What are fast business loans?
Fast business loans are a type of loan designed to help small businesses access the capital they need quickly. These loans are often much easier to obtain than traditional bank loans, as they typically don't require a lengthy application process or extensive documentation. Instead, most fast business loans can be approved within just a few days of submission.Â
Additionally, these loans tend to come with lower interest rates and more flexible repayment terms than other types of business financing.
How can I get funding for my business fast?
When starting a new business, one of the most crucial things you need to consider is financing. Securing funding can be a time-consuming and frustrating process, and it often requires you to jump through countless hoops just to get approved. If you're looking for a faster way to get the funding your business needs, there are a few strategies you can try.Â
One option is to look for grants or government loans that provide financial assistance specifically for startups. Another approach is to seek out investors or angel investors who are willing to take a risk on promising new businesses. Of course, you can always apply for a fast business loan, too. Keep reading to learn more!
Small business financing options
When starting a new business or running an existing one, it can often be difficult to find the financial resources that you need.
Online business loan lenders
Many online lenders offer streamlined application processes and fast approval times, making them ideal for businesses that are looking to grow quickly. With so many different financing options available online, there is truly something for every type of business owner out there.
Credit cards
A business credit card can be a helpful tool for financing your business. With a business credit card, you can pay for business expenses and earn rewards, such as cash back or points, which can be used to cover the cost of travel or other business expenses.Â
Business credit cards also offer perks, such as exclusive access to events or discounts on office supplies. When choosing a business credit card, it's important to compare the different offers and find one that best suits your needs. You should also consider the interest rate and fees associated with the card. Although a business credit card can be a useful tool for financing your business, it's important to use it wisely and avoid carrying a balance from month to month.
Merchant cash advance
A merchant cash advance is a type of funding that allows you to access cash based on your future sales. This means that you can get the money you need without having to go through a lengthy application process. And because the funding is based on your future sales, it's easy to make repayments - you simply repay the advance as a percentage of your future credit card sales.
Equipment financing
Equipment financing is a type of funding that is used to purchase large and expensive equipment, such as machinery or vehicles. This funding can be obtained from a variety of sources, including banks, credit unions, or private lenders. Typically, equipment financing funds are paid in installments over an agreed-upon period of time, with the total cost being higher than traditional loans due to the risks involved.Â
SBA 7(a)
This program provides low-interest loans to small businesses for a variety of purposes, including working capital, equipment purchases, and real estate acquisitions. The terms of the loans vary depending on the size of the business and the use of the loan, but they typically range from 5 to 25 years. In order to qualify for a 7(a) loan, a small business must meet certain size and credit requirements.Â
Invoice factoring
Invoice factoring, also known as invoice discounting, is the process of selling off unpaid customer invoices to a third party in order to secure working capital. This process allows businesses to access the funds that are tied up in unpaid invoices without having to wait for payment.Â
Common uses of fast business loans
Fast business loans are a type of financing that can provide companies with the working capital they need to seize opportunities and grow their businesses. Here are some of the most common ways that fast business loans are used:
A fast business loan can be used to purchase inventory, which can be helpful if you are anticipating an uptick in demand.
A fast business loan can also be used to hire new employees, which can be beneficial if you are looking to expand your company.
- To cover unexpected expenses
Finally, a fast business loan can be used to cover unexpected expenses, such as repairs or renovations. This can help you avoid disrupting your cash flow and keep your business running smoothly.
Pros and cons of quick business loans
It's important to weigh the pros and cons of quick business loans before you decide whether or not to take one out.
PROS
When you're running a business, there are always going to be unexpected expenses. That's why quick business loans can be such a helpful tool. They can provide the funds you need to cover unexpected repairs, inventory shortages, or any other unexpected cost.Â
CONS
Quick business loans also come with some risks. The biggest risk is that you may not be able to repay the loan in a timely manner. This can lead to late fees and interest charges, which can quickly add up. Additionally, if you default on the loan, you may damage your credit score.Â
How long do business loans take to get approved?
The process of getting a business loan can often be a long and complicated one. The application alone can involve a thorough review of your company's finances, as well as a credit check to determine your ability to repay the loan.Â
Once you have submitted your application, it may also take some time for the bank to approve or deny your request. On average, it usually takes between one and two weeks for business loans to get approved but it can take anywhere between 15 minutes and a few months. SBA loans take longer. However, this estimate can vary depending on the specific bank or lender you are working with, as well as the overall state of the lending market.Â
What credit score do I need to qualify for a quick business loan?
The answer may vary depending on the lender, but in general, you will need a credit score of at least 620 to qualify for most business loans. That being said, there are some lenders who are willing to work with people with lower credit scores, so it is always worth shopping around to see what options are available.
Can obtaining a business loan hurt my credit?
One potential pitfall of borrowing money for your business is that the loan will be recorded as debt on your credit report. This means that over time, the amount you owe could add up and weigh down your credit score, making it more difficult to obtain additional loans or even rent an apartment or apply for a mortgage.Â
Additionally, some lenders may take a conservative approach when evaluating future loan applications from borrowers who are currently in arrears on accounts such as student loans or mortgages.
Fast Business Loans for an Opportunity
For business owners who’ve stumbled upon an unexpected opportunity to grow their company, same-day business loans can deliver the funds you need to expand your organization. But, regardless of your business’s success, what if your personal credit score is nothing brag about? How will that affect the likelihood you’ll qualify for instant approval?
If this situation sounds familiar, rest assured, you still have options. Fundbox, Loanbuilder, Kabbage, and QuarterSpot are four leading lenders that don’t require strong credit in order to qualify for fast business funding.Â
Here’s a quick look at each of these lenders and their typical terms.
- Fundbox
- Loan Amounts: $1,000 to $100,000
- Interest Rates: 10.1% to 79.8%
- Repayment Terms: 3 to 6 months
- Time to Funding: Hours or next business day
- Minimum Credit Score: 550
- Length of Business History: At least 1 year
- Required Revenue: $200,000 annually
- Loanbuilder (by PayPal)
- Loan Amounts: $5,000 to $500,000
- Interest Rates: One-time fee instead of an APR
- Repayment Terms: 13 weeks to 1 year
- Time to Funding: Same day or within 5 days
- Minimum Credit Score: 550
- Length of Business History: At least 9 months
- Required Revenue: $42,000
- Kabbage
- Loan Amounts: $2,000 to $250,000
- Interest Rates: 24% to 99%
- Repayment Terms: 6 to 12 months
- Time to Funding: A few minutes to several days
- Minimum Credit Score: 560
- Length of Business History: At least 1 year
- Required Revenue: $50,000 annually
- QuarterSpot
- Loan Amounts: $5,000 to $200,000Â
- Interest Rates: 24% to 99%
- Repayment Terms: 6-18 months
- Time to Funding: As soon as 24 hours
- Minimum Credit Score: 550
- Length of Business History: At least 1 year
- Required Revenue: $200,000 annually
For Businesses That Are at Least 1 Year Old
Different lenders have different requirements insofar as what qualities they like to see in the businesses that borrow from them. One the most common criteria is a specified amount of time a business has been active.Â
Many lenders require their borrowers to have at least 2 years of experience as a business entity, while other lenders only require only 1 year of operation. StreetShares and OnDeck are two lenders that fall into the latter group. Here’s a quick overview of each of their terms.
- StreetShares
- Loan Amounts: $2,000 to $250,000
- Interest Rates: 9% to 40%
- Repayment Terms: 3 months to 3 years
- Time to Funding: 1 to 5 days
- Minimum Credit Score: 600
- Length of Business History: At least 1 year
- Required Revenue: At least $75,000 annually
- OnDeck
- Loan Amounts: $5,000 to $500,000
- Interest Rates: 9.1% to 99.8%
- Repayment Terms:Â
- Time to Funding: 1 to 5 days
- Minimum Credit Score: 500
- Length of Business History: At least 1 year
- Required Revenue: At least $100,000 annually
Low Rates for Strong Businesses
If you’ve got great credit and your business is booming, yet you still find yourself in need of a fast small business loan, you’ll likely have your pick of the litter when it comes to lenders. In this case, it usually makes the most sense to choose whichever lender will offer you the lowest interest rate and the best terms.Â
Lending Club and Credibility Capital are two lenders that offer attractive terms to qualified applicants. Here’s a quick look at these two companies.
- LendingClub
- Loan Amounts: $5,000 to $300,000Â
- Interest Rates: 9.8% to 35.7%
- Repayment Terms: 1 to 5 years
- Time to Funding: From 2 days to 2 weeks
- Minimum Credit Score: 600
- Length of Business History: At least 1 yearÂ
- Required Revenue: $50,000
- Credibility
- Loan Amounts: $50,000 to $300,000
- Interest Rates: 9.8% to 35.7%
- Repayment Terms: 1, 2 or 3 years.
- Time to Funding: 3 days to 1 week
- Minimum Credit Score: 650
- Length of Business History: At least 18 months
- Required Revenue: $150,000
What is the best way to get a quick business loan?
One option is to work with a traditional lender such as a bank or credit union. While it can take some time to go through the application process, you may be able to get approved for a loan relatively quickly if you have good credit. Another option is to work with an online lender. These lenders tend to have a much quicker application process, and you may even be able to get funded in as little as 24 hours. Of course, you will likely pay higher interest rates with an online lender, but if you need cash fast, this may be the best option for you.
How much can I qualify for when applying for a fast business loan?
While there are many factors that will influence your eligibility, such as your credit score and financial history, there are also some general guidelines that can give you a sense of what kind of amount you might be able to secure.Â
Most lenders won’t give you a loan that is more than 10-30% of your business’ annual revenue. That said, depending on the specifics of your business and your personal financial situation, you may be able to qualify for more or less than this range.Â
How to Get a Quick Business Loan (Qualifications)
Getting approved for a quick business loan can unfold in a few different ways depending upon which lender (or lenders) you apply for a loan from. With most online lenders, the process typically involves filling out a form that includes questions about your individual identity and your business basics. Some lenders will ask for information about your business’s finances, while others will want to connect directly to your accounting software. Depending on which lenders you decide to apply to, you could receive a decision right away or within a few days. And, in many instances, an approval means the funds could be in your account in as little as a few hours.
What Makes Quick Business Loans So Quick?
Compared to traditional business loans that you might inquire about at a bank, quick business loans are far easier to apply for. Why is that? It basically comes down to these three reasons.
- Less Regulation: Traditional bank loans are subject to far more government oversight and regulation compared to modern quick business loans.
- Less Paperwork: There’s far less paperwork to compile and complete with quick business loans compared to their traditional counterparts.Â
- Increased Efficiency: Because there’s less paperwork, less regulation, and the entire arrangement occurs online, quick loans are inherently more efficient than bank-based borrowing arrangements.
Why Would You Need a Fast Business Loan?
There are numerous reasons why you might be exploring quick loan options for your business, but, broadly speaking, businesses usually take out loans for one of the following purposes.
- Equipment Repair: Expensive machines a business needs in order to operate can unexpectedly break.
- Building Maintenance Problems: Plumbing problems, electric outages, or other unforeseen infrastructure issues can instantly cripple a company.
- Growing Pains: Businesses in the midst of a growth spurt frequently need access to additional funds to bridge financial gaps.
- Unexpected Opportunities: Limited-time sales on inventory or the chance to buy a service vehicle at a fraction of the cost lead many businesses to take out loans.
- Plan to Expand: The need for additional office space or team members usually requires an up-front investment before beginning to pay off.
Conclusion
Ready to apply for a quick loan that takes your business to the next level? Explore the options available to you, and choose the lender that makes the most sense for your situation.
