---
title: What is a working capital loan?
description: "A working capital loan is a short-term loan that helps a business cover its daily operational expenses, such as payroll, inventory, and other operational expenses"
url: "https://yazodo.com/help/business-loan/what-is-a-working-capital-loan/"
updated: "2025-12-03"
category: Business Loan
tags:
  - Application Process
  - Business Loan
  - Types of Business Loans
---

# What is a working capital loan?

A working capital loan is a short-term loan that helps a business cover its daily operational expenses, such as payroll, inventory, and other operational expenses