Working Capital Loans
Fast and Accessible Capital Loans
Every business faces moments when cash flow doesn't align with expenses. Whether you need to cover payroll, manage inventory, or fund a new commercial opportunity, a working capital loan provides the short-term financing you require. Fincap connects small and medium-sized businesses across Canada with flexible working capital loan solutions. Apply online and receive a response within 24 to 48 hours.
What is a Working Capital Loan?
Working capital represents the difference between a company's current assets and current liabilities. It measures how much cash is available to cover daily operations and short-term financial obligations.
A working capital loan helps businesses bridge the gap when income doesn't match expenses. Instead of waiting for customers to pay invoices or for sales to pick up, you borrow funds to keep operations running smoothly.
These loans are typically used for:
- Payroll and employee expenses
- Rent and utilities
- Inventory purchases
- Accounts payable
- Seasonal fluctuations in revenue
Unlike equipment financing or commercial real estate loans, working capital loans are designed for short periods and focus on operational needs rather than asset acquisition.
The Benefits of Working Capital Loans
1. Access funds when cash flow is tight
Most businesses experience gaps between paying expenses and receiving income from customers. A working capital loan covers those gaps so you can maintain operations without delay.
2. Support growth and large orders
When a new commercial opportunity requires upfront spending, waiting for bank approval can cost you the deal. A business loan for working capital lets you fund projects quickly and take on bigger contracts.
3. Fast approval process
Fincap typically provides a response within 24 to 48 hours. No long wait times, no complex paperwork. Apply online and get the funds your business requires.
4. Flexible repayment options
Repay over 9 to 12 months with daily or weekly payments that align with your sales cycle. This structure helps small businesses manage cash flow without large monthly hits.
Get the best equipment financing conditions for your business needs
Explore our fast, easy and straightforward options to help your business grow.
What Can You Finance with a Working Capital Loan?
Working capital loans cover a wide range of operational expenses. Here are common uses among small and commercial businesses in Canada:
1. Day-to-day operations
- Payroll and employee wages
- Rent, utilities, and office supplies
- Insurance and recurring fees
2. Inventory and stock
- Purchasing inventory before peak season
- Restocking products to meet customer demand
- Raw materials for manufacturing
3. Fast approval process
- Paying suppliers while waiting for customer payments
- Covering accounts payable to maintain vendor relationships
- Managing invoice gaps during slow periods
4. Growth and opportunities
- Marketing and advertising campaigns
- Hiring temporary staff for seasonal needs
- Taking on larger orders that require upfront investment
Whatever your business requires, this type of business loan provides the funds to keep moving forward.
3 easy steps for your Equipment Financing needs
The Fincap leasing experience is simple, quick, and customized to your financial needs.
Whether it be an individual's private sale or equipment listed by a dealer, there are numerous options available.
Click the Apply Now button and begin filling out your application!
Get a response within 24 to 48 hours.
Secured vs Unsecured Working Capital Loans
When you apply for a working capital loan, lenders will typically offer two options: secured or unsecured. Understanding the difference helps you choose the right solution for your business.
1. Secured working capital loans
A secured loan requires collateral to guarantee repayment. This can include business assets such as equipment, inventory, real estate, or accounts receivable.
Because the lender has something to recover if you default, secured loans often come with lower interest rates and higher borrowing limits.
Best for: Established businesses with assets who want to borrow larger amounts at competitive rates.
2. Unsecured working capital loans
An unsecured loan does not require collateral. Instead, approval is based on your business income, credit history, and overall financial health.
These loans are faster to obtain but typically come with higher interest rates to offset the lender's risk.
Best for: Small businesses or newer companies that need quick access to funds without pledging assets.
Which option should you choose?
Fincap works with over 30 lenders across Canada to match your business with the right type of loan, whether secured or unsecured.
Who Qualifies for a Working Capital Loan in Canada?
Working capital loans are accessible to a wide range of businesses. Requirements are typically more flexible than traditional bank loans.
Common eligibility criteria:
- At least 6 to 12 months in business
- Consistent monthly sales or income
- 3 to 6 months of bank statements
- Personal or business credit history (low scores considered)
Many loans are unsecured, meaning no collateral is required. For larger amounts, lenders may ask for a personal guarantee or a lien on business assets.
Working Capital Loan Terms and Rates
Terms and rates vary depending on your business profile, the loan amount, and the lender. Here's what to expect when you apply through Fincap.
Unlike traditional bank overdraft facilities, working capital loans offer a fixed repayment schedule. This helps businesses plan expenses and manage cash flow without surprises. Want to know your estimated payments? Use our financing calculator or contact our team for a personalized quote.