Fast business loans are a lending solution typically from an online bank that provides access to capital in as little as 24 hours. While they’re an excellent solution for those needing fast access to money, they usually come with higher interest rates and shorter loan terms. Fast business loans generally will fall into the category of invoice financing, term loans, business lines of credit, equipment financing, or merchant cash advances.
In order to get a fast business loan, you’ll usually need to find an online lender that offers quick approval decisions through a streamlined application. Since traditional banks can require more lengthy applications or have an in-person requirement, they typically cannot provide approvals as quickly as online lenders.
Using a platform like mySMBscore to shop around for rates to find the best option and compare business lenders is best. Part of your comparison can include funding times if you are in a hurry. Regardless of how quickly you need the funds, you should prioritize the cost of the loan. If a few days save you hundreds or thousands, it’s worth the wait. With the mySMBscore platform, you can find lenders that want to work with you based on personalized credit data, saving you time and money as you decide which lender is right for you. Plus, with an overview of your SMB score and its components, you’ll be able to make an educated decision.
Fast business loans are a great solution for business owners who suddenly face unexpected expenses or emergencies. Since they provide cash in as little as 24 hours, it can be helpful to consider a fast business loan if you’re faced with broken equipment, are presented with an investment opportunity or simply need extra cash to cover payroll and other immediate needs.
Fast business loans are also a great solution for borrowers unable to qualify for traditional financing or SBA loans. Since online lenders have more flexible requirements, they can be an alternative solution to the more traditional financing opportunities.
If you’re looking for access to cash quickly, consider these fast business loans:
Borrowers who are looking for a straightforward fixed loan can benefit from a short-term business loan. As one of the most popular types of business loans, many online lenders offer short-term loans with repayment periods under two years. Once you submit your application and are approved, you can receive funds as a lump sum in as little as a day or two and begin repaying the loan with a fixed interest rate, usually monthly.
Business lines of credit are a common way to get funding fast for your business. This revolving line of credit is a great option for those who need to borrow funds several times and don’t have a specific lump sum amount they need. Business lines of credit provide some of the quickest access to funds, with some banks offering access within hours of approval.
Aside from the more standard options, there are a few lending products that provide quick access to funds based on your company’s cash flow. These include merchant cash advances and invoice factoring.
Merchant cash advances give business owners a lump sum of money, which is repaid through a portion of their credit card sales. If businesses make a lot of credit card sales, they can quickly access this option. But it can also be expensive depending on the factor rate of the loan.
Invoice factoring is another popular alternative option that offers quick access to funds. Companies can sell their unpaid invoices to a third party, called a factoring company, which will then provide an advance of up to 90% of the amount owed.
If you need fast access to cash, there are some things to consider before taking a fast business loan.
As you shop around for the best fast business loan, there are a few things to consider when picking the lender for you:
While it depends on the type of loan you apply for, some online lenders can provide an approval decision on your loan and give access to funds in as little as 24 hours.
While approvals for SBA loans can occur within five to ten days, it can take much longer to get the funding requested. Unlike online lenders, SBA loans utilize more traditional lending practices, with approvals taking up to 90 days. While borrowers will usually benefit from lower interest rates and fees, they also will have to wait longer to access their funding.
If your startup has been in business for at least six months and has a reliable cash flow, you can likely get approved for a quick business loan. But, most startups that aren’t established will have to apply for an SBA loan or a business credit card to access capital.
The time it takes to get approved for a business loan will vary based on the lender and the type of loan you apply for. While some online banks can quickly approve and fund applications, more traditional banks can take several weeks due to a longer underwriting process.
Explore a fast business loan through an online lender if you need money within a few days. By utilizing mySMBscore, you can see customized loan offers designed just for you, saving you time and money as you shop for the best loan.
While a fast business loan might be a borrowers-only option, there are some circumstances that warrant a different loan product. If you don’t need funding immediately, it can pay off to opt for a more standard loan option since fast business loans will have higher interest rates. Additionally, if there are other lending products you might qualify for - like SBA loans - you can also benefit from lower fees and interest rates, saving you money in the long run.
Often the easiest loan to apply for, qualify and obtain the funds for is from an online lender. Since they offer a tech-enabled application and seamless approval process, most applicants get their approval decision in just a few hours - with some lenders offering funds in as little as 24 hours.
Another option is an SBA express loan, which is a fast-turnaround-time loan from the Small Business Association that provides approvals within 36 hours.
Understanding your business finances through the eyes of a lender can help you understand what you realistically qualify for. With this knowledge, you can narrow down options faster and make better business decisions. At mySMBscore you can get your SMB score and actionable insights on how you can be better qualified to get a fast business loan. Always remember to slow down and make good decisions, even if you’re in a hurry. A bad business loan could be detrimental to your future success.
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