6 Quick Business Loans For Small Business Owners
While it’s pretty common for business expenses to pop up when you least expect them, getting quick business loans in as soon as 24 hours from traditional financial institutions can be a major challenge for small businesses.
Most of these institutions will require tons of paperwork and insist that you to meet their stringent eligibility requirements before your loan request is approved.
Since time is a luxury for any small business owner, they are forced to seek out alternative lenders who can give them access to funds within the same business day.
In this article, you will learn everything you need to know about the different types of fast business loans that can tide you through a financial shortfall.
6 Quick Business Loans
- Short-term business loans
Depending on your company’s financial status and creditworthiness, you can borrow as much as $2,500 to $250,000 payable within 3 to 18 months.
This form of business funding is only good for emergencies because they come in double-digit interest rates.
You can use these loans to boost your cash flow and take advantage of that business opportunity or solve an emergency situation before it affects your business.
Usually, you’ll either make daily, weekly or monthly repayments depending on your agreement with the lender.
Your business, therefore, has to have a stable cash inflow to service the loan.
- Short business capital loans
With equipment financing, you can purchase state-of-the-art cooking equipment for your business.
These loans are ideal for restaurant owners looking to upgrade their kitchen so that they can become more efficient in service delivery or budding chefs starting out their career in the hospitality industry.
The beauty with this mode of financing is that you don’t need collateral because the piece of equipment acts as security until you repay the loan in full.
- Inventory financing
You don’t have to wait for your customers to clear their invoices for you to pay your employees, order inventory, pay taxes or fix that machine that suddenly stalled.
It’s possible to get access to quick cash that’ll help your business meet its short-term obligations without draining your personal finances.
A short-term business capital loan can inject into your business the working capital it requires during a financial shortfall.
These loans have flexible repayment structures and don’t require any collateral. They are also easy to access, and interest rates vary from 7% to 99% annually.
Since these loans are meant to boost your short-term working capital needs, you can borrow amounts ranging from $2,500 to $250,000 with a repayment term of 3 to 18 months.
You can apply for working capital loans by filling an online application form from a trusted lender and have the funds credited to your bank account on the same business day.
- A business line of credit
If you have fluctuating business needs, a business line of credit is your best bet.
With this mode of business funding, a lender allows you access to a pool of funds that you draw from any time you need cash as long as you don’t exceed the limit. You then pay interest on the amount drawn, and the funds are revolved almost immediately. It acts like a credit card.
A business line of credit allows you access to small business loans worth $10,000 to $1 million payable within 6 months or 5 years. The interest rates range from 7% to 25%.
The only downfall with this mode of funding is that your lender may close the line of credit unexpectedly, ask of constant financial updates from your business or may require you to offer collateral before approving your request.
- Merchant cash advance
You can get a lump sum to help with your immediate business needs in exchange for your future projected revenue. The merchant will lend you money for a percentage of your credit sales.
This mode of funding is ideal for businesses that are struggling with cash flows and have bad credit.
You can borrow from $2,500 to $250,000 and make daily, weekly or monthly repayments depending on your agreement with the lender.
Lenders usually charge a factor rate instead of the usual interest rate. This makes cash advances an expensive option to fund your business needs.
You, therefore, need a stable cash flow to make repayments easily without affecting your bottom line.
- Invoice financing
Allows you to use your account receivables to access funds.
Instead of waiting for customers to pay their invoices, you can use them as security to get funds and meet your immediate businesses finance needs.
The lender will give you a lump sum in exchange for a percentage of your invoice value and a fee.
Interest rates vary significantly with lenders, but the approval rate is pretty fast, and you can get funds within the same business day.
Most lenders will focus on the value of your invoice than any other aspect of your business before approving your loan request.
- Invoice factoring
Instead of using your invoice as collateral to get funding, factoring involves selling the invoices to the lending company who’ll then give you a percentage of the amount you need, and pay the rest when the customer pays up the amount owed.
Usually, the lenders focus on the value of the invoices, your credit and that of your customers.
The factoring company will, therefore, take charge of tracking payment from your customers and will charge you a fee for that.
You can apply for these quick business loans online and get immediate approval.
They, however, come with a steep APR and should only be used for short-term financial needs.
To get fast business loans really quick, you’ll have to follow the following steps:
- Apply online – you can apply for quick business loans by filling out the lenders’ loan application forms available on their websites. Most lenders have simplified their application process, and it’s pretty easy to navigate through in less than 5 minutes.
- Wait for approval – you’ll need to wait for the lender to go through your application and check if you are eligible for funding. The approval rate, however, is fast and you’ll get notified if your request was approved or not within minutes after your application.
- Funds get credited to your bank account – if your request is approved, your lender will send you their terms and conditions, and once you append your signature on the loan agreement form, the funds you requested will be credited to your account on the same business day and the deal closed
In business, unexpected expenses can pop up when you least expect or are prepared to handle them. It is, therefore, important to have some funds set aside to handle contingencies or have access to guaranteed business loans from trusted lenders to help tide you through such financial shortfalls.
We can connect you with our trusted lenders who will approve your loan request in less than 24 hours and have the funds that you request credited to your bank account on the same business day. Fill out our online loan application forms and let us help you get the funding that you need.