Second Lien Business Loan for Working Capital

A second lien business loan (also called a junior lien business loan or second position business loan) is financing secured by collateral that already has a first lender in place. The first lender stays in first position. The second lien lender takes a subordinate position behind them.

For established companies, second lien business loans can be a practical way to raise meaningful capital without refinancing your senior facility or disrupting an existing bank or asset-based lending relationship. Noble Funding’s bridge loans are designed to complement, not replace, senior lenders.

Noble Funding has been in business for 20 years, holds an A+ BBB rating with zero complaints since 2005, and has funded over $1 billion in business loans and business lines of credit nationwide.

What Is a Second Lien Business Loan?

A second lien business loan is a form of junior capital where the lender’s security interest sits behind (is subordinate to) the first lien. If the borrower defaults, the first lien lender is paid first from the collateral, and the second lien lender is paid next.

Second lien financing is often used when:

A business needs more capital than its bank will provide today

Timing matters and waiting weeks can cost revenue, inventory, or a deal

The company wants to keep its existing senior lender in place, but borrow fresh capital for expansion or other general working capital purposes

When Second Lien Loans Make Sense

Second lien business loans are commonly used for time-sensitive or “situational” needs, such as:

Filling large purchase orders

Bulk inventory purchases

Hiring ahead of new contracts

Financing equipment

Paying down vendor payables or A/P

Bridging a cash flow gap until a refinance, receivable inflow, or other liquidity event

Noble Funding Second Lien Style Capital: What We Focus On

Noble Funding specializes in junior capital and junior debt bridge loans, typically $300,000 to $10 million, for companies that need capital in days, not weeks.

Typical borrower profile

Established companies seeking meaningful capital quickly

Annual revenue generally in the $5 million to $150 million range (case dependent)

Companies can be positive or negative EBITDA

Common loan structures

Fully subordinated junior debt behind a bank or senior secured lender

In some cases, capital can be fully unsecured with no UCC filings on corporate assets

How Fast Can a Second Lien Business Loan Fund?

For qualified borrowers, underwriting and funding can often be completed in just tow or three business days.

If you need $2 million or $3 million in 2 to 3 business days, this is the type of situation Noble Funding is built for.

Terms and Early Payoff Discounts

Second lien loans are frequently used as bridge capital, so terms are typically shorter than traditional bank term loans. Noble Funding bridge funding commonly features:

Typical terms: 12, 15, or 18 months

Early payoff discounts available when you exit the bridge early

(Exact terms and eligibility depend on the specific transaction)

Second Lien vs. Unsecured Business Loans

Some borrowers search for a second lien business loan when what they really want is “junior capital that does not disturb the senior lender.” That can be accomplished in more than one way:

Second lien loan

Uses collateral and records a junior position

Can support more funding outside of a borrowing base structure

Requires coordination or subordination agreement with existing senior lender

Fully unsecured junior capital

No liens or UCC filings on corporate assets in eligible cases

Built for speed and simplicity

Often used when the borrower wants minimal friction with existing lenders

Why Companies Choose Noble Funding for Junior Capital

Borrowers come to Noble Funding when they need a fast, relationship-friendly solution:

20 years in business

A+ BBB rating and zero complaints since 2005

$1B+ funded nationwide

Focus on junior debt that can sit behind senior lenders

Built for speed, with funding measured in days for qualified borrowers

FAQ: Second Lien Business Loans

What is a second lien business loan?

A second lien business loan is financing secured by collateral that already has a first lien lender. The second lien lender is subordinate to the first lender and is repaid after the first lien is satisfied.

Can a second lien loan be used for working capital?

Many companies use second lien or junior capital for inventory, payroll, hiring, purchase orders, and other time-sensitive working capital needs.

Do I have to refinance my bank loan to get a second lien loan?

Second lien financing is often used specifically to keep the senior lender in place while adding junior capital behind it.

How fast can Noble Funding close?

Bridge funding can often be completed in a few business days for qualified borrowers.

Call Noble Funding for a Second Lien Business Loan Quote

If your company needs $300,000 to $10 million quickly and you want to keep your senior lender relationship intact, a second lien business loan or junior capital bridge loan may be the right fit.

Get an instant quote or call Noble Funding today to discuss your timeline, collateral, and senior lender structure.