When your business is in need of cash, there are many things to consider before borrowing, including interest rates, your credit history, and guarantees. Sometimes, however, speed trumps everything. You can’t afford to wait if you need to cover payroll or an emergency repair, for example.
To help you in these situations, we’ve covered how to find a business loan when you’re short on time, our lightning-fast provider picks, and the fastest way to get a small business loan. [Read related article: Loans You Can Get With Bad Credit]
How to get a business loan fast
Before choosing and applying for a fast business loan, you should know the different ways in which a loan can be “fast”. It can mean one or more of these things:
- Application process: It is quick to apply for some loans as there is not a lot of paperwork or the application is online.
- Approval deadline: With some loans, you will know immediately or within one business day if you are approved.
- Funding time: Once you are approved for the loan, you receive the funds quickly.
A really fast lender must act quickly in each of these three steps. If a lender has a quick application process but takes days to get you approved, that’s not very helpful. Likewise, if the approval is quick, but a lender needs a mountain of paperwork to apply, that’s not good either. A quick loan should be fast from the time you apply until the time the money arrives in your bank account.
The Fastest Way to Get a Small Business Loan
Getting a small business loan has never been easier or faster. With today’s technology, many small business owners should be able to apply for a loan, get approved, and receive funds in about 24 hours.
“A small business owner can apply for a small business loan online from another lender in minutes,” said Ben Gold, president of QuickBridge. “From there, most applicants will receive a decision quickly and at best be able to have funds within 24 hours. “
While it’s easy to get funds fast now, it hasn’t always been so. Traditional banks usually have a more thorough application process, and loan approval can take weeks, Gold told business.com.
Here are five lenders who are quick from start to finish.
Kabbage: Business line of credit
Kabbage is a provider of short-term commercial lines of credit. You can receive a line of credit of up to $ 250,000. To be eligible for a loan through Kabbage, your business must have been in business for at least one year with an annual income of at least $ 50,000 or a monthly income of $ 4,200.
Kabbage’s simple online application can be fulfilled in minutes. Once you’ve created an account, you can link your account to other online systems, such as your QuickBooks, PayPal, or business checking account. Connecting a bank account helps Kabbage to make a quick decision and review the overall performance of your business.
After you link your work accounts, you need to provide basic information about yourself and your business, such as your social security number and work address.
Once your application is completed, you will instantly know if you have been approved for a loan. Once approved, commercial funds are immediately available. You will need to repay the funds within six, 12, or 18 months.
You have to pay for the speed and convenience of Kabbage. These loans come with monthly fees that vary from 1.5% to 10% depending on various factors of business performance.
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OnDeck: Business loan for working capital
OnDeck is an online lender like Kabbage. It offers term loans of $ 5,000 to $ 500,000 and lines of credit of $ 6,000 to $ 100,000. To be eligible for an OnDeck loan, you must have a personal FICO score of at least 600, a business in business for at least one year, annual income of at least $ 100,000, and a professional bank account.
It usually takes less than 10 minutes to apply, which you can do online or over the phone. After your request, a loan advisor will contact you – usually within one business day – to discuss your options. Then you can get your funds within 24 hours.
Again, you have to pay for this convenience. The weighted average rate is around 49% APR for term loans and 35% APR for lines of credit.
Square Capital: Cash advance for Square merchants
Square is a popular credit card processor for small businesses and also offers small business loans to eligible Square sellers. The capital is available in the form of a cash advance.
Small business owners who use Square can access loans from $ 500 to $ 250,000 with an average APR of 35%. You pay off your loan by direct debit from your daily card sales. Square simply requires that you have paid everything back in 18 months and meet a minimum amount every 60 days. [Read related article: How a Cash Advance Works]
To apply, Square users just need to go to the dashboard and press a few buttons. Once your request is approved, the funds may be deposited into your bank account as early as the next business day. Loan offers are based on the volume of payment processing and frequency of payments, among other factors.
PayPal offers a similar program for businesses that receive payments through PayPal.
BlueVine: Invoice financing
Many businesses face capital shortages while waiting for their customers to pay them for goods and services. If that describes your business, consider BlueVine, a billing factor that allows you to turn unpaid invoices into cash.
Any invoice to a commercial or government customer that is due within 90 days is eligible for financing. BlueVine works with B2B business owners who have a credit score of at least 530, have been in business for more than three months, and have a monthly income of at least $ 10,000.
It’s quick to start using BlueVine. All you need to do is create a BlueVine account and choose which invoices you want to submit for funding. You can either link your accounting software or manually submit invoices. On your first attempt, BlueVine usually takes one business day to approve finance invoices.
Regular customers can have their invoices approved in minutes. Once approved, funds are deposited into your bank account by wire transfer (available same day) or ACH wire transfer (available within one business day).
Fund of funds: business credit
With Fundbox, business owners can apply and find out if they’re approved within minutes. Fundbox offers up to $ 100,000 in credit. Business owners must have a credit score of at least 500.
When you apply, all you need to do is share basic information about your business and connect your accounting software or bank account. Once approved, funds can be transferred as early as the next business day.
Your loan is repaid in equal installments over 12 to 24 weeks. You will need to make weekly payments of 0.5% to 0.7%.
Getting a small business loan fast can be easy
If you need a loan right away, check out some of these options. Whichever lender you choose, it’s important to do your research.
“Not all fast business loans and lenders are created equal,” Gold said. “Do your research on the different lenders and loan options in the space, read reviews online, and don’t be afraid to ask questions. Make sure you know what you’re getting into before signing on the dotted line. . “
Marc Prosser contributed reporting and writing for this article.