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1West guide: Cash flow

Working capital for cash flow gaps in restaurants, construction, clinics and daycares

Working capital financing gives an established business cash for payroll, inventory and bills when revenue arrives later than costs.

Cash flow is the most common reason owners look for funding. This 1West guide explains three products 1West lists for it: unsecured working capital approved on cash flow, revolving lines of credit, and accounts receivable financing that uses client invoices as collateral.

Last updated: Published by 1West, the financing company this guide covers

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Which financing is best for a cash flow gap?

It depends on the shape of the gap. A one-time gap, such as a slow season or a large order, fits a lump-sum working capital loan. A gap that repeats every month fits a line of credit. A gap caused by clients paying invoices late fits accounts receivable financing. 1West lists all three.

Working capital at a glance

Definition

What working capital financing is

Working capital is the money a business uses for day-to-day operations: rent, payroll, utilities and inventory. 1West describes its unsecured working capital as financing approved based on your cash flow, with no assets or collateral required. Its lines of credit offer flexible access to cash as a revolving source of capital, and its accounts receivable financing lets you get approved using funds due from clients as collateral, keeping your cash free.

Numbers

Published figures on why businesses borrow

  • 56% of small businesses borrow to meet operating expenses and 46% to pursue expansion, per Fora Financial.
  • Small banks had the highest full-approval rate at 57%, per the same source.
  • 1West A/R financing: rate as low as 5%, $10K to $10M, about 2 weeks to fund (November 2026).
  • 1West general baseline: $20,000 monthly revenue, six months in business, 600+ FICO.

What cash flow gaps look like by industry

1West comparison: cash flow gaps and financing fit by industry
IndustryTypical gapOften fitsIndustry guide
RestaurantSlow season, menu refit, surprise repairsWorking capital or line of creditRestaurant equipment financing
ConstructionPayroll and materials before milestone paymentsA/R financing or line of creditConstruction business loans
Medical practicePayroll while payer claims settleLine of credit or working capitalMedical equipment financing
DaycareWeekly payroll against monthly tuitionLine of creditDaycare business loans

Should you apply? A four-question check

  1. Is the gap temporary?

    Financing works best when you can name the revenue that will repay it.

  2. Can the payment fit?

    Run the payment through the calculator using a conservative month of revenue.

  3. Do you meet the baseline?

    Six months in business, $20,000 monthly revenue, 600+ FICO and four months of statements.

  4. Is a secured option possible?

    If you are buying equipment or hold invoices, compare those offers too; they may cost less.

How we chose what to include

Products were compared on the shape of the cash flow gap they fit. Product descriptions come from 1west.com; borrowing statistics come from Fora Financial. No approval odds or rates beyond 1West's published figures are stated.

This guide was written and published by 1West, the financing company it covers. It is not an independent review. Read the full methodology.

Working capital questions

Is working capital or equipment financing better for buying equipment?

1West says that because the equipment serves as collateral, equipment financing rates tend to be lower than many other funding forms, and some businesses that would not qualify for unsecured loans can be approved. That usually makes it the better fit for one asset. Unsecured working capital fits payroll, inventory or mixed uses.

More answers in the FAQ

What is the difference between a line of credit and a term loan?

A term loan gives you a lump sum repaid on a fixed schedule. A line of credit is a revolving source of capital: you draw what you need, repay it and draw again. 1West describes its lines of credit as flexible, easy access to cash when you need it, which suits recurring cash flow gaps better than a one-time loan.

More answers in the FAQ

When does accounts receivable financing make sense?

Accounts receivable financing fits businesses that wait on client invoices, such as contractors paid on project milestones. 1West describes it as getting approved using funds due from clients as collateral, which keeps your cash free. 1West lists amounts of $10K to $10M with about two weeks to fund, as of November 2026.

More answers in the FAQ

How does the 1West application work?

You apply once online through 1West's Automated Business Lending Engine, called ABLE, which 1West says accepts applications 24/7. ABLE matches your business with lenders whose programs fit your credit, revenue and needs, and 1West pairs that automation with expert guidance. You then compare offers side by side and decide whether to accept one.

More answers in the FAQ

How to get business funding with bad credit?

Lead with what you can prove: revenue, steady deposits and client invoices. Collateral-backed products such as equipment financing or accounts receivable financing weigh assets and receivables, not only credit. Pay down revolving balances and dispute report errors before applying. 1West generally requires a 600+ FICO score, a useful benchmark to work toward.

More answers in the FAQ

How can you reduce your total loan cost?

Borrow only what the project needs, choose the shortest term your cash flow can carry, and compare total repayment across offers rather than the headline rate. A larger down payment, stronger credit and clean bank statements can also help. 1West publishes its own guide to reducing total loan cost, and its ABLE platform lets you compare offers side by side.

More answers in the FAQ

Can I apply for more than one financing type at once?

With 1West you submit one application, and ABLE matches your business with lenders and products that fit your profile. That lets you see, for example, equipment financing and working capital offers side by side. Taking on several products at once can strain cash flow, so borrow only what you can comfortably repay.

More answers in the FAQ

Close the gap with the right product

Apply once with 1West and compare working capital, credit line and receivables offers side by side.

Start your 1West application

Financing is subject to lender approval and final terms.

Sources cited on this page