Qualifying for a Working Capital Loan: What you need to know before.

To qualify for a working capital loan, you may need to meet some of the following requirements:

1. Be in business for at least 3 to 6 months

2. Have a gross revenue of at least $10,000 to $50,000 per year

3. Have an active bank account and use invoicing software

4. Have a credit score of at least 625 to 690

5. Have a clean record of bankruptcies and criminal history

6. Have a down payment of at least 10%

7. Have ample collateral or a paid franchise fee.

A franchise fee is a fee or charge that a franchisee pays a franchisor for the right to use the franchise brand and system.

It can be a one-time or ongoing payment, depending on the franchise agreement.

The franchise fee covers the costs of licensing, training, marketing, support, and other benefits provided by the franchisor.

The franchise fee can vary from business to business and is regulated by the Federal Trade Commission in the United States.

(1) Franchise fee – Wikipedia. https://en.wikipedia.org/wiki/Franchise_fee.
(2) What is a Franchise Fee? A Comprehensive Overview – HubSpot Blog. https://blog.hubspot.com/sales/franchise-fee.
(3) What Does It Cost To Buy A Franchise? – Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/12/08/what-does-it-cost-to-buy-a-franchise/.
(4) Franchise Fee: What Is It? – LiveAbout. https://www.liveabout.com/franchise-fee-1350571.
(5) What is a Franchise Fee: Everything You Need to Know – UpCounsel. https://www.upcounsel.com/what-is-a-franchise-fee.

These requirements may vary depending on the lender and type of loan you are applying for.


(1) Working Capital Loan: A Complete Guide – Camino Financial. https://www.caminofinancial.com/working-capital-loan/.
(2) What is a working capital loan and how does it work?. https://www.bankrate.com/loans/small-business/what-is-a-working-capital-loan/.
(3) Best Working Capital Loans Of 2023 – Forbes Advisor. https://www.forbes.com/advisor/business-loans/best-working-capital-loans/.
(4) What are the Working Capital Loan Eligibility Criteria – HDFC Bank. https://www.hdfcbank.com/personal/resources/learning-centre/borrow/working-capital-loan-eligibility.
(5) Working Capital Loan Requirements: What You Need to Know. https://www.mulliganfunding.com/blog/working-capital-loan-requirements-what-you-need-to-know/.
(6) The Best Working Capital Loan Options and How to Get Them – Fundera. https://www.fundera.com/business-loans/guides/working-capital-loans.