Working Capital Financing

What is working capital financing?

Working capital is the money a business uses to run day to day — payroll, rent, inventory, suppliers, and other operating costs. Working capital financing provides funds for those short-term needs, rather than for a long-term asset such as a building or a major piece of equipment.

It can be structured in different ways depending on the business and the funding source — for example, a lump sum repaid on a set schedule, or revolving access through a business line of credit. Your advisor helps you understand which structures fit your situation and how they compare on cost, speed, and terms.

Common uses

• Covering payroll and operating expenses through slower months
• Buying inventory ahead of a busy season or a large order
• Bridging the gap between paying suppliers and collecting from customers
• Taking on a new contract or project that requires upfront spending
• Funding hiring, marketing, and other growth initiatives
• Handling unexpected expenses without draining reserves

Who it may fit

Working capital financing is often a fit for established, revenue-generating businesses whose cash needs rise and fall with seasons, contracts, or payment cycles. As a preliminary guide, many of the operators Enthrone works with have two or more years in business, roughly $25,000 or more in monthly revenue, and approximately 600+ personal credit.

Those are indicators, not requirements. A newer business, lower recent revenue, or credit that is still being rebuilt doesn't automatically rule you out — it simply means an advisor should review your details personally. See who we can help.

What information may be needed

Requirements vary by program. For many working-capital requests the list is short, and it often includes:

• Recent business bank statements, including all pages
• A photo ID for each owner with 20% or more ownership
• A voided business check or a bank letter showing the business account

Larger requests may also call for business tax returns, a year-to-date profit and loss statement, and a schedule of your existing debt. You'll only be asked for what a given option actually requires, and documents are collected through a secure upload link — never through this website's forms.

How long does it take?

It depends on the program, the amount, and how quickly documentation is provided. Some working-capital options move quickly; larger transactions take longer. Your advisor will give you a realistic picture for your specific situation.