Working capital is usually a short-term lump sum for a defined use: payroll through a slow month, a seasonal inventory build, a supplier deposit. You take the money, you pay it back, you are done. It is a poor fit for buying a building and a poor fit for a need that repeats every month forever.
A business line of credit is a reusable limit. You draw, repay, and draw again. Interest typically sits on the outstanding balance, not the full commitment. That is the right tool when inventory and receivables move in a cycle and you are tired of opening a new short-term loan every quarter.
Pick working capital when
- The use is one-time and you can point to the repayment.
- You would rather have a known payoff date than an open facility.
Pick a line when
- The same gap keeps showing up — suppliers, invoices, seasonality.
- You want the facility in place before you need it.
If unpaid invoices and inventory are the real collateral story, look at asset-based lending instead of stretching an unsecured line. If the money is for a machine, use equipment financing. Wellesley Collective will match the facility to the cash-flow problem, not to the largest number someone will quote.