Working capital structured around your cash cycle.
Strong businesses run short of cash for one simple reason: the money goes out before it comes back in. We design capital around that gap, built so the work in front of you isn’t stuck waiting on the work you’ve already done.
Capital Source has been funding founder-led and operator-run businesses since 2015 and manages over $500 million in active funding programs. Our working capital programs run from $50K to $8M, with rates from WSJ Prime + 2.75% for qualified businesses and decisions as fast as 24 to 48 hours once we have what we need. We look beyond FICO at how the business actually performs, and we have no SIC-code restrictions, so your industry shapes the structure rather than the answer.
What is working capital financing?
Working capital financing is capital structured to cover the gap between paying for the work and getting paid for it. Every operating business carries that gap: payroll, materials, and inventory go out today, while invoices and seasonal revenue arrive weeks or months later. Working capital financing bridges the timing so operations keep moving at full speed.
Banks often struggle with this need. Their process can take months, their terms are built from a template, and they tend to require the kind of credit history or operating track record that growing companies haven’t accumulated yet. The need itself is usually immediate and temporary, which is exactly the shape bank financing handles worst. What the moment calls for is just-in-time, flexible capital: an amount matched to the gap, on terms matched to how the cash comes back. That is what we structure.
Who is working capital financing for?
It’s for businesses whose sales are real but whose cash arrives on someone else’s schedule. Mid-sized companies with strong revenue and slow receivables. Seasonal operators who buy inventory months before the selling season pays for it. Founders whose growth is outrunning the credit line a bank sized two years ago. If the business performs and the constraint is timing, working capital financing is built for you.
When do businesses use working capital financing?
The trigger is almost always a mismatch between when cash leaves and when it returns. These are the situations we structure around most often.
Payroll timing
The team gets paid every two weeks; your customers pay in 45 days. Working capital is designed to absorb the difference, so payroll doesn’t have to hinge on a collections call.
Seasonal inventory build
Buying for the peak season means spending months before the revenue lands. Capital sized to the build, repaid as the season sells through.
Slow receivables
The work is delivered and the invoices are good, but Net 30 turns into Net 60. Financing against expected cash flow keeps the delay from becoming the business’s problem.
A growth opportunity
A large order, a new contract, a supplier discount worth taking. Opportunities have deadlines, and capital that arrives after them isn’t capital.
A capped bank line
The bank sized your line to an older, smaller version of the business and won’t revisit it. We size to where the business is now and where it’s headed.
Our working capital solutions
One gap, several ways to bridge it. Each program below is structured around a different way cash moves through a business; the right one depends on yours.
Cash Flow Loans
A cash flow loan is an advance on the cash flow your business expects to receive, repaid from that future cash flow. A direct answer to a temporary shortage or a time-sensitive opportunity.
Business Line of Credit
Revolving capital for the recurring gap between expenses due and income arriving. Draw what you need, repay, and draw again as the cycle turns.
Inventory Line of Credit
A line established on the strength of your sales and used to purchase inventory as it’s needed. You control the draw and repay as inventory sells, keeping stock decisions from waiting on cash.
Inventory Financing
Capital secured by the inventory itself, built for businesses where having the right stock at the right time is the whole game. Purchase delays cost customers; this prevents them.
SBA 7(a) Financing
Government-guaranteed financing with longer terms, suited to working capital needs that are structural rather than seasonal. Worth the longer process when the fit is right.
Revenue-Based Funding
Payments structured as a percentage of revenue, so the obligation flexes with sales. Strong months move faster and slower months breathe.
Find the structure that fits your cash cycle.
Tell us how your business earns and collects, and we’ll show you what a working capital structure built around it could look like.
What do we evaluate?
We look beyond FICO at how the business actually performs: revenue rhythm month to month, the deposits flowing through your accounts, the quality and aging of your receivables, and the length of your cash cycle. A credit score describes the past; those signals describe the operating business we’d be funding. No figure decides alone, and we explain the structure and terms before you commit to anything.
If you want the longer version, read about how we operate, how we think about a supportable borrowing base, and how we stress-test working capital before we propose it. The short version: we underwrite the business, not the template.
How does the process work?
- Apply online or talk to our Deal Desk. Start with the application or a conversation, whichever you prefer. Either way we begin with what the capital needs to do.
- We review how the business performs. Revenue rhythm, deposits, receivables, cash cycle. We’ll tell you up front what we need and where things stand.
- We propose a structure. Amount, program, and terms matched to your cash cycle, explained in plain language before you commit to anything.
- Funding. Once terms are accepted, capital moves and the work it was meant for gets underway.
Frequently asked questions
What counts as working capital financing?
Working capital financing is any structure that funds day-to-day operations rather than a long-term asset: cash flow loans, business lines of credit, inventory lines, SBA 7(a) loans, and revenue-based funding all qualify. The common thread is that the capital covers the gap between paying for the work and getting paid for it.
How much working capital can my business access?
Our working capital programs run from $50K to $8M. Where a business lands in that range depends on underwriting: revenue rhythm, receivables, cash cycle, and what the capital is for. We propose a structure and explain the terms before you commit.
What does Capital Source evaluate?
We look beyond FICO at how the business actually performs: revenue rhythm, bank deposits, receivables quality, and the length of your cash cycle. We have no SIC-code restrictions, so your industry shapes the structure rather than the answer.
How fast can I get a decision?
Decisions can come as fast as 24 to 48 hours once we have what we need. Timelines vary with the structure and the completeness of your file, and all funding is subject to underwriting.
What if my bank declined me?
A bank decline is not the end of the conversation. Banks underwrite to a template; we underwrite to the business. If the underlying business performs, we look for a structure that supports it, and if we can’t help, we’ll tell you that plainly too.
Capital in motion starts with a conversation.
Apply online and we’ll review how your business performs, or reach the Deal Desk and walk through your cash cycle with a person who structures deals every day.
See What Your Business May Qualify For
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