Payroll is due Friday. The transmission supplier wants payment on delivery. The auction runs Tuesday whether your last three deals have funded or not. Working capital is the oxygen of an automotive business - and a working capital loan is the tank you keep for when the room gets thin.
Used well, short-term capital is a profit tool: it catches opportunities and bridges timing gaps. Used badly, it's a treadmill. This guide is about knowing the difference before you sign.
The main working capital products
| Product | Typical size | Speed | Best for |
|---|---|---|---|
| Term loan | $25K - $500K | 1-3 days | A defined project with a defined payback |
| Line of credit | $10K - $250K | 1-5 days | Recurring gaps - draw, repay, redraw |
| Revenue-based advance | $10K - $500K | Same day - 2 days | Fast capital when credit is thin (costlier) |
| Invoice factoring | % of receivables | 24-48 hrs | B2B businesses waiting on slow payers |
What it really costs
Short-term working capital prices in a wide band: strong-profile borrowers see 10-20% APR on term products, while revenue-based advances can carry factor rates of 1.15-1.45 - which, annualized on a short term, is expensive money. That's not automatically bad. Expensive capital that nets you a profitable outcome beats cheap capital that arrives after the opportunity is gone.
The test is simple: name the specific use, the specific return, and the specific payback source before you borrow. 'Buy 6 units at Tuesday's sale, retail them at $1,800 average gross inside 45 days' is a plan. 'Smooth out cash flow' is a warning sign.
Match the term to the asset
Finance fast-turning uses (inventory, a marketing push) with short money, and long-lived assets (equipment, buildouts) with long money. The classic mistake is funding long-term needs with short-term loans and refinancing forever.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Qualifying is lighter than you think
Decisions typically come back in hours. Funding in 24-48 hours is standard; same-day happens regularly on clean files.
- 6+ months in business
- $15,000+ in monthly revenue deposited to a business account
- 3-6 months of bank statements (the underwriting workhorse)
- Credit matters less than cash flow - many programs approve scores banks won't touch
Straight answers, multiple offers
Dealerun matches your file to working capital partners who fund automotive businesses every day. You compare real offers - amount, term, total payback - side by side, with a specialist on the phone who'll tell you honestly when the cheaper product is the better call. 4.8/5 specialist rating for a reason.
See your working capital options
Two minutes to apply. Offers within hours. Funding in as fast as 24 hours.
FAQ
How fast can I get a working capital loan?+
On a clean file with bank statements ready: approval in hours, money in 24-48. If you anticipate needing capital, apply before the crunch - approvals are strongest when your account balances look healthy.
Will applying hurt my credit?+
Checking your options through Dealerun uses a soft pull - no score impact. A hard inquiry happens only if you accept a specific offer that requires one, with your consent.
Line of credit or term loan - which should I take?+
Recurring, unpredictable gaps favor a line (you pay interest only on what you draw). A one-time, defined project favors a term loan (predictable payment, often cheaper). Plenty of businesses hold a small line for emergencies and take term loans for projects.
Get a callback from a funding specialist
Real questions, straight answers - no scripts, no pressure.
No credit impact. We never sell your information.
Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.