# Working capital cheat sheet: what lenders look for and how the terms work

URL: https://cheapcheapwebsites.com/cheat-sheets/working-capital/
Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/working-capital-loans/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
A working capital loan is a lump sum used for everyday business costs like inventory, payroll, repairs or marketing, repaid on a fixed schedule. Merchant Fund Express's published guidelines commonly start around $17,500 a month in revenue, 6+ months in business and 600+ credit. Choose a loan when you know the amount and the use; choose a line of credit when needs come and go.

## At a glance
- Typical amounts: Varies with revenue; MFE reviews $5,000 to $5,000,000
- Revenue guideline: Commonly from about $17,500 a month
- Time in business: Often 6+ months
- Credit: Commonly 600+; scores from 500 considered for other products
- Repayment: Fixed daily, weekly or monthly payments over a set term
- Speed: Same-day decisions common on complete files; funding often the next business day, never promised
- Documents: 3 to 4 months of bank statements, ID, voided check; larger requests may need financials or tax returns
- Best for: A known one-time need: inventory, equipment repair, a hire, a project
- Avoid if: Needs are unpredictable and recurring; a line of credit may fit better

## Before you apply: checklist
- Write down the exact use and amount needed
- Check your average monthly revenue against the $17,500 guideline
- Confirm your time in business from your formation or first deposit date
- Check your credit score before you apply
- Pull 3 to 4 months of business bank statements
- Prepare financial statements or tax returns for larger requests
- Test the payment against your slowest recent month
- Ask for the total repayment amount in writing

## What working capital loans cover
Working capital is the money that keeps the business running between when you pay costs and when customers pay you. Common uses: Inventory ahead of a busy season Payroll during a slow stretch or while hiring Repairs to vehicles or equipment Marketing campaigns with a clear expected return Covering a gap while waiting on a large customer payment For the full rundown, read our working capital loans guide .

## Terms and requirements
Terms vary by product and file. Short-term working capital is often repaid over months, not years, with daily or weekly payments. MFE's published guidelines for a working capital loan commonly start around $17,500 a month in revenue , 6+ months in business and 600+ credit . These are guidelines, not approval rules. Large working capital requests, into the hundreds of thousands or more, usually need extra documents such as profit and loss statements, balance sheets and business tax returns. Plan for that before you apply. See the funding amounts cheat sheet for how revenue maps to size.

## Working capital vs line of credit
Feature Working capital loan Line of credit How you receive money One lump sum Draw what you need, when you need it Payments Fixed schedule on the full amount Based on what you have drawn MFE guideline revenue About $17,500 a month About $17,500 a month MFE guideline time and credit 6+ months, about 600+ 1+ year, about 650+ Best for A known, one-time need Recurring or uncertain needs More in working capital vs line of credit .

## Illustrative example: weekly payment vs weekly revenue
Illustrative example Item Amount Monthly revenue $45,000 Average weekly revenue ($45,000 x 12 / 52) $10,384.62 Loan amount $80,000 Assumed total repayment $96,000 Cost of funds ($96,000 minus $80,000) $16,000 Weekly payment over 52 weeks ($96,000 / 52) $1,846.15 Payment as share of weekly revenue About 17.8% Assumptions: a 12-month term, weekly payments, no fees beyond the stated total. These figures are illustrations, not offers. Real pricing and terms depend on your file. Common mistakes: Borrowing for a vague purpose with no plan to repay. Using short-term money for a multi-year project. Ignoring the slow month when testing the payment. Applying with missing statements, which slows everything down.

## How Merchant Fund Express handles this
Merchant Fund Express reviews working capital requests from $5,000 to $5,000,000. If you fall short of the loan guideline, an MCA may still fit, since its guideline commonly starts at about $7,500 a month. Read the MFE working capital loans page and apply with Merchant Fund Express . Service is in English and Spanish.

## Frequently asked questions
**What credit score do I need for a working capital loan?** MFE's guideline for a working capital loan is commonly 600+. Scores from 500 are considered across MFE's products, and stronger credit usually means better offers. Deposits and time in business also weigh heavily.

**How fast can I get working capital?** Same-day decisions are common on complete files, and funding often follows the next business day. It is never promised. Large requests that need financial statements usually take longer.

**Can I use a working capital loan for payroll?** Yes, payroll is a common use, especially during a slow stretch or a hiring push. Make sure the slow stretch is temporary and the payment still fits once revenue returns to normal.

**What counts as large working capital?** Requests in the hundreds of thousands and up. These usually need profit and loss statements, balance sheets and business tax returns in addition to bank statements. MFE reviews requests up to $5,000,000.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=working-capital