What credit score do I need?

Credit is the lender's underwriting. PeerSense does not set a FICO floor. Factoring prices the customer, not your FICO. Tell us about the book.

Do I need collateral?

Factoring advances against B2B invoices. Originator tapes need a real book and loss history. Consumer cards are a pass.

What can I use it for?

Factoring turns B2B invoices into cash. Originator warehouse and forward flow fund a book that already buys. This is not payroll paper for a restaurant cooler.

How much does it cost?

Factoring is priced per 30 days on face. Originator tape is quoted on the book. No five day close slogan and no 24 hour payday rate card.

What is the factoring floor?

Standard factoring on this desk is $20 million a month in B2B invoices. Below that is not this desk.

Can a startup get this?

A startup with no B2B book and no tape is a pass. Focus is originators at $100 million a month. Will look at $10 million a month. $10 million is not the focus.

Working CapitalB2B invoices from $20 million a month

This desk does not sell $7,500 payday working capital. The live box is B2B factoring from $20 million a month in invoices, and originator tapes from $100 million a month.

Consumer cards are a pass. Thin debtors are a pass. Talk to PeerSense on the file in front of you.

$20M/mo

Factoring floor

$100M/mo

Originator focus

80 to 95%

Advance of face

Talk to PeerSense Call (317) 452 6990

How do working capital loans work?

Working capital on this desk is B2B factoring from $20 million a month and originator tapes from $100 million a month. SBA is search. $7,500 five day paper is a pass.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

How Working Capital Loans Work

A working capital loan is any form of business financing used to fund day to day operations rather than long term investments like real estate or major equipment. The core idea is simple: your business needs cash to operate between the time you spend money (on inventory, payroll, marketing, supplies) and the time you collect revenue from customers. Working capital financing fills that gap.

Unlike SBA loans or commercial real estate loans that fund long term assets, working capital loans are typically short term (3 to 18 months) and designed to be repaid quickly as revenue comes in. The application process reflects this: lenders focus more on your recent cash flow, bank statements, and revenue trends than on long term projections or extensive business plans. Most working capital lenders want to see 3 to 6 months of bank statements, proof of revenue, and a minimum credit score.

The repayment structure varies by product type. Term loans have fixed daily or weekly payments. Lines of credit let you draw and repay as needed, only paying interest on what you use. Merchant cash advances take a percentage of daily credit card or bank deposit volume, so payments flex with your revenue. Invoice factoring advances you cash against outstanding invoices and collects directly from your customers.

At PeerSense, we do not operate as a marketplace where dozens of lenders bid on your deal. Instead, we evaluate your situation during a single conversation, identify the one or two programs that genuinely fit, and make a direct introduction to the lender. This means less noise, faster decisions, and no stacking of multiple high cost products that can crush a business.

Tell Us Your Situation

15 minute call covering your revenue, credit, timeline, and funding need

Talk to PeerSense

The desk reads the file and names the product that fits. The capital source sets the terms.

Direct Lender Intro

One introduction to the right lender. No bidding, no spam.

Get Funded

Talk to PeerSense. No five day close.

Live public boxes

Search for working capital lands here. The desk works these boxes. Not $7,500 in five days.

B2B Invoice Factoring

Customer credit, not yours$20 million a month

Advance 80 to 95 percent of face
B2B invoices only
Consumer cards are a pass
Talk to PeerSense on the book

Originator Tape

Focus is $100 million a monthWill look at $10 million a month

$10 million a month is not the focus
Forward flow and warehouse
Originators, not brokers stacking paper
Talk to PeerSense on the tape

CMBS and Bridge

Cash in about 35 percent$10 million and up

Stabilized CRE and bridge to takeout
Hotel is search only
No $7,500 working capital bait
Talk to PeerSense on the file

Data Center / CRS

Signed or guaranteed hyperscaler lease$1 billion to $30 billion plus

Up to 89 percent of contracted lease value
15 year lease signed or guaranteed by a hyperscaler
A file without that offtake is not this box
Talk to PeerSense on the campus

Comparing Working Capital Options

There is no single "best" working capital product. The right choice depends on your credit profile, how fast you need funding, and how you want to repay. Here is how the four main options compare.

Product	Amounts	Terms	Cost	Speed	Min Credit	Best For
B2B Invoice Factoring	$20 million a month and up	Ongoing as invoices clear	Priced per 30 days on face	After the factor is on the book	Customer credit	B2B operators with creditworthy debtors
Originator Tape	Focus $100 million a month	Forward flow or warehouse	Quoted on the tape	Mandate, not a slogan	Track record on the book	Originators doing $100 million a month
CMBS / Bridge	$10 million and up	10 year CMBS or bridge to takeout	Quoted on the file	Underwriting, not a slogan	Cash in about 35 percent	Stabilized CRE and bridge
Short-term MCA	Not this desk	Not this desk	Not this desk	Not this desk	Not this desk	Not a PeerSense live box

B2B Invoice Factoring

Amounts$20 million a month and up

TermsOngoing as invoices clear

CostPriced per 30 days on face

SpeedAfter the factor is on the book

Min CreditCustomer credit

Best ForB2B operators with creditworthy debtors

Pros: Scales with the book. Consumer cards are a pass.

Cons: Below $20 million a month is not this desk.

Originator Tape

AmountsFocus $100 million a month

TermsForward flow or warehouse

CostQuoted on the tape

SpeedMandate, not a slogan

Min CreditTrack record on the book

Best ForOriginators doing $100 million a month

Pros: Will look at $10 million a month.

Cons: $10 million a month is not the focus.

CMBS / Bridge

Amounts$10 million and up

Terms10 year CMBS or bridge to takeout

CostQuoted on the file

SpeedUnderwriting, not a slogan

Min CreditCash in about 35 percent

Best ForStabilized CRE and bridge

Pros: Institutional boxes. Hotel is search only.

Cons: Sub $10 million is not the public CRE box.

Short-term MCA

AmountsNot this desk

TermsNot this desk

CostNot this desk

SpeedNot this desk

Min CreditNot this desk

Best ForNot a PeerSense live box

Pros: None on this desk.

Cons: $7,500 five day working capital is a pass.

Not sure which product fits? We will walk you through it in a 15 minute call.

Get a Free Consultation

Qualification Requirements

Requirements vary by program type, but here are the general minimums lenders look for when underwriting working capital loans. Meeting these does not guarantee approval, but falling short on more than one usually means exploring alternative products.

Credit Score

Credit is the lender's underwriting. PeerSense does not set a FICO floor.
Each program prices credit, cash flow, and collateral differently.
MCA and revenue based programs look at deposits and sales.
Invoice factoring: Based on customer credit

Time in Business

Minimum 6 months for most programs
12+ months preferred for lines of credit
2+ years for the best rates and terms
Startups: consider SBA microloans or equipment financing

Revenue

$20 million a month in B2B invoices for factoring
$25K+/month for lines of credit
Consistent deposits (no large unexplained gaps)
Revenue trend matters more than absolute number

Documentation

3 to 6 months of business bank statements
Government issued ID
Voided check or bank letter
Business tax returns (for larger amounts)

Collateral

Unsecured options available. Lenders still underwrite credit.
Some programs require a blanket UCC lien
Personal guarantee common on most programs
Asset based lending if you have inventory/AR

Common Disqualifiers

Active bankruptcy or recent discharge
Outstanding tax liens (unresolved)
Negative bank balance trends
Existing MCA stack with no consolidation path

What this desk actually works

People search working capital and land here. The live boxes are below. $7,500 five day paper is a pass.

B2B Invoice Factoring

Floor$20 million a month

Advance80 to 95 percent of face

FeePriced per 30 days

Customer credit, not yours. Consumer cards are a pass. Invoice factoring.

Originator Tape

Focus$100 million a month

Will look$10 million a month

Not the focus$10 million a month

Who funds MCA originators.

CMBS and Bridge

Floor$10 million and up

Cash inAbout 35 percent

HotelSearch only

CMBS and bridge.

Real files on this desk

Factoring from $20 million a month. Originators at $100 million a month. CMBS and bridge from $10 million. Data center from $1 billion with a hyperscaler lease. Tiny paper sits.

Manufacturer AR book

Manufacturing / Distribution

A manufacturer billing OEMs and distributors on net 45 to net 60 with $20 million a month in B2B invoices. Factoring advances 80 to 95 percent of face against approved commercial payers.

Product:B2B invoice factoring

Amount:$20 million a month

Staffing payroll vs net 45

Staffing / Professional Services

A national staffing firm with $20 million a month in commercial invoices. Weekly payroll, client pays net 45. Factoring funds the book. A $60K gap is a pass.

Product:B2B invoice factoring

Amount:$20 million a month

MCA originator warehouse

Specialty finance originators

An originator already buying. Focus is $100 million a month. The desk will look at $10 million a month. $10 million is not the focus. The book has to already be buying.

Product:Originator warehouse

Amount:$100 million a month

Energy and logistics AR

Oilfield / Logistics

Oilfield services or logistics billing operators and shippers at $20 million a month. Approved commercial payers. Consumer cards sit.

Product:B2B invoice factoring

Amount:$20 million a month

Stabilized CRE refinance

CMBS / Bridge

Stabilized income property from $10 million. Cash in about 35 percent. CMBS if the asset is already there. Bridge if occupancy still has work.

Product:CMBS or bridge

Amount:$10 million and up

Hyperscaler contracted lease

Data center / CRS

$1 billion to $30 billion plus. Signed lease by a major hyperscaler, or backed and guaranteed by one. Up to 89 percent of contracted lease value on a 15 year lease.

Product:Contracted revenue sale

Amount:$1 billion to $30 billion plus

Have a situation that does not fit neatly into these examples? That is normal. Most deals are unique.

Describe Your Situation

When to Use Working Capital vs. SBA

Honest comparison: SBA offers better terms, working capital offers speed. Match the product to the urgency.

Factor	Working Capital	SBA Loans
Funding Speed	Not a five day slogan	45 to 90 days
Interest Rate	Higher (15% to 40%+)	Lower (Prime + 2.75% to 6.5%)
Documentation	Minimal	Extensive
Credit Requirements	Lender underwriting	Lender underwriting
Loan Amount	$20 million a month factoring	Up to $5M (MARC, 7(a))
Repayment Terms	3 to 18 months (typical)	Up to 10 to 25 years
Collateral	Often unsecured	Usually required
Best For	Urgent cash flow gaps	Long term growth capital

Choose Working Capital When:

You need cash and cannot wait on SBA
You have an urgent opportunity or expense
You need a short term bridge
You want minimal documentation

Choose SBA When:

You can wait 45 to 90 days for funding
You want the lowest possible rate
You need long term repayment (10 to 25 years)
You're funding growth or equipment

Need help deciding which option is right for your business?

Learn More About SBA Working Capital Options

Originator Tape, Not Payday MCA

This desk does not sell 24 to 48 hour merchant cash advances. Originators who already buy at $100 million a month can talk about warehouse and forward flow. Consumer MCA stacking is a pass.

Speed & Access

No 24 hour payday paper. Mandate, not a slogan
Based on monthly revenue, not credit score or collateral
$20 million a month in B2B invoices
Minimal documentation, 3 to 6 months bank statements, ID, voided check
Credit is lender underwriting. MCA programs price cash flow and deposits. PeerSense does not set a FICO floor.

How Repayment Works

Daily or weekly automatic debits from your business bank account
Revenue based models flex with your income, slower months mean lower payments
Factor rates of 1.1x to 1.5x, borrow $100K, repay $110K to $150K total
Typical repayment period: 3 to 12 months
No prepayment penalty on most programs

Best For These Industries

Retail

Restaurants

E Commerce

Service Businesses

Salons & Spas

Important: Understand the True Cost

MCA and revenue based financing carry effective APRs of 20% to 50%+. A 1.3x factor rate on a $100K advance means you repay $130K total. If repaid in 6 months, the effective APR exceeds 60%. These products should be used for short term, high ROI needs only, not as ongoing working capital.

Stacking multiple MCAs is one of the most common causes of business cash flow collapse. If you already have an MCA and need to refinance or consolidate, talk to us first before taking on additional debt.

Need Cash Fast? Start With a Free Deal Scan.

Tell us your revenue, credit profile, and timeline. We will match you with the right product, whether that is a line of credit, invoice factoring, or revenue based financing. No cost, no commitment, no spam.

Run a Free Deal Scan Call (317) 452 6990

5 minute assessment No obligation Free to use

Related Financing Options

Working capital is not always the right answer. Sometimes a different product structure gets you better terms, lower costs, or a better fit. Explore these alternatives.

SBA Loans

Lower rates, longer terms, government backed. Best for businesses that can wait 45 to 90 days and want the cheapest capital available.

Learn more

Invoice Factoring

Turn outstanding B2B invoices into immediate cash. Approval based on your customers' credit, not yours.

Learn more

Asset Based Lending

Borrow against inventory, equipment, or accounts receivable. Higher amounts available for asset rich businesses.

Learn more

Equipment Financing

Finance or lease specific equipment with the equipment itself as collateral. Preserves working capital for operations.

Learn more

Does this file sit in the live box?

Originators, factoring, CMBS, bridge, data center. Public floors first.

Check the box

Frequently Asked Questions

B2B invoice factoring from $20 million a month, and originator tapes from $100 million a month. CMBS and bridge from $10 million. $7,500 five day paper is a pass.

Need Working Capital? Let's Talk.

PeerSense connects you with the right working capital solution for your business. One conversation. Direct introduction.

Talk to PeerSense Call (317) 452 6990

Disclaimer: PeerSense sources capital through a curated network of commercial lenders and capital sources. All rates, terms, market data, and estimates shown on this page are approximate and subject to change based on market conditions, borrower qualifications, property specifics, and lender discretion. Nothing on this website constitutes financial, legal, or investment advice. Individual results vary. All information should be independently verified. Past performance and market data do not guarantee future results. Consult with qualified legal and financial professionals before making any financing decisions.

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
Edward L. Freeman founded PeerSense in January 2020.
In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed October 2, 2026LinkedIn profile About Edward Freeman

Working CapitalB2B invoices from $20 million a month

This desk does not sell $7,500 payday working capital. The live box is B2B factoring from $20 million a month in invoices, and originator tapes from $100 million a month.

Consumer cards are a pass. Thin debtors are a pass. Talk to PeerSense on the file in front of you.

$20M/mo

Factoring floor

$100M/mo

Originator focus

80 to 95%

Advance of face

How Working Capital Loans Work

Tell Us Your Situation

15 minute call covering your revenue, credit, timeline, and funding need

Talk to PeerSense

The desk reads the file and names the product that fits. The capital source sets the terms.

Direct Lender Intro

One introduction to the right lender. No bidding, no spam.

Get Funded

Talk to PeerSense. No five day close.

Product

Amounts

Terms

Cost

Speed

Min Credit

Best For

B2B Invoice Factoring

$20 million a month and up

Ongoing as invoices clear

Priced per 30 days on face

After the factor is on the book

Customer credit

B2B operators with creditworthy debtors

Originator Tape

Focus $100 million a month

Forward flow or warehouse

Quoted on the tape

Mandate, not a slogan

Track record on the book

Originators doing $100 million a month

CMBS / Bridge

$10 million and up

10 year CMBS or bridge to takeout

Quoted on the file

Underwriting, not a slogan

Cash in about 35 percent

Stabilized CRE and bridge

Short-term MCA

Not this desk

Not a PeerSense live box

What this desk actually works

People search working capital and land here. The live boxes are below. $7,500 five day paper is a pass.

B2B Invoice Factoring

Floor$20 million a month

Advance80 to 95 percent of face

FeePriced per 30 days

Customer credit, not yours. Consumer cards are a pass. Invoice factoring.

Originator Tape

Focus$100 million a month

Will look$10 million a month

Not the focus$10 million a month

Who funds MCA originators.

CMBS and Bridge

Floor$10 million and up

Cash inAbout 35 percent

HotelSearch only

CMBS and bridge.

Factor

Working Capital

SBA Loans

Funding Speed

Not a five day slogan

45 to 90 days

Interest Rate

Higher (15% to 40%+)

Lower (Prime + 2.75% to 6.5%)

Documentation

Minimal

Extensive

Credit Requirements

Lender underwriting

Loan Amount

$20 million a month factoring

Up to $5M (MARC, 7(a))

Repayment Terms

3 to 18 months (typical)

Up to 10 to 25 years

Collateral

Often unsecured

Usually required

Best For

Urgent cash flow gaps

Long term growth capital

Frequently Asked Questions

B2B invoice factoring from $20 million a month, and originator tapes from $100 million a month. CMBS and bridge from $10 million. $7,500 five day paper is a pass.