Need fast business loans? Here is what you need to know
To finance growth and meet other short-term financial needs, a business requires extra cash.
Sometimes, the need for fast business loans may be so urgent to wait for the back and forth, and the long verification done by a traditional bank.
Imagine waiting for weeks after a loan application with your local bank only for your request to be denied.
By that time, you’d have lost that great opportunity that would have brought additional ROI (return on investment) to your business.
Fortunately, there are alternative lenders who offer quick business loans and can make the funds available in your bank account within the same business day.
In this article, you’ll learn why small businesses may need instant business loans and some of the best small business loans for your venture.
Situations that may require fast business loans
Sometimes your business may face a cash crunch and you’ll need money as quick as you can.
These circumstances vary and are quite unique to each business. They are also pretty unpredictable.
Some of the most common business expenses that’ll require quick funding are:
- Growth and expansion
To fund business growth and expansion, you’ll need extra cash.With the expansion, come added expenses. You may be forced to hire new employees, acquire additional office space, and train your new and maybe old employees to serve your potential clients better or even buy new equipment.All these needs will require quick cash to boost your working capital. You cannot afford to wait for weeks to receive the much-needed funds.
- Repairing a failed equipmentIf you are in manufacturing or hospitality industry and depend on a specialized equipment to run your business, you know how important it is for that equipment to be up and running at all times.If it fails unexpectedly, your business loses money.
To avoid this loss, you’ll need to fix it as quick as possible. You’ll need to apply for quick funding to repair the machine and get back to work.
- Take advantage of an unexpected business opportunityThe business environment is quite dynamic and sometimes it comes with lots of surprises. Opportunities are rare and sometimes when they come, the faster you grab them, the better for your business.Your suppliers may be offering a huge discount on fast moving inventory that may generate a huge ROI to your business, or even new equipment that will help you serve your customers better may be on offer.
These offers don’t last a long time so the person who takes advantage of them, benefits the most. A loan to start a business may just be what you require to grab such one-time opportunities.
- Maintenance problemsIt’s not an uncommon scenario to have electrical, plumbing or even serious issues in your office premises if you are doing business in an old building.Chances are you’ll be forced to do maintenance from time to time so that your business does not stop.
These renovations will require additional cash that may not be available or supported with your current cash flow.
To ensure that your business does not stall even for a day, you’ll need quick business loans.
These are some of the most common circumstances that might require fast business loans. Knowing the kind of business loan to take for what situation is crucial.
Some of the best fast business loans to look out for
As a business owner, you need to know that all business loans are not the same. Each loan performs a different purpose. Some may help boost your working capital or just fill the cash flow gaps until your invoices are paid.
The loan application process also varies and so is the interest rate of each loan product.
The most prudent thing to do is compare loan offers before settling for the best and most affordable fast business loans. Whichever option you settle for, make sure it suits you best and won’t hurt your business finances.
Some of the most common easy business loans are:
Short-term business loans
Short-term business loans are ideal for short-term business needs especially those unexpected one-off expenses.
They operate more or less like term loans and have a fixed repayment term and payments.
The only difference is that these loans have a shorter repayment schedule and come with very high interest rates.
You can make an online application and be approved on the same business day.
While short term loans can help you jump on that huge opportunity, you need to have a stable cash flow to be able to make the monthly or weekly payments.
They work best if the opportunities you want to pursue promise huge returns that will help you pay off the debt without eating into your profits or affecting your bottom line.
A business line of credit
A business line of credit gives you access to funds when you need it. It’s mostly issued by conventional financial institutions and requires that you have a good credit score.
This mode of financing allows you to withdraw money from a pool that’s made available to you. You’ll pay interest on the amount withdrawn and once you are done repaying that amount plus the associated fees, your credit limit will be revolved.
A business line of credit can be made available to you for either for short term or long term needs. If you need them fast, the amount is limited to $250,000 and comes with a steep interest rate and APR.
Because of its flexibility, it’s ideal for businesses that require a cash flow cushion because it allows you to draw only when you need to.
Merchant cash advance
Merchant cash advances fall under fast business loans for bad credit because you can get them within the same business day and you don’t have to have a perfect credit score.
A merchant cash advance provider loans you a lump sum amount in exchange for an agreed percentage of your daily credit sales. It’s ideal for businesses whose owners are struggling with personal credit and cannot get conventional loans.
Take these loans only if you have a stable cash flow because they come with double digits APR and might affect your profits.
While it’s pretty common for a business to face cash crunches, it’s important for business owners to have a backup plan. Fast business loans provide the much-needed funds when you need them badly.
Fortunately, alternative lenders have made it easier to get access to quick business funding. You can save your time further by allowing us to connect you with reputable lenders to make the funding process as quick as possible. By filling out our online application forms, you save yourself the hassle of looking for lenders to work with.
Don’t miss that huge opportunity. Let us help you get the funds you need.