Are working capital loans a good idea?

They can be. A working capital loan is a common way to fund short-term needs and can help businesses get through slow periods or jump on new business opportunities. But the loan still needs to be affordable enough to fit into your budget to avoid losing your business or personal assets.

What credit score is needed for a working capital loan?

There are working capital options for borrowers with virtually any credit score. For business lines of credit or SBA loans, you'll typically need a credit score of 620 or higher. Merchant cash advance providers or invoice factoring companies often accept lower credit scores.

How do I prequalify for a business loan?

Prequalification involves answering a series of questions about yourself and your business to determine your eligibility before you formally apply for a loan. Here are the general steps: Visit the lender's website and fill out the prequalification form. Provide information about yourself and your business. View your loan options and compare offers. Once you've narrowed your options based on your prequalification offers, you can formally apply for a loan with the lender of your choice.