Cash On Call: 5 Super Fast Providers of Small Business Loans

Business.com / Funding / Last Modified: February 22, 2017

Need financing in a hurry? These five lenders can provide in a matter of days–or even minutes, but make sure you do your research.

When you need to borrow money for your business, there are a number of factors to consider, such as interest rates, credit history, and collateral.

Sometimes, however, speed trumps everything else. For example, when you need a business loan to cover payroll or make an emergency repair, you can’t afford to wait.

In this article, we will tell you how to find a business loan when you don’t have much time and give you our picks for 5 super fast providers of business loans.

Related Article: Before the Business Loan: Questions That Must Be Asked

How to Quickly Get a Business Loan

If you need a business loan fast, you should be aware that ‘fast’ can mean one or more of these things:

  • Application Process: Fast to apply for a loan (i.e. not much paperwork, online application, etc.)
  • Approval Time: Fast to get approved for a loan
  • Funding Time: Fast to receive funds after approval

A truly “fast” lender should act quickly at each of these three stages. If a lender has a fast application process but takes days to approve you, that’s not very helpful. Similarly, if approval is fast, but a lender requires a mountain of paperwork to apply, that’s no good either. A fast loan should be fast from the moment you apply to the moment the money reaches your bank account.

The five lenders profiled below are quick from start to finish.

Related Article: What Should New Business Owners Expect When Requesting a Bank Loan?

5 Super Fast Business Lenders

Kabbage: Business Line of Credit

Kabbage is a provider of short-term business lines of credit. You can get a credit line of up to $100K that you can draw on as frequently as every 24 hours. You must pay back what your borrow within 6 months. To qualify, you need at least a 550 FICO score, one year in business, and $2.5K of monthly revenues.

The online application takes under 10 minutes to complete, and there’s no paperwork required. After creating a Kabbage account, you simply link your account to other online systems that you use to run your business. For example, you can link your business checking account, your Quickbooks account, or your PayPal account (don’t worry, Kabbage won’t store your passwords). Kabbage uses this real-life data about your business to evaluate your application.

After linking up your business accounts, you must provide some basic information about yourself and your business, such as your social security number, business address, etc.

Once your application is complete, you will find out instantly if you were approved for a loan. Funds are disbursed immediately upon approval. Funds sent to a PayPal account, are available the same day that you are approved. Funds sent to a business checking account are available in 2-3 business days.

You do have to pay for the speed and convenience of Kabbage. The annual interest rate typically ranges from 40 to 80 percent, which is on par with other short-term loans.

OnDeck: Business Loan for Working Capital

OnDeck is an online lender like Kabbage. They issue working capital loans between $5K to $250K that you pay back in 3-24 months.* To qualify for an OnDeck loan, you must have at least a 500 credit score, 1 year in business, and $100K in annual revenues.

The online application for OnDeck is also very quick, though it does require a bit more paperwork than Kabbage. It takes just about 10 minutes to apply. In most cases, you only have to provide basic business and personal information, such as your business address and SSN.

For larger loan amounts, you may have to submit additional documentation (e.g. some recent bank statements), but you most probably won’t have to search deep inside a file cabinet to find what you need!

Once you apply for an OnDeck loan, you will know within minutes if you are approved. The money will be deposited in your account in as little as 1 business day.   Given the amount of financing you can get through OnDeck and the speed at which you can get it, it’s no surprise that it comes at a cost. The average APR for an OnDeck loan is 50 percent.

*OnDeck also has a business line of credit product, but the qualification requirements are higher.

Behalf: Purchase Financing

For many businesses, their equipment or inventory is their lifeline. For example, if you are a restaurant and your commercial grade oven breaks, you can’t afford to wait for a new one. That’s where a lender like Behalf can help. They will pay your vendor directly so that you can get the essential equipment, inventory, or supplies that you need. Then, you pay Behalf back over the next 4 months.

Up to $20K in financing is available, and about 40 percent of businesses that apply are approved for financing from Behalf.

It helps to use Behalf when your vendor doesn’t offer extended payment terms. Behalf doesn’t check your credit score either, which makes it a good option for business owners who don’t have credit cards or would rather use their credit cards for other purchases.

Behalf is one of the fastest, if not the fastest, business lender in terms of the time it takes to get approved. It takes just 60 seconds to find out if you qualify, and there’s no paperwork required. Once you are approved, the money is sent to your vendor right away if they are already in the Behalf system. If not, it may take 1-3 business days to onboard your vendor (your vendor must agree to be paid by Behalf).

The cost, around 33 % APR, is cheaper than OnDeck and Kabbage.

Square Capital: Cash Advance for Square Merchants

Square is a popular credit card processor for small businesses. Recently, Square also began extending capital to eligible Square merchants in the form of a cash advance that is paid back with a small share of your daily card sales. Though you can borrow up to $50K, most advances are between $4K to $10K, and the average APR is 35 percent.

If you’re an eligible Square merchant, log into your account and click “View Your Options” on the Square Capital page to apply. You will find out if you qualify within 1 business day, and the funds are sent to your linked bank account immediately upon approval. Approval is based on your credit card processing volume. No paperwork is needed because Square already has access to your credit card transactions.

PayPal offers a similar program for businesses that receive payment via PayPal.

BlueVine: Invoice Financing

Many businesses face capital shortfalls while they wait for their customers to pay them for goods and services. If that describes your business, then consider BlueVine, an “invoice factor” that lets you turn unpaid invoices into cash.  

Any invoice to a business or government customer that’s due within 90 days is eligible for financing. BlueVine works with business owners that have at least a 530 credit score and businesses with at least $70K in annual revenues and 3-6 months invoicing history.

It is quick to get set up with and start using BlueVine. You simply have to create a BlueVine account and choose which invoices you want to submit for financing, up to a maximum of $100,000. You can either link up your bookkeeping software or manually submit invoices. For your first attempt, BlueVine typically takes 1 business day to approve invoices for financing.

Repeat customers can have invoices approved in minutes. Once approved, the funds are delivered to your bank account by wire (available same day) or ACH transfer (available in 1 business day).

The interest rates for BlueVine range from 28-60 percent. This isn’t cheap, but it is cheaper than OnDeck and Kabbage.

Bottom Line

If you need a loan right away, check out 1 of these 5 options. You can get funding in as little as 1 business day with these providers. For additional ideas, click here for an in-depth guide to the fastest business loans.

 

 

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