Working Capital Loans
Working capital with a fixed schedule and a same-day decision
A working capital loan is fixed-payment financing sized to a defined short-term gap. CanFund models the gap directly from deposit and outflow data, then structures a term that closes it without over-funding the business.
- Amount
- $10,000 – $500,000
- Term
- 3 – 24 months
- Cost of capital
- Simple interest, 9% – 36% APR
- Speed
- Same-day decision, funding in 1 business day
Underwriting
How working capital loans is underwritten and priced
What the model reads
Rolling 90-day net cash position, payroll cadence, recurring debits, seasonality across prior years where history exists, and the size and timing of the gap you describe in the application.
How the payment is sized
The model targets a debt service coverage floor against modeled forward cash flow of 1.25x. If the requested amount breaches that floor, the system returns a smaller approved amount or a longer term rather than declining outright.
How pricing is set
Rate is a function of coverage headroom, deposit stability, time in business, and existing obligations. Prepayment reduces total interest because interest is simple, not precomputed.
Mechanics
How the structure operates, step by step
- 01
Gap defined
You state the use of funds and the period the gap covers.
- 02
Cash flow modeled
Forward cash position is projected from your uploaded bank statements.
- 03
Term structured
Amount and term are set to keep coverage above the floor.
- 04
Fixed schedule runs
Weekly or monthly ACH payments on a published amortization schedule.
Eligibility snapshot
What qualifies for this product
- Time in business
- 12+ months
- Annual revenue
- $180,000+
- Personal credit
- 580+ FICO
- Bank statements
- Last 3 months required
- Collateral
- None; personal guaranty applies
Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.
Restaurants, clinics, contractors, and online sellers — funded every day.
Questions
Working Capital Loans questions, answered directly
- What is a working capital loan used for?
- A working capital loan funds short-term operating needs rather than long-lived assets: making payroll through a slow month, buying inventory ahead of a season, covering the gap between paying suppliers and collecting from customers, or bridging a delayed receivable. It is not intended for real estate, long-term equipment, or acquisitions, which are better matched to longer amortization.
- How fast can working capital be funded?
- Decisions are returned the same day for complete applications, with a current average of 4m 12s from statement upload to decision. Approved files signed before the afternoon cutoff typically fund within 1 business day. Files requiring manual document review take longer.
- Is a working capital loan cheaper than a merchant cash advance?
- For a business that qualifies for both, a working capital loan is usually the lower total cost of capital because interest is simple and stops accruing when the balance is repaid. A merchant cash advance carries a fixed factor rate that does not decline with early delivery. The advance is often the only option for businesses under 12 months old or with irregular deposit patterns.
- Can I repay a working capital loan early?
- Yes. Interest is simple and accrues on the outstanding balance, so repaying early reduces total interest paid. CanFund does not apply prepayment penalties on working capital loans.
More questions are answered on the full FAQ.
Related products
Get a priced working capital loans offer
Connect a business bank account to see structure, cost, and total dollar obligation before signing anything.