A unique natural experiment in China – the staggered introduction of administrative approval centers (AAC) – reduces bank loan processing times by substantially speeding up the process of registering collateral without affecting credit decisions. Following an AAC introduction, affected firms reduce their cash and inventory holdings and rely less on trade credit. Cash flow sensitivity of cash holdings decreases, as does the cash flow sensitivity of investment. Overall leverage does not change, but the share of short-term credit used by firms increases. Defaults decrease significantly. These results suggest that timely access to credit has important consequences on firms' capital management.