Capital based on how your business earns.

Capital Source has been funding businesses since 2015 and manages over $500 million in active funding programs, with working capital programs from $50K to $8M and no SIC-code restrictions. When you ask us about a cash flow loan, you’re talking to the financing source, not a referral form. We underwrite on how the business actually performs, and we’ll tell you plainly whether this structure fits.

What is a cash flow loan?

A cash flow loan is short-term financing borrowed against the revenue your business expects to receive, and repaid from that revenue as it arrives. Collateral is typically not required. Instead, the loan is underwritten on the strength of your earnings: revenue, bank deposits, recurring sales, and your demonstrated capacity to repay.

That underwriting basis is exactly why we look beyond FICO. A credit score tells us about the past; your deposit history and revenue rhythm tell us how the business performs right now. It’s the same lens we describe in our insight on reading a business through its operating cycle.

One honest note up front: because the term is short and there’s no collateral securing it, a cash flow loan generally costs more than long-term bank debt. It earns that premium when the need is temporary and the payoff is near. We’ll never position it as a substitute for cheaper capital you can actually get.

Who is a cash flow loan for?

Cash flow loans fit businesses with strong, consistent revenue but limited hard collateral. Service firms whose value walks out the door every evening, B2B companies waiting on receivables, and seasonal operators between peaks all earn well without owning much a traditional lender can lien. If your bank statements look healthier than your balance sheet, this structure was designed for you.

When does a cash flow loan make sense?

What should you know before you borrow?

Cash flow lending has trade-offs, and we’d rather you hear them from us before you sign than discover them after. Three things every borrower should understand:

• Liens and personal guarantees. Because these loans are typically unsecured, some structures include a general lien (UCC filing) on the business, and some include a personal guarantee, which can put your personal assets at risk. We’ll show you exactly what’s attached to your structure before you commit.
• Automatic repayment. Repayment usually runs through automatic ACH debits, often daily or weekly. Most businesses handle that fine, but if your cash flow swings widely, a fixed debit landing on a thin day can strain the account. We’ll walk you through exactly how remittance works before you commit.
• Percentage-of-revenue alternatives. For businesses with uneven sales, remittance set as a percentage of revenue can be easier to manage, since the payment flexes with what you actually collect. That’s the logic behind our revenue-based funding structures.

What do we evaluate when you apply?

We evaluate revenue consistency, bank deposits, time in business, and repayment capacity. There’s no collateral schedule to appraise, so the file is about performance: how reliably money comes in and whether it comfortably covers the proposed payment. We look beyond FICO, and with no SIC-code restrictions your industry shapes the structure rather than the answer. Qualification is always conditional on underwriting, and we’ll tell you up front what we need and where you stand.

How does the process work?

Apply online or start with a conversation. We review how the business earns, deposits, and repays, then come back with a structure built around that picture. Decisions can come as fast as 24 to 48 hours once we have what we need, and before anything funds we walk you through the term, the remittance schedule, and any lien or guarantee in plain language.

Is a cash flow loan the right structure, or is something else?

A cash flow loan is built for temporary needs with a high expectation that near-term revenue will cover repayment. It is not a fix for persistent cash flow problems; leaning on short-term debt to plug a structural gap only compounds the gap. If your situation points elsewhere, we’ll say so and structure accordingly:

• Working capital financing: the parent family of structures built around your full cash cycle, from $50K to $8M.
• SBA 7(a) financing: a lower-cost, longer-term option when you qualify and the need isn’t urgent.
• Revenue-based funding: remittance as a percentage of revenue, so payments flex with sales.
• Business line of credit: revolving capital you draw, repay, and draw again as needs recur.

Frequently asked questions