In times past, it took several days running into weeks to get access to business loans. unfortunately, quick business loans were not even readily available. You will spend a lot of time preparing a loan application only for you to be rejected in the end. Fortunately, times have changed and it is no longer difficult to get a business loan. You can even get a loan in less than 48 hours. Although, there are quick business options, there still options that take a longer period to be completed.
Due to this, you will need to properly research your option to choose an option that does not only grant fund fast but also suits your demand. These are fast business loan options.
Most short-term loans can be accessed online. This loan process is easy and the eligibility requirements are not many. You can complete an online loan application in minutes and the lender will send you feedback on whether your loan is approved or not. There are several lenders who will give you same day approval. Once the application process is complete, you will have the money in your account as soon as the next business day. This loan system works just like that of the traditional lenders. the lender will grant you the amount you require. You will be required to pay back with interest and you will also pay some fees. The lender will discuss the loan term with you. In most cases, you will need to make monthly payments until the loan term is due. You can access between $2,500 and $250,000 when you apply. With short-term loans, the rates are often higher than long-term loans. Short-term loans are great because they help you to get funds whenever you need one. They can help you bridge the gap between cash flows if your business brings seasonal sales.
Short-term Line of Credit
Another great option for startup short term loans is the short term line of credit. The line of credit works like a credit card. The lender will approve you for the maximum amount you can take. With this, you can draw from that amount up to the limit the lender has given. The good thing about this loan option is that the line of credit is revolving. When you pay up, your credit limit increases and you can draw more in the future. The only difference between the short-term line of credit and long term line of credit is that the short-term line of credit is repaid in less than one year. The maximum amount you will get approved for is usually $250,000 and you can get the funds just one day after you have been approved for the quick loan.
Another short-term business loan is invoice financing. If you have lots of unpaid invoices because customers are not paying on time, you may need to rely on invoice financing. Invoice financing is one of the quickest funding methods and can get access to the funds by the next business day. Outstanding invoices are used as collateral for this loan. The financing company can fund up to 85% of the outstanding invoice. You should have in mind that you will need to pay fees when you repay the loan. Invoice financing is a good option for business owners whose businesses do not have good credit and strong financial standing. With this loan option, the lender mostly looks at the outstanding invoice.
If you are looking for quick funds to fund a huge equipment purchase, you can acquire an equipment financing loan. You can use this loan to finance the purchase of a vehicle, huge machines, and furniture. The approval rate is fast; you can be approved in less than 48 hours. The lender can also finance up to 100% of the equipment purchase. With this loan option, the lender does not grant you loans based on your borrowing and business history. The lender only relies on the equipment they are financing. The equipment becomes the collateral for the loan. If you are unable to repay the loan, the lender may sell the equipment to pay for the loan.
Merchant Cash Advance
Another loan option is merchant cash advance. It is easy to qualify for this option. Many business owners who cannot access funds from other lenders rely on this loan option for funding. Unfortunately, this loan option is expensive but it is fast. The amount you will be given will depend on the monthly revenue of your business. You will need to pay back the cash along with a fee. With this loan option, the lender will take a take a percentage of the businesses daily cash flow until the borrower finishes paying off the loan. Because payments are made daily, you should maintain proper accounts to help you maintain a good cash flow. One advantage of merchant cash advance is that you can pay your lender less during periods that you make fewer sales. The APR for merchant cash advance ranges from 15% to 80%. With this loan option, you do not need a good credit to qualify for this loan.
Best Lenders that Offer Quick Business Loan
OnDeck Capital can grant you a loan in 24 hours. The requirements for eligibility is also not high. If you have a credit score of at least 500, you can qualify for the loan. You should be in business for at least one year, and you should have an annual revenue of at least $100,000. You can acquire a loan between $5,000 to $500,000 and a rate that ranges between 9.8% to 35.7%.
This lender offers loans to applicants in less than a week. Funding typically takes 2 days after application. The required credit score is 600 or more and you should be in business for at least one year. You need an annual revenue of $50,000 or more. You can take a loan between $5,000 to $300,000. The interest rate is between 9.8% and 35.7%.
With Kabbage, you can access a business loans quick online in a few minutes. There is no minimum credit score but you need to be in business for at least one year. Your annual revenue should be at least $50,000. The APR for loans range from 24% to 99% and you can access between $2,000 and $250,000.
FundBox can grant you a loan between $1000 and $100,000 in as soon as 24 hours. The APR ranges from 15% to 59%. There is no minimum credit required. However, FundBox expects you to be in business for at least six months to qualify for the loan. You should also have an annual revenue of at least $25.
When you need a loan in three days, you can rely on Credibility Capital for this loan. you can acquire between $10,000 to $350,000 at an APR of 10% to 25%. You will need to be in business for at least one and a half months and your minimum credit score should be 650. Your annual revenue should also be at least $150,000.
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.