickly as the same day. With decades of experience, we are a trusted lender dedicated to helping businesses keep smooth operations and grow.
Whether you need funding to cover payroll, purchase inventory, manage cash flow gaps, or handle unexpected expenses, our flexible loan options are created to meet your needs. We are an excellent resource for business owners who do not qualify for traditional bank loans or SBA loans, or for those who need a faster financing solution to keep their business running strong.
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What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
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A business line of credit is a lot like a credit card—you get a maximum amount of credit and can spend any amount below that repeatedly (as long as you pay it back in between withdrawals). That makes lines of credit great for day-to-day purchases like inventory, decor, or marketing. Because bar inventory usually has high turnover, you’ll be making a lot of inventory purchases. So a financing option like this can be a big help.
Since it’s always available once you’ve been approved, it’s also a big help for weathering unexpected costs. Your keg cooling system might break, for example—and you need to get it fixed as fast as possible. Or you could come across an opportunity to take part in a local event that requires some upfront cash. Again, since you’ve already been approved, you’ll have the funds on hand to take advantage.
Interest rates are relatively low—usually in the 5–10% range. And because you can get up to $250,000 of revolving credit, you can use it to build up some momentum when you grow your business. We work with borrowers who have a credit score of 650 or higher, have been in business for six months or more, and have monthly revenue of at least $10,000 for business lines of credit. We also require at least five monthly deposits.
This is a short term small business loan that you can use for any type of expense. You can use it to cover seasonal swings in business, pay a new employee, or open a completely new location. You can even receive funds the same day. Whatever you need for your business, these short term business loans will help you get it.
We offer up to $1,000,000 in funds for business owners. And with interest rates of 12–45%, you can get a better deal than you would with some traditional lenders. As long as you’ve been in business for two months, earn $8,000 or more per month, and have a credit score of 500 or more, you can qualify for one of these loans.
Our terms range from 12–36 months, so you can get the amount and terms that work for you. You can also receive funds within 24 hours directly to your account so you can take care of your business needs quickly.
We know that businesses have a tough time receiving working capital. If you try to get a loan from a traditional lender, you’ll get denied fast. We don’t think any factor should disqualify you from getting funding for your business. At Shield Funding we can approve and fund your loan within 24 hours.
So we offer short term merchant cash advances of up to $1,000,000 to business owners with credit scores above 500. You’ll pay 12–45% interest on terms up to 36 months. As long as your business has been open for a few months and you have $8,000 in monthly revenue, you can qualify and even receive funds the same day.
Apply for Working Capital Loans!
Work with a direct lender and get a working capital loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.
The U.S. Small Business Administration (SBA) has introduced the 7(a) Working Capital Pilot (WCP) program to provide small businesses with flexible, government-backed lines of credit. Effective from August 1, 2024, through July 31, 2027, this pilot program offers lines of credit up to $5 million, with terms up to 60 months, to support both domestic and international transactions.
The SBA 7(a) loan program offers long-term financing for businesses, with repayment terms extending up to 10 years for working capital, and up to 25 years for real estate. The interest rates on the 7(a) program are typically low, ranging from 11.5% to 16.5%, based on the prime rate plus a markup. In order to be eligible the applying business should be operating for profit within the U.S., meet SBA size standards, and have a reasonable amount of invested equity. You will also have to demonstrate the need for the loan, and that need should be a sound business purpose. SBA lenders have stringent requirements and thoroughly scrutinize credit scores, business revenue, and financial history. These loans are only available through SBA-approved lenders.
Working capital loans are a great way for existing business owners to get access to additional capital to run their business. Whether you need additional funds to cover payroll expenses or if you are behind on utility expenses, there are no restrictions on how you use the funding. Working capital loans range from ten thousand up to 1 million dollars and they are unsecured so you do not require collateral. These business loans require an approximate credit score of 650 and an overall fair credit history.
We also help small business owners secure working capital loans with bad credit. If you have been denied traditional financing or just do not meet the minimum credit requirements for any type of funding then our merchant cash advance can be a perfect fit. You can access the working capital you need without the strict requirements of traditional working capital loans. If you do not meet the requirements for our working capital loans you can also check out our bad credit business loans to help with your working capital needs if you do not process credit cards.
A working capital loan helps businesses cover short-term expenses and maintain smooth operations. It can be used for payroll, rent, utilities, and inventory purchases, ensuring employees are paid and essential costs are covered. Businesses also use these loans for marketing, equipment repairs, and bridging cash flow gaps, especially during seasonal fluctuations. They can fund expansion efforts, unexpected expenses, and short-term growth opportunities as well. Since these loans are designed for operational needs, they are not typically used for long-term investments like real estate.
Before applying for a working capital loan, it’s important to clearly define why you need the funds. Are you covering payroll, purchasing inventory, managing seasonal cash flow, or handling unexpected expenses? Understanding your specific financial need will help you determine the right loan amount and repayment terms. Additionally, consider whether the loan will provide a strong return on investment, such as boosting sales or maintaining business stability during slow periods. Choosing the right loan for your needs ensures you don’t take on unnecessary debt.
Before committing to a loan, assess your business’s cash flow and ability to repay. Look at your monthly revenue, expenses, and profit margins to determine how much you can realistically afford in loan payments. Be mindful of the interest rates, fees, and repayment terms, as these will impact your financial health. Taking on too much debt can strain your business, while a manageable loan can help stabilize operations and support growth. It’s crucial to ensure that your loan payments won’t negatively affect daily operations or put unnecessary pressure on your cash flow.
Working Capital loans are a great funding option if you require cash for your daily business operations and you do not qualify for traditional business loans. Although working capital loans can be more expensive than traditional financing, the ease and speed at which you can receive funding can make it a very attractive alternative, especially if you need to cover immediate expenses such as payroll or inventory costs. A working capital loan has its pros and cons, but the advantages definitely outweigh the disadvantages if you are trying to grow your business.
Several factors determine the approval of a working capital loan. Your credit history is reviewed, but it carries less weight compared to other types of business loans. Instead, lenders prioritize your business details, such as how long you’ve been in operation, your business health, banking activity, and the consistency of your monthly cash flow. Other factors like industry type, seasonal revenue trends, and overall financial stability are also considered to assess your ability to repay the loan.
The amount you qualify for in a working capital loan mostly depends on your monthly revenues and business bank deposits. Usually approval amounts can reach up to 70% or more of your average monthly deposits. For example, if your business has monthly gross deposits of $50,000, you might qualify for a loan of around $35,000 or more. Lenders check out your business’s financial health to determine the maximum amount you can receive, focusing on stable cash flow and deposit consistency.
Once your loan is funded, repayments are usually made through daily or weekly debits from your business bank account over the agreed payback period. For daily repayment plans, debits are scheduled on a five-day business week, excluding weekends and holidays. For weekly repayment plans, one debit is made each week for the agreed amount. This structure allows lenders to collect payments in small, manageable increments, helping businesses maintain cash flow while repaying the loan.
The cost of our working capital loans depends on the factor rate and length of time you receive the loan. An example of a typical working capital loan package would be to receive $20,000 for 12 months at a factor rate of 1.15. That would make the additional cost above the loan amount $3,000, so your total pay back amount would be $23,000. Your payment amounts would vary depending on whether you have daily or weekly payments.
This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.
When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.
Working capital loans come in several forms, including term loans, lines of credit, invoice financing, and merchant cash advances. Term loans provide a lump sum with a fixed repayment schedule, while lines of credit offer flexible access to funds. Invoice financing allows businesses to borrow against unpaid invoices, and merchant cash advances provide funds based on future credit card sales.
A working capital loan is designed to address short-term operational needs, such as covering payroll or buying inventory. A business term loan, on the other hand, is typically used for long-term investments like purchasing equipment, expanding facilities, or funding major projects. Working capital loans usually have shorter repayment terms and faster approval processes.
Yes, many lenders offer working capital loans to businesses with poor credit, focusing more on cash flow and revenue than credit scores. Alternative financing options like merchant cash advances or invoice factoring may also be available to businesses with less-than-perfect credit.
Working capital loans can help businesses grow by providing funds for immediate opportunities, such as purchasing additional inventory to meet increased demand, launching a new marketing campaign, or hiring temporary staff during peak seasons. By addressing short-term cash flow gaps, these loans allow businesses to focus on growth without financial interruptions.
Interest rates for working capital loans vary based on factors like the lender, loan type, and borrower’s qualifications. Rates can range from as low as 6% for highly qualified borrowers to upwards of 30% for alternative financing options like merchant cash advances. Understanding the terms and comparing lenders can help you find the best rate for your needs.
