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You’re a small business owner. You run a bakery in your local neighborhood.
People can’t seem to get enough of your cakes! You received rave reviews online from satisfied customers.
One day as you’re going about your business, you receive a phone call. It’s a pleasant lady from the huge events management company you’ve always dreamed of working with.
She proceeds to inform you that they’d be hosting a three day fair in town. You’ve been hand-picked to supply 7000 cupcakes! It’s the opportunity of a lifetime.
There’s only one problem. You need help. Financial help in the form of quick business loans that’ll help you get the labor and supplies you need to pull this off.
If you own a business, you’ve probably found yourself in a similar predicament more often than you’d care to admit. And, let’s face it. For your business to expand you need money.
Thankfully, there are many alternatives that offer competitive credit lines without the lengthy application process synonymous with banks.
Below are our top picks for quick business loans.
1. Short-Term Loans for Fast Business Cash
When you need a lump sum of cash fast, a short-term loan is the way to go. These loans get disbursed within 2 to 3 days and have a repayment period of 12 to 18 months.
Although the interest rates are higher, the trade-off is that you qualify for them much easier. Repayment options vary from daily to weekly.
Depending on your credit score, you can qualify for a loan amount that runs up hundreds of thousands of dollars. Short-term loans suit one-off business expenses.
2. Short-Term Lines of Credit
If waiting 2 to 3 days to get your loan isn’t a viable option, then you could explore short-term lines of credit. They fund within a single day!
Unlike other quick small business loans, the repayment terms are usually less than a year. The application process is pretty straightforward and approvals happen instantly.
If you have a high credit score, you can qualify for higher amounts. Repayment options are flexible allowing for either weekly or monthly repayments. Lines of credit can be backed by collateral or by your personal guarantee depending on the loan amount you request for.
As reasonable as the interest rates may be, going over your credit limit or making a late repayment could see the rate spike.
3. Equipment Financing
This is perfect for business owners in dire need of a fixed asset – fast! This could be anything from plant machinery to vehicles.
The beauty about it is you could end up receiving up to 100% of the total cost of the equipment in as little as two days!
4. Invoice Financing
Dealing with slow paying customers can really cramp your growth. To be honest, at some point, your business will inevitably face this challenge.
How can you mitigate this? By simply using your accounts receivable as a line of credit.
Your business can sell its unpaid invoices to a credit financing company in exchange for quick business finance. This could be anywhere between 50% and 90% of the invoice value.
This option funds within 1 to 3 days.
5. Quick Business Loans from Merchant Cash Advances
If you don’t qualify for other business cash loans, then a merchant cash advance is your next best alternative.
These loans are disbursed fast and are accessible without much red tape compared to other financing options. Anytime there’s no underwriting required on a loan, expect to access the cash faster.
There’s a catch though. They’re the most expensive way to secure cash for your business. Only use this option when you’re 100% sure you can rely on your customers to pay you what they owe you.
6. Working Capital Loans
With these fast business loans, you can borrow up to $250,000 and have the cash wired to your account in as little as 2 days. It comes in handy when your business needs to meet urgent short-term goals.
These could be anything from making the payroll to ordering inventory to addressing any other temporary cash flow need. Say for instance an opportunity arises that depletes your working capital. This loan will ensure things continue to run smoothly.
7. Personal Loans
This may be unconventional, but it is a legitimate source for fast financing. Here’s why. If you have a high personal credit score that allows you to access credit at low interest rates, why wouldn’t you use it?
Your business may have a limited credit history that prevents you from qualifying for a business loan. And with personal loans, you’ll enjoy repayment periods of up to 7 years depending on your lender and your credit-worthiness.
Personal loans are typically approved within 24 hours and funded within a few days. The application process is much easier than that of business loans. It is definitely an option worth considering.
8. SBA (Small Business Administration) Express Loans
Unlike traditional loans, SBA Express Loans have fewer requirements and fund small businesses with long-term working capital. Interest rates are slightly higher than the usual but offer a flexible repayment period of up to 10 years.
SBA loans usually take between 3 and 90 days to fund. The SBA, a US government agency, guarantees 50%. However, one must be able to demonstrate and qualify the business purpose for the funds, before the application is approved.
9. Microloans
A microloan is quite similar to a short-term loan. These loans, however, have a slight edge given that the repayment period is longer.
More often than not, they also target disadvantaged communities. Borrowers also enjoy low-interest rates and are typically funded within 5 days.
10. Business Term Loans
If you want to finance a specific one-off investment for your small business then fast business cash in the form of a term loan is the way to go.
It comes with a predefined repayment duration which is typically between 1 and 5 years. Funds are available to the business in 2 to 5 days.
Since the repayment terms are flexible compared to other short-term loans, your business’ credit score and financial data need to meet a certain threshold before you can qualify.
11. Startup Business Loans
Any new business owner can attest to the fact that the single greatest challenge they face is trying to get financing. Banks are usually reluctant to fund startups for the simple reason that they consider them high-risk.
According to the US Bureau of Labor Statistics Business Employment Dynamics report, only 79% of businesses survive past their first year with a marked decline in the years after. It’s not surprising, therefore, that banks turn their nose up to these applications.
Even so, who needs banks when business cash loans from private lenders exist for just this purpose? Small businesses with little to no substantial business history can receive funding in as fast as 2 weeks!
The loan term runs up to 4 years giving you ample time to grow your business while making flexible repayments.
12. Inventory Loans
Imagine if your customers walked into your store only to find their favorite brands of merchandise missing from the shelves? Well, with proper financing, you won’t ever have to live this nightmare.
Before taking out this loan, ensure that it makes sense for your business. If the total cost of borrowing is necessary for you to generate more profits, then, by all means, go right ahead. Ideally, your inventory should turn in a couple of months.
It’s for this very reason that inventory loan repayment periods run for 6 months on average. They provide quick business finance since they’re funded within a couple of days. They also have very fast application and approval processes.
13. Expansion Loans
There comes a time in every business when you have to take your business to the next level. Expansion loans are there to help you fuel a growth opportunity that would otherwise not be possible.
Timing, however, is everything. The right loan at the wrong time could end up negatively impacting your business. Therefore, ensure that your business is creditworthy and has an adequate cash flow to make regular and timely repayments.
Repayment terms vary depending on the nature of your expansion plans. Weigh your options to determine whether a short term or long term loan makes the most sense for your business.
The application process is easy, quick and funding occurs in 24 hours to a couple of days at the most.
Final Thoughts
Before applying for business funding, identify your purpose for borrowing. It must be clear as day in order to select an option tailored for your business needs.
Quick business loans are instrumental in driving business growth and continuity when you lack the means to fund it yourself. The best part about it is that one doesn’t have to endure lengthy application processes then wait for eons to find out if the loan was approved.
Your business gets funding in under a week, tops.
If you’re applying for a loan for the first time, the process can be daunting. Check out easy first time loans for your business to learn how to go about it.