Get a Small Business Loan Within 24 Hours or Less With These Options
Business owners know that obtaining a business loan or business financing from credit unions or other financial institutions today is virtually impossible. That lack of funding makes it hard to grow your business and manage your cash flow. Getting a fast business loan today is hard if an unexpected opportunity or expense presents itself. Mainly if you need a small business loan for your business, and you do not want a personal loan based primarily on your credit score. Generally, running a small business is both rewarding and challenging. As business owners, it is also very stressful without working capital or proper funding.
That is particularly true when you urgently need cash fast within a day and do not have time to wait for funding from a traditional lender. A bank business loan can take ninety days. You need funding options for fast capital or cash advance with a lending partner that seeks a long term relationship while offering unsecured business loans at an attractive interest rate. The challenge most business owners experience is the issues with their credit history and the credit limits on their credit card.
There are two critical difficulties with this method. First, most business owners utilize a personal credit card. Once you put a business expense on the credit card, you blur the lines between personal and business use. The IRS might challenge your expenses, and it is simpler to pierce the corporate veil. Second, you are reducing your credit utilization, which can hurt your credit limit and credit score. Lastly, as your credit limit reduces, it can cause a cascading impact across all moneylenders looking at your credit profile. What you require is access to a business funding and financing option that provides a quick and easy fast business loan.
What is the fastest business loan to get in days, weeks or months?
The easiest fast business loan is one that needs a simple one-page application and the last three months of business bank statements to receive a funding option. We have researched a variety of lenders to find the best that provides fast loans.
Kabbage does not provide a business term loan product; instead, they are an online lender that offers a business line of credit. They are worth mentioning here since business owners can receive funds from Kabbage the same day they apply. This is what you need to know about Kabbage loan:
- Minimum qualifications and requirements: At least one year in business, with a minimum of $50,000 in annual business revenue.
- Time of approval and funding: Kabbage’s online application process often takes around seven minutes to complete, and you can get money the same day.
- Required paperwork: Together with basic information – business address, credit scores, tax ID, and SSN- Kabbage looks at the online systems utilized by your business. It takes information about your business from online systems such as Etsy, QuickBooks, PayPal, and Amazon to assess your creditworthiness.
- How much money can you borrow: You can borrow from $2k to $100k. Kabbage will provide you a maximum credit limit, which you can borrow against. You will only need to draw on the credit line as required, without ever having to utilize the full amount and you will only pay interest on the money you use.
- How long can you borrow the loan: You can borrow either for six or twelve months, with payments automatically charged from your bank account monthly.
- Collateral and personal guarantee: While Kaabbage does not require a personal guarantee, it does put a lien on your basic business assets for loans that are over $20K. Your company assets can be seized if you do not repay the loan; however, your personal assets can not.
- Fees and APRS: The APR for a Kabbage loan ranges from thirty-percent to one-hundred percent. Most of these fees will be charged in the first two months, even though you can save money by clearing the loan off early.
OnDeck’s short-term business loan product enables business owners to quickly take advantage of opportunities or tackle hindrances that they encounter. Contrary to OnDeck’s merchant cash advance, an OnDeck short-term small business loan reports payment history to business credit bureaus, therefore helping you build your business credit. More about OnDeck:
- Minimum qualifications and requirements: At least one year in business, a personal credit score of 500 or higher, with a minimum of $100,000 in annual business revenue.
- Approval time and funding: OnDeck’s loan application process takes about ten minutes. By applying online or over the mobile phone, you can receive funding as fast as within one business day after you are approved. Having the necessary documents ready, being prepared, and offering thorough information can help speed up the process.
- Required paperwork: Bank statements for the last three months, business tax ID, credit card and merchant processing statements for the previous three months (if applicable) and the SSN of a business owner (s).
- How much money can you borrow: You can borrow from $5 to $500k. You will generally qualify for a ten-percent loan to fifteen percent of your business’s annual gross revenues.
- How long can you borrow the loan: The repayment term can be from three months to three years, with payments automatically debited from your bank account daily or weekly.
- Collateral and Personal guarantee: OnDeck requires a personal guarantee and places a lien on general business assets.
- APRs and Fees: OnDeck loans range from 20 to 40-percent APR, and the APR on their cash flow loans can be up to 100-percent APR.
Merchant Cash Advance (MCA)
If you accept credit cards and you have a relatively consistent flow of credit card receipts flowing through your business, an MCA can be a viable option for your business. Even though a merchant cash advance is not a loan, but rather an advance on your credit card sales, most providers can provide you an answer to your loan application the day you apply and can have money in your account within one day or two after that. The cost of an MCA will possibly exceed the costs of an unsecured business loan from most online lenders- including the two discussed above.
Other fast financing options
Lastly, let us take a quick look at a few more affordable options for fast business funding. While these approaches might not be as fast as going to new online lenders such as Kabbage and OnDeck, based on the business need you are trying to meet, the extra effort might be worth it, in the long run, the amount of money you stand to save.
Credit cards do not always seem an obvious choice for business owners looking for fast business loans; however, if used well, they can be a quick and easy source of business capital. If you have moderately good credit, you might want to contemplate getting a business credit card. The suitable way to use these cards is to pay the full balance per month. As you do so, you will keep the credit limit available for those times when you need access to a fast loan and increase your business credit score. The average Annual Percentage Rate for a credit card is sixteen-percent, a significantly lower than some of the options we have discussed. And whereas it is true that you are limited to your credit line concerning what you can and can not buy, another advantage of credit cards is that most of them offer introductory zero-percent interest rates and rewards like cashback with purchases, hotel stays and frequent flier miles.
SBA 7(a) Express loan
As far as your credit is solid, and you can wait a week or two for the loan, SmartBiz specializes in issuing SBA loans in under seven days. This only relates to SBA loans under $150K (larger loans still take four to six weeks on average). The good thing about an SBA loan is that it will provide some of the lowest interest rates for which your company can qualify.
Do you have irregular cash flow because you are often waiting for your customers to pay you for the provided products or services? Invoice financing, also called invoice factoring, can be a good option for B2B businesses with long invoice cycles. Invoice financing enables you to get paid immediately instead of waiting for your customers to pay you. An example is BlueVine that B2B businesses might want to consider.
Friends or family
No one likes doing this: it is hard and feels embarrassing, with the potential for injured relationships down the road. However, loan forms, family, or friends remain an incredibly popular way for many businesses (of all sizes) to find capital. If you have somebody you particularly trust, and who in turn, has faith in you and your small business, receiving a quick business loan this way is not a bad way to go.