Dispatched · Topic
Working Capital
Working capital is the cash you need to keep the truck moving between settlements — fuel, repairs, payroll, insurance premiums, off-season survival. This topic covers MCAs (and why most owner-operators should avoid them), term loans, asset-based lending, lines of credit, the working-capital-vs-factoring-vs-MCA decision matrix, and head-to-head reviews of the major small-business capital providers. Built around the math of effective APR and the contract terms most carriers do not read before they sign.
Glossary terms
- Asset-Based Lending — Revolving credit facility secured by accounts receivable, equipment, or inventory; typical for fleets with $5M+ annual revenue.
- EIN — Employer Identification Number issued by the IRS to identify a business entity for tax purposes; required for most trucking authority filings.
- Line of Credit — Revolving credit facility allowing the carrier to draw funds as needed up to an approved limit; pays interest only on drawn balance.
- Merchant Cash Advance — Lump-sum cash advance against future business revenue, typically with daily ACH deductions; high effective APR but easier qualification than term loans.
- SBA Loan — Small Business Administration-guaranteed loan with longer terms (up to 10–25 years) and lower rates than conventional commercial loans.
- Term Loan — Lump-sum business loan repaid over a fixed schedule with interest; the standard structure for equipment purchases and major capital expenditures.
- Working Capital — Short-term unsecured business funding used to bridge cash-flow gaps, cover operating expenses, or capitalize on opportunities; APR typically 14–34%.
Blog posts
- Building business credit as an owner-operator — Most new owner-operators run on personal credit. Building separate business credit unlocks better financing terms — but only if you do it deliberately. Here's the path.
- Factoring vs working capital: when to use which — Factoring and working capital solve different cash-flow problems. Conflating them leads to operators paying for both when they only need one. Here's the decision framework.
- SBA loans for owner-operators: eligibility, timeline, and the trade-off — SBA 7(a) and SBA 504 loans offer commercial financing rates 3-7 points lower than non-SBA alternatives — but the application process takes 60-90+ days. Here's when it's worth it and when it isn't.
- Working capital vs factoring vs MCA: the decision matrix — Operators in cash-flow stress often use working capital, factoring, AND MCA simultaneously — paying for three products when one would solve the problem. Here's the decision matrix.
Comparisons
- Bluevine vs OnDeck — Two small-business working-capital lenders compared on trucking-specific terms.
Research reports
- State of Trucking Capital 2026 — Annual report on the working-capital, equipment, and factoring markets serving owner-operators and small fleets.
Verticals & money pages
- Truck Repair Loans — Emergency capital for major truck repairs — engine, transmission, after-market — to keep the truck earning.
- Trucking Working Capital — The Dispatched matching flow for trucking working capital, term loans, and lines of credit.
Ready to put it to work?
This topic page indexes everything Dispatched has published on working capital. If you are ready to move on financing, factoring, or insurance, start the matching flow.