FUND THE DAY-TO-DAY
Working capital
loans, explained.
Profit on paper doesn't pay payroll on Friday. Working capital financing covers the gap between money you've earned and money you can actually spend — so a slow month or a big opportunity doesn't stall the whole business.
The short version
- Working capital = the cash that runs day-to-day operations: payroll, rent, inventory, suppliers.
- It's for operating gaps and short-term opportunities, not big fixed-asset purchases.
- It's delivered through several products — lines of credit, short-term loans, and advances.
- Match the repayment to the cash it generates, and it smooths cash flow instead of straining it.
What "working capital" really means
Working capital is the money that keeps the lights on between when you spend and when you get paid. You buy inventory in March, sell it in April, get paid in May — but rent, payroll, and suppliers don't wait for May. A working capital loan covers that gap. It's fuel for the engine, not a down payment on a bigger engine.
That distinction is the whole game. Use working capital for operations and short-term moves, and finance long-lived assets — a building, a fleet, a major buildout — with longer-term products built for them.
Working capital funds the gap between earning the money and being able to spend it.
What owners actually use it for
- Making payroll through a slow stretch without missing a beat
- Buying inventory ahead of a busy season or a confirmed order
- Bridging 30-, 60-, or 90-day invoices when customers pay slowly
- Covering rent and suppliers while revenue catches up
- Jumping on a bulk discount or a rush job that pays for itself
How much can you get?
Most working capital offers are sized to your revenue — often somewhere between half and a full month's average sales, sometimes more with strong, steady deposits and a year or two of history. Lenders are really asking one thing: can the business comfortably carry the payment out of normal cash flow? The steadier your deposits, the larger and cheaper the offer tends to be.
The products that deliver it
| Product | How it works | Best when |
|---|---|---|
| Line of credit | Revolving limit; draw and repay as needed | Gaps are recurring or unpredictable |
| Short-term loan | Lump sum, fixed short payback | One defined gap with a clear payoff |
| Merchant cash advance | Advance against future sales | You need speed and have steady card volume |
A line of credit is the classic working-capital tool because it flexes — an unused line costs nothing and is there the moment you need it. For a single, known gap, a short-term loan can be cleaner.
Not sure which product fits your gap?
Tell an advisor how your cash flow moves through the month and we'll point you to the cheapest tool for the job.
Use it well, not just fast
Working capital is healthiest when the thing it pays for generates the cash to repay it — inventory that sells, a season that delivers, an invoice that lands. The warning sign is borrowing working capital to cover a gap that keeps widening month after month. If that's the situation, the fix is usually a hard look at the numbers with an advisor, not another advance.
How Titan approaches it
As a consultancy, we match the product to your cash-flow pattern and shop it to multiple lenders — so the payment fits your slowest month and you're not paying for flexibility you don't need.
Questions owners ask
What is a working capital loan?
It is short-term financing used to cover everyday operating costs — payroll, rent, inventory, suppliers — rather than long-term assets. It bridges the gap between money earned and money available to spend.
How much working capital can I borrow?
Commonly a percentage of your monthly or annual revenue. Many businesses qualify for roughly 50% to 100% of an average month's sales, though steady deposits and time in business can push that higher.
What can a working capital loan be used for?
Payroll, rent, inventory, supplier payments, covering a seasonal slowdown, bridging slow-paying invoices, or funding a short-term opportunity. It is meant for operations, not big one-time equipment or real estate buys.
What are the requirements for a working capital loan?
Generally a few months of business bank statements, consistent revenue, and time in business. Credit matters but, for revenue-based options, weighs less than your cash flow.
How fast can I get working capital?
Through Titan, often within 24 to 48 hours of approval, because underwriting leans on recent bank statements rather than a long document package.
See your working capital options in minutes
One short application shows what you qualify for across lines, loans, and advances. Soft credit check, no obligation.