Need a business loan right now? Here’s how to access cash fast.
Cash flow can be tricky, especially when you’re running a small business. If you’re in need of fast funds to fill orders or for any other business expenses, you have a few options to consider.
How fast can I get a business loan?
Turnaround times differ between lenders, but with many providers popping up in the online small business finance space, turnaround times have shortened significantly in recent years. Many online lenders can now process your entire application without any physical paperwork. What used to take weeks to underwrite, approve and fund now only takes a few hours to days.
Turnaround times of five top online business loan providers
|Turnaround time||Max amount||Requirements|
|OnDeck||As fast as 24 hours||$500,000||Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.|
|Lendio||as little as 24 hours||$5,000,000||Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.||Read review|
|Kabbage||Next business day||$250,000||Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.|
|LendingClub||As little as one week||$300,000||2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit|
|SmartBiz||As fast as 7 days||$5,000,000||650+ personal credit score; US citizen or permanent resident; 2+ years in business; $50,000+ annual revenue; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.|
How much can I borrow with a fast small business loan?
For quick funding, you can usually borrow between $2,000 and $500,000. Anything more than that could take some time. The amount you can borrow depends on a variety of factors, including:
- The amount of cash flow your business has
- The reason your business needs the funds
- How long the business has been around
- The credit history of the owner of the business
It’s ideal for you to think about these things before applying because they’re considered by lenders when deciding whether or not you and your business are eligible for the loan.
What types of business loans can I get quickly?
You have several different business options loans if you need fast cash for your business, including
|Type of financing||How it works||How long it typically takes to receive funds|
|Business term loan||Borrow an amount of money and repay it plus interest over a fixed period of time.||One day to a few weeks|
|Line of credit||Get ongoing access to funds up to a specified credit limit. You can draw up to this limit when you need to and only repay the funds you use.||A few hours to a few days|
|Business credit card||Similar to a personal credit card except the funds are used for business purposes only. The card account can also come with extra features such as additional cardholders or rewards points for the business.||2–3 weeks|
|Invoice financing||Borrow against your outstanding invoices and receive 80-90% of the invoice amount from the lender.||1–2 days|
|Equipment financing||Buy or lease equipment with long repayment terms and competitive rates.||A few days to a few weeks|
|Merchant cash advance||Get an advance on future sales with this type of business financing that you repay with a percentage of your sales revenue.||One day to a few weeks|
Want a term loan fast? Consider a personal loan
If you’re looking for a business term loan, you might get a quicker response if you apply for a personal loan instead. Lenders tend to process personal loans faster because they have less factors to consider — they don’t have to go over business plans or long financial records.
To qualify for most competitive personal loans, you’ll need to have good personal credit and a low debt-to-income ratio.
What should I look for in a business loan besides speed?
When comparing business loans, you might want to look into a few other factors besides turnaround time. These include:
- Loan term. Loan terms for business loans differ and can be for as little as three months to up to 25 years. Other products such as line of credit products offer ongoing terms.
- Upfront and ongoing fees. These can include application fees, loan origination fees, monthly fees and annual fees, which could greatly affect the total cost of a loan.
- Interest rates. Interest rates may be standard annual rates or factor rates that are calculated monthly.
- Secured or unsecured loans. If you have business or personal assets to attach to the loan, you may want to consider a secured business loan as it can offer more competitive rates.
How can I make sure I get my funds quickly?
The first way to do this is choose a lender that has a quick turnaround time. Then it’s up to you to make sure you have everything in order before you start your application.
Go over your finances to figure out what type of funding you need and how much. Have all documents and information you might need on hand. These can include:
- Bank statements. It’s common for lenders to ask for three months of statements from your business’s bank account.
- Your business tax ID. Some lenders ask applicants to provide their tax ID, also known as an Employer Identification Number (EIN) which you can usually on your business tax forms.
- Driver’s license. There’s a chance you’ll be asked to provide a driver’s license number when you’re applying for a loan.
- Login credentials for accounting software or bank accounts. Many speedier lenders use underwriting software, which sometimes requires access to your business’s accounting software or bank account to assess your eligibility.