When your business is faced with a financial crisis, you first point of call may be a quick internet search for fast business loans. The only way to get access to good loan packages is to conduct thorough research and then compare the packages. Here, we have compiled a list of the best small business loan options. This will help you narrow down your search and choose a loan option that will work for you.
Circumstances That Require Fast Business Loans
You may be doing alright with your business and then an unexpected circumstance can drive you to the edge. Even companies that have good financial standing can still run into some of these problems. If you do not have a contingency fund to cater for these things, you will need to rely on fast business loans. one of these situations if equipment failure. Machines may be very effective but no one can predict when they will stop working. There are also situations where a flood enters your office and destroys your equipment. Since you cannot work without the equipment, you will need to get funds to get it as soon as possible. When you also see an unexpected opportunity to grow or expand, you will need to grab the chance immediately. Even if you do not have enough funds to pursue the opportunity, it is not prudent to forgo the opportunity. You can get fast business loans to help your business.
Some Fast business loans
This loan option can be used for almost anything that will help your business to grow. The lenders can grant you loans between $2,500 to $250,000 and the rates range from 7% to 99%. You can repay this loan from three months to one and a half years. The main reason why we are mentioning this loan type is that you can get this loan is less than 48 hours. With working capital loans, businesses with poor credit can still get access to this loan even if you have poor credit. The paperwork that comes with this loan application is also limited and you do not need to worry about a long application process. When it comes to repayment, most lenders request daily payments.
Business Line of Credit
This option allows you to access a pool of funds for emergencies. With a business line of credit, you can be approved within 48 hours. With the business line of credit, you will be given a maximum amount you can withdraw. One good thing about this option is that the lender does not begin charging interest until you draw an amount from the line of credit. You may need to provide collateral when you apply for this fast business loan. you can access money multiple times until you reach your credit limit. Another thing worth mentioning is that the balance is revolving so your credit limit increases when you pay your balance. This means that the more you pay down your balance, the more funds are available to you. This funding option works just like the credit card.
Short Term Fast Business Loans
This loan option is good for business owners who need huge funds quickly. With this loan option, you can access funds within 48 hours and the loan repayment term ranges from 3 to 18 months. Unfortunately, this fast business loans online can be expensive due to the high-interest rate. Lenders grant loans of amounts between $2500 to $250,000. Most of these lenders work through online platforms and the entire application process is done online. Lenders grant loans based on the creditworthiness of your business. If you have a high credit score, you can easily access a loan and the interest rate will be lower than that of someone with a low credit score. However, people with low credit scores still get access to loans.
When you need cash to finance the purchase of a huge equipment, you can apply for this loan type. With this fast business loans, the lender can give you the loan within 48 hours or sooner. The lender can finance up to 100% of the equipment purchase. It all depends on whether you can make down payments or not. The APR usually range from 8% to 30% and the average loan term is 7 years. The interest rates for equipment financing loans are quite low because the lender sometimes uses the equipment the business owner will purchase as collateral. Some other lender may ask you to put up your home or savings account as collateral. This action is not advisable since it will put your personal properties at risk. Try to avoid such lenders and deal with lenders who want you to use the equipment you are purchasing as collateral.
Another loan option that can make funds accessible to you in no time. If you run out of funds because your customers delay paying their invoices, you can opt for invoice financing to bridge the gap. With invoice financing, the lender will finance up to 90% of the outstanding invoice. You will be required to pay the amount you receive and fees. Usually, you will pay a weekly factor rate of 3% while you wait for your customers to pay you. the outstanding invoices are used as collateral and the process is relatively easy. This form of business financing does not depend on your credit only. It also depends on a credit of your customers since the financing company will depend on the customers’ invoice payments.
This is also another option of business financing that allows you to sell a portion of your business’ future revenue for a lump sum. The lender can make the funds available in less than 24 hours. In most cases, you can access between $2,500 and $250,000 at a factor rate that ranges between 1.14% and 1.18%. the lender will deduct payments from your merchant account daily. The lender will decide on the amount you qualify for by assessing your bank statements and merchant processing statements. The lender may also look at your personal credit score.
Joshua is a financial lawyer who plans on writing a book about his experience on debt collection laws and lending terms and conditions. He is currently one of the senior partners at his law firm but wants to take more time off for his writing.