Business
Working Capital: What It Costs and What to Check
Published September 24, 2026 · Last updated September 26, 2026
Advertiser disclosure: AssistQuote may be paid when you visit or do business with a partner through our links. The provider sets your price. How we make money
The short answer
Working capital is money to cover day-to-day costs like payroll, rent and stock. Options include short-term loans, lines of credit and merchant cash advances. Merchant cash advances are fast, but they are often the most expensive.
Enter your ZIP code to see what to compare. You don't need to give us your name or phone number.
- No phone number neededSee costs and options before you share any contact details.
- Real price ranges, with sourcesWe name where every number comes from and when it was published.
- You choose who to contactWe show options. You decide if, when and who to reach out to.
We never ask for a Social Security number, date of birth or documents.
What affects your working capital cost
Price range
Costs vary a lot by product and lender, so we don't list one number. In a 2026 Federal Reserve survey, 60% of small businesses that borrowed from online lenders said the cost was higher than they expected. Not a quote, offer or approval. Your cost comes from the lender. Source: Federal Reserve Small Business Credit Survey, 2026.
Your main options
- Short-term loan. A set amount you pay back over months.
- Line of credit. Borrow what you need, when you need it, up to a limit.
- Merchant cash advance (MCA). You get cash now. The company takes a cut of your future card sales, often every day, until it's paid back plus a fee.
How to read a factor rate
Many cash advances show a "factor rate" instead of an APR. Here's the math:
- Borrow $10,000 at a factor rate of 1.3.
- You pay back $13,000. That's $3,000 in cost.
- If you pay it back in 6 months, the yearly cost is far higher than the "30%" it seems to be.
What to ask before you choose
- "What's the APR, or what's the total I'll pay back?"
- "How often do payments come out?" Daily payments can squeeze your cash flow.
- "Is there a discount if I pay early?" With many cash advances, there isn't.
- "Do I need a personal guarantee?"
The catch: taking a second cash advance to pay off the first is called "stacking." It can trap a business in debt fast. If you need cash often, a line of credit from a bank or credit union usually costs much less. Apply before you're in a pinch.
Related pages
People comparing this often look at Business Loans, Equipment Financing, Lines of Credit, Business Formation, Merchant Processing.
Why AssistQuote is different
On some websites
They ask who you are first
Some forms want your name and phone number before they show you anything useful. You may not know which companies will get it, or how many will call.
Here, you choose
Answer a few questions without giving your name, email or phone number. See prices, what to ask, and providers to explore. You choose who to contact and what to share with them.
- 1
Check local costs
See typical price ranges for your area and what moves the price up or down.
- 2
Tell us what you need
Answer a few questions about the work, not about who you are.
- 3
You decide what's next
Save or email your options, or visit a provider when you're ready.
Cost information is not a live rate, quote or offer. A provider shown here is not an endorsement. Each provider sets its own prices, privacy and contact rules.
Questions people ask
Ready to see working capital options in your area?
Start with your ZIP code. You will see typical local costs and options to explore. No phone number, email or name needed to look.
You choose if, when and who to contact.
Related services
Business Loans
Explore term financing options for your business.
Equipment Financing
Explore financing options tied to business equipment.
Lines of Credit
Explore revolving credit options for business expenses.
General Liability
Compare general liability options for your business.