Working capital: what can be presented to lenders?
A working-capital need is presented to commercial lenders from your deposits, not from a business plan. The lender sizes it and sets its cost, in its written offer.
Choose my amountThe answers
- What counts as a working-capital need?
- Payroll before a client pays, inventory ahead of the season, a slow month, a supplier to settle. The need is described from your statements, not from a business plan.
- How is the amount set?
- You choose an amount between $15,000 and $500,000 as an estimate of the need. The lender sets the final amount and its cost in its written offer.
- Does the business need to be profitable on paper?
- Not necessarily. Commercial lenders read the deposits that go through the business account and how regular they are; the financial statements come second.
- Can a working-capital advance be renewed?
- Some lenders offer it once part of the balance is repaid; others do not. Each lender decides, and says so in its written offer.
What the lender looks at
- Actual deposits, month by month
- The deposits of the last few months size what the business can carry.
- Trend over the period
- A dip the lender can explain weighs less than a steady decline.
- Days in overdraft
- Time spent below zero says how tight the working capital already is.
- Payments to other lenders
- An advance already running comes off what a new lender can offer.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
Choose my amount