What are same day business loans?
Same day business loans can deliver the cash your small business needs in under a day. Keep reading to compare the pros and cons of options available for fast or same day business loans.
How quickly can you get a business loan?
Some business loans can be funded in less than one full day. Apply online at PrimeRates.com to receive multiple personalized loan offer within minutes.
What credit score do I need to qualify for a same day business loan?
In general, business owners with a good credit score can secure loans faster, maybe even same day. Funding times and credit score requirements can vary depending on the lender. However, in general lenders prefer to approve applicants who have a credit score of at least 620 and above. And in order to access the best rates, borrowers should have a “Prime” credit score of 660 or more.
In the event that you do not meet these minimum qualifications, you may be able to apply with a cosigner to qualify for a loan. You will need to speak with the lender of your choice to see if this option is available.
How much can I borrow with a same day business loan?
Same day business loans are generally for smaller loan amounts. However, what you can borrow will come down to what you qualify for and what a lender can offer. Some lenders can loan up to $100,000 with same day approval, but funding may take a few business days.
What is the monthly cost on a same day business loan?
When you take out a same day business loan, your monthly payment will be determined by a variety of factors. This includes: your credit score (which determines your interest rate), the loan amount, the interest rate, the length of the loan term, and any additional monthly fees such as a maintenance fee. This makes it difficult to estimate an average monthly cost of a loan.
However, borrowers can get prequalified from a few different lenders and utilize an online loan calculator to get a better idea of what their monthly loan payment will be. Getting prequalified at PrimeRates is quick and easy and does not affect your credit score.
In addition, you may have an upfront cost to take out your business loan such as origination fees, documentation fees, or application fees. Other fees typically seen on business loans include late payment fees and even early repayment penalties. Be sure to thoroughly read through your loan terms and any fee schedules before signing on the dotted line for your loan.
Same day business loans may have different terms than your typical business loan. You may need to pay more than once a month, especially if you take out a short-term loan. In addition, interest rates can be higher for same day business loans than for other types of loans. It’s important to remember that the fastest deal is not always the best deal. If you are not in a rush, it may pay to consider other options such as SBA-backed loans or business lines of credit.
As a rule of thumb, you should never apply for any type of financing that you cannot afford to pay back. Keep in mind that missed payments and other negative information will stay on your credit report for years to come. Be sure you have the revenue and cash flow to afford the loan.
What is the easiest way to get a same day business loan?
First, you’ll need to find a lender that offers same day business loans. Typically, the easiest way to go about this is online. Just be sure to only deal with legitimate lenders.
Benefits of same day business financing
When you need cash in a hurry, a same day business loan can be a great option, although you may pay a bit of a premium for the convenience. Benefits of same day business financing include fast access to cash for everyday expenses, the ability to cover expenses in an emergency, more relaxed eligibility requirements, an easier application process, more flexible underwriting, and increased availability to those with poor credit.
Alternatives to same day business loans include business lines of credit, merchant cash advances, and invoice factoring. Be sure to compare your options before applying to ensure that you are making the best financial decision for your business!
Can I get a small business loan with a 500 credit score?
There’s a chance you can get a business loan with a 500 credit score. Some lenders will require minimum annual business revenue and time in business rather than a high personal credit score.
See Also: Bad Credit Business Loans
Best same day business loans for quick cash
OnDeck
OnDeck is one of the largest online small business lenders and was founded in 2017.
Pros
- Transparent terms
- Access to loans through business debit cards feature coming soon
- Funds available quickly
Cons
- Higher APRs
- Origination fee
- No factoring offered (all funding options incur debt)
» MORE: OnDeck Loan Review
QuarterSpot
QuarterSpot is an online lender that stands out from the competition and provides short-term loan products.
Pros
- Transparent fees and terms
- Lower credit score requirements
- Prepayment discount
Cons
- High origination fee
- Moderate factor rate
- Additional fees may apply
» MORE: QuarterSpot Loan Review
LendingClub
LendingClub is a peer-to-peer lender that serves small business. LendingClub highlights faster funding than most banks without the strict requirements.
Pros
- More relaxed requirements
- Funds available quickly
- No prepayment penalties
- Borrow between $5,000 – $500,000
- Fixed interest rate
Cons
- Lien required for loans $100,000 or more
- Application requirements can be time consuming
- Works hard against default accounts
» MORE: LendingClub Business Loan Review
StreetShares
Originally founded by veterans for veterans, StreetShares is an online lender that offers…
- Business installment loans
- Lines of credit
- Contract financing (similar to invoice factoring)
Pros
- Typical funding time 2 – 7 days
- Easy application process
- More relaxed requirements
- Customer service
- No prepayment penalties
- Competitive terms
Cons
- Not a good option for large businesses
- Minimum credit score of 620 & minimum $25,000 annual income requirement
» MORE: StreetShares Loan Review
Credibility Capital
Eligible merchants can take advantage of medium-term installment loans through Credibility Capital.
Pros
- Good option for small businesses
- Competitive terms
- Quick application process
- Typical funding time 2 – 7 days
Cons
- Strict borrower qualifications
- Not available in all states
- Not a good option for startups
» MORE: Credibility Capital Loan Review
All options for same day business loans
Working capital loans are designed to help support your everyday operating costs. In most cases you don’t have the state the purpose for borrowing and the loan is short-term.
Pros
- Helps with cash flow problems
- Maintain ownership of your company
- Borrow and repay quickly
Cons
- Collateral can be required
- Less time to repay loan
- Typically higher interest
Short term business loans can help you obtain the funds you need quickly. To avoid potential risks you should do your research and clearly understand the terms of your loan.
Pros
- Easy approval process
- Increase cash flow quickly
- Access more opportunities
Cons
- Higher interest rates
- More frequent payments
One of the fastest forms of small business financing available is a merchant cash advance. On approved loans you can receive the money in your account as fast as 24-48 hours.
Pros
- Fast funds
- No fixed monthly installments
- Bad credit can qualify
- No collateral
Cons
- Expensive
- Temporary solution
- Funds deducted daily decreasing your cash flow
- Lenders operate in unregulated industry
- Can lose some ownership of your business
For most businesses expensive equipment is required for day to day operations. Businesses that are more reliant on expensive equipment may want to consider equipment financing.
Pros
- Receive the money to lease, buy, or repair equipment
- Improve cash flow by spreading out the cost of equipment purchase
- Collateral in addition to the equipment is typically not required
- Increase opportunity for more sales
Cons
- Loan restricted to equipment
- Higher interest rates
- You own the equipment
Invoice factoring is much different than a regular business loan. Outstanding invoices are sold to a factoring company that pays you in a lump sum.
Pros
- Immediate & ongoing cash flow
- Higher approval rate
- Outsource the task
- No collateral required
- Builds better customer relationships
Cons
- High fees
- Liabilities (you may be responsible for unpaid invoices)
- Eligibility can be dependent upon customer payment track record
- Lack of control
A business line of credit can be compared to your credit card. You can use it pretty much however you’d like to as long as you stay within your approved limit.
Pros
- Balance cash flow
- Only pay for what you use
- Take advantage of more opportunities
- Builds business credit
Cons
- Extra charges and fees
- Qualifying can be difficult
- Temptation to misuse line of credit
- Low borrowing limits
Business Credit Cards
Business credit cards are similar to personal credit cards and should be used wisely. They can help businesses manage expenses and track accounting expenditures.
Pros
- Easier qualification
- Earn rewards
- Access to easy financing
- Build business credit
Cons
- Most require personal guarantee
- High interest and late fees
- Less purchase protection
Business Charge Cards
Business charge cards are similar to credit cards but require you to pay in full monthly and have no preset spending limit. American Express is the only major company that still offers charge cards.
Pros
- Higher spending limit
- Potential to earn more rewards and perks
Cons
- High annual fees may apply
- Must pay in full monthly
- No special financing promotions
How to qualify for same day business financing
To qualify for same day business financing, you will likely need to meet a minimum credit score requirement and provide some basic documentation about your business. Lenders like to see that applicants are trustworthy and businesses are solvent before approving them for a loan.
Keep in mind that with same day business financing, much of the underwriting process may be automatic, so if you have any extenuating circumstances affecting your creditworthiness, you may be better off applying through a bank or credit union that can offer you the human touch.
Shopping around and getting prequalified can help you get a better idea of whether or not you will be approved for a loan and for how much.
How to get a same day small business loan
To get a same day small business loan, you will most likely need to use an online lender instead of a traditional bank or credit union. At PrimeRates you can access offers to various types of business loans with fast funding. The first step to getting any kind of loan is to apply.
Before you apply, it’s important to calculate how much money your business needs and how much you can actually afford to repay. You will need to make sure that your company will be able to generate enough cash flow to comfortably make your new monthly loan payments.
Next, you will apply online and follow the steps from your chosen lender to provide the proper documentation pertaining to your business. You will most likely be subject to a personal credit check and need to provide information about your company’s finances and annual revenue.
Keep in mind that although same-day funding is available from some lenders, it may take a few days to complete the application, underwriting, and funding process – even from these lenders.
Compare rates and apply
The fastest way to get pre-qualified for a business loan is online in most cases. Platforms such as PrimeRates allow you to check offers from multiple lenders with no impact on your credit score. Simply submit some business information and check real offers within minutes. Take your time reviewing offers and when you’re ready, apply for the one that you feel is best. As long as the information you originally submitted is true, the offer should not change.
Conclusion
In conclusion, a same day business loan can provide immediate access to cash and help your business take advantage of more opportunities. Ready to take the next step? Apply online in minutes at PrimeRates.com and receive multiple personalized loan offers. You can efficiently compare offers and select the offer that best fits your needs. Once your loan is finalized you can receive funds quickly. Ready, set, save time and money at PrimeRates.com.
