Quarryfield Capital Group, a small-business funding broker in Hillsboro, Oregon, arranges working capital through lending partners for payroll, supplier invoices and tax payments that come due before customers pay. Funding is repaid in short, fixed installments. Partners review deposits and time in operation, make the credit decision and set the rate and terms.
| Covers | Payroll, supplier invoices, tax bills |
|---|---|
| Wrong fit for | Long-life assets, or losses that keep repeating |
| Repayment | Set debits on a weekly or monthly clock |
| Horizon | Usually counted in months |
| Partners examine | Deposits, months trading, current debt |
| Who decides | The lending partner |
The bills working capital is meant for
Working capital is short-horizon funding for operating costs that land before revenue does. In practice that means wages on Friday when a customer pays in thirty days, a supplier who wants cash on delivery, or a tax payment that falls between two slow-paying invoices. The funding is meant to close a gap that has an end date.
It is the wrong tool for a purchase that lasts for years, such as a vehicle or a remodel, because short installments on a long-life asset squeeze cash flow for no reason. Equipment financing or a term loan usually fits those better. It is also the wrong tool for a business that loses money every month; borrowed money on a short clock makes that problem worse, not better.
How repayment usually works
Partners commonly disburse a lump sum and collect fixed payments by automatic debit, often weekly or monthly, over a span measured in months. Some price the funding with an interest rate and others with a flat fee or factor; ask for the total payback in dollars so two offers can be compared on the same footing.
Before you accept, set the payment dates beside your own deposit calendar. If a weekly debit falls on a Monday and your largest customer pays on the 25th of the month, there will be weeks where the account runs thin. The business loan calculator shows the monthly payment, total interest and total repaid for an amortizing loan; weekly schedules have to be worked out by dividing across the weeks by hand.
Payroll is the common case in Washington County, OR
Washington County, OR employers counted 307,351 paid employees in the March 2023 pay period across 16,355 establishments (County Business Patterns 2023). Construction alone had 1,826 employer establishments, and 62.5% of them had fewer than five people. For a small crew, one late draw can leave payroll uncovered even when the job is profitable.
Our post on funding payroll before a contractor's first draw walks through that exact situation, comparing working capital, a line of credit and a merchant cash advance. The sector pages cover how restaurants and medical practices use short-horizon money differently.
Lump sum, revolving line or receipts advance
| Working capital | Line of credit | Merchant cash advance | |
|---|---|---|---|
| What it is | A lump sum repaid in fixed installments | A limit that refills as you repay | A funder buys revenue not yet earned; never a loan |
| Cost shown as | Interest rate or fixed fee | Interest only on what is outstanding | Factor rate on the amount advanced |
| Fits | One shortfall, with a date it ends | Gaps that recur during the year | Card-heavy sales and an urgent need |
| Watch for | Payment dates against deposits | Draw fees and renewal terms | Holdback percentage and total payback |
The line of credit page explains revolving limits, and the merchant cash advance page explains holdbacks and remittances.
What partners usually review
- Several months of business bank statements, which show deposits, balances and existing debits.
- How long the business has been operating, and its entity status with the Oregon Secretary of State.
- Other funding already in place, including any merchant cash advance being remitted.
- Owner credit history; many partners ask for a personal guarantee.
The yardsticks differ from one partner to the next. Our role is to explain the structure, check that the paperwork is current, and send the request to partners that write working capital. The process page describes each step, and Washington County business data shows the county figures referenced here.
When working capital is the wrong answer
If the gap has no end date, or if it comes back every month at the same size, the business may be looking at a pricing or margin problem rather than a timing problem. Short-horizon funding does not fix that. Neither does stacking a second product on top of the first; partners see existing debits on the bank statements, and an extra payment can turn a tight month into a missed one.
In those cases the better first call may be to an accountant or a free adviser listed in our Washington County, Oregon resource guide.
Taxes and other uses
Owners also ask whether working capital can pay a tax bill. Many partners allow it, since a tax payment is an operating cost, but some restrict use of funds, so read the agreement. Paying an overdue tax debt with short-term money is a decision to make with your accountant first; the payment schedule has to be affordable on top of whatever installment plan the tax agency offers.
By Quarryfield Capital Group · Updated