Name the expense
Identify the exact cost, amount and date. A supplier payment, payroll run or inventory purchase is easier to evaluate than a general feeling that cash is tight.
Flexible business funding
Working Capital for Small Business
Payroll, inventory, supplier bills and the next job rarely arrive on the same schedule as customer payments. Working capital can be one path to help your business handle a defined operating need without losing momentum.
Explore your optionsProdigy 1 Capital is not a lender. Options, eligibility and approval depend on the funding partner and your application.
Keep the timing on your side
A healthy business can still have a short-term cash gap.
Running a business means paying for today's work before every dollar from that work has arrived. You may need materials before a job is complete, payroll before invoices are paid or inventory before a busy season begins. Those costs are normal, but the timing can put pressure on an otherwise solid operation.
Working capital is most useful when the need is specific and the return is understandable. It can help a business protect an existing commitment, respond to a timely opportunity or keep ordinary operating costs from disrupting a proven plan.
Start with the business need
Use capital for the work that has a clear next step.
Connect it to revenue
Show how the funds protect a current customer commitment, support a confirmed order or keep a core part of the operation moving.
Review the full picture
Consider timing, repayment and the full cost of an offer before choosing a path. The right option should support the business, not create more pressure.
Funding products vary. Review the amount, repayment schedule, fees, requirements and any other terms from a funding partner carefully before accepting an offer.
When working capital may fit
The need is real, near-term and tied to how your business runs.
Payroll cannot wait: Your team has completed the work that keeps the business running, while a customer payment or project milestone lands later.
Inventory supports known demand: A recurring sales pattern, seasonal rush or confirmed order creates a clear reason to buy the product or materials now.
A supplier or repair affects operations: You need to protect a relationship, keep equipment operating or avoid a delay that would interrupt delivery to customers.
The opportunity has a deadline: A project, bulk purchase or customer commitment makes sense only when your business can act within a defined window.
A quick readiness check
Make the funding conversation more useful from the start.
You do not need every answer before you explore options. You do need a clear view of what the funds would do, when they are needed and how the business expects to support repayment.
Set the amount
Work from the cost in front of you. Include the full supplier bill, payroll run, inventory order or project expense instead of guessing at a round number.
Set the date
Know when the business needs the funds and what happens if the expense is delayed. Timing matters as much as the amount for a short-term operating need.
Check the cash cycle
Look at the sales, invoices, deposits or booked work that will help your business handle repayment. This keeps the decision connected to reality.
Compare the full cost
Ask about every cost and repayment expectation. Faster access can be valuable, but only when the value of acting now outweighs the cost of the option.
Common operating uses
Fund the part of the business that cannot pause.
The use of funds should be concrete. Strong working-capital decisions usually solve a specific timing issue or protect a revenue-producing activity, rather than trying to cover a problem with no defined plan.
Team and payroll
Keep employees, contractors or crew members paid while customers follow their usual payment schedule.
Inventory and materials
Buy stock, supplies or job materials when the expected sales or committed work support the purchase.
Suppliers and repairs
Handle a time-sensitive supplier payment, repair or operating cost that keeps the business able to serve customers.
Growth with a plan
Take on a known opportunity when you understand the capacity, margin and timing that make it worthwhile.
Choose the right path
Match the funding conversation to the job at hand.
Different funding paths answer different business questions. Being clear about the source of the pressure makes it easier to evaluate which option deserves a closer look.
Working capital
Consider it for a broader operating need, such as payroll, inventory, materials or a time-sensitive business expense.
Invoice factoring
Consider invoice factoring for small business when cash is specifically tied up in eligible invoices sent to customers.
Equipment financing
Consider equipment financing when the central need is a vehicle, machine, technology or other long-lasting business asset.
Before you apply
Bring the facts that explain the next move.
1
Write down the exact amount, expense and date that created the need for working capital.
2
Gather the recent business details that help explain revenue, operating activity and the reason for the request.
3
Explain how the funds would protect an existing commitment or support a realistic next opportunity for the business.
4
Review the full terms of every offer, including cost, repayment expectations and what would change if business timing shifts.
Ready to look at the next step?
Put a clear business need in front of the right options.
Start with the job the funds need to do, then explore the paths that may fit your business.
Working capital questions
Answers before you explore options.
What is working capital for a small business?
Working capital is money a business uses for everyday operating needs. A funding option may help cover a defined short-term expense, bridge a timing gap or support a revenue-producing opportunity when the timing and full cost make sense for the business.
What can small-business working capital be used for?
Depending on the funding partner and the offer, businesses may consider working capital for payroll, inventory, materials, marketing, seasonal preparation, repairs, supplier payments or other operating needs. The best use is tied to a clear business purpose and repayment plan.
Is working capital the same as invoice factoring?
No. Invoice factoring is built around eligible unpaid customer invoices. Working capital may be a better starting point when the business needs flexibility for a broader operating expense rather than cash that is specifically tied up in accounts receivable.
What should I prepare before exploring working capital options?
Start with the amount needed, the purpose, the date the cash is needed and the cash flow that would support repayment. Funding partners may request additional business and financial details before they can review an application.