They say the only two things certain in life are death and taxes, but in business, there’s a third constant: the need for money. When you can’t immediately cover that need with your own cash or assets, fast business loans may help. These types of alternative funding sources can get you ample cash more quickly than more traditional lenders can. Read on to learn whether a fast business loan is right for you, what you need in order to get one, and what types of fast business loans are available.
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|Alternative lender||Time to deposit||Loan size||Collateral|
|Rapid Finance||Same day||Up to $10 million||No|
|SBG Funding||Same day||Up to $5 million||No|
|Balboa Capital||Same day||Up to $250,000||No|
|Crest Capital||Same day||Up to $500,000||No|
|Fundbox||Next business day||Up to $150,000||No|
|Accion||Varies||Up to $150,000||Yes|
With a fast business loan, you can expect the money in your bank account within a day or two. Many lenders tout speedy loan deposits, but there are some that really stood out to use when reviewing the best business loans.
This online lender provides business owners with funding the same day as approval. Rapid Finance will lend business borrowers anywhere from $5,000 to $10 million. The lender has a simple online and mobile application and fast approvals. It also has an online portal that enables you to track the status of your loan and manage it. Rapid Finance offers a variety of loan types including term loans, merchant cash advances, and lines of credit. Learn more in our complete Rapid Finance review.
SBG Funding can also fund a loan the same day it’s approved. This lender offers a variety of financing options including term loans, lines of credit, equipment financing, bridge loans, and invoice factoring. With many of these loan types, you’ll get a decision on your application in 24 hours. We also like that you can make payments on your loans either monthly or weekly, and can borrow up to $10 million. You can learn more in our full SBG Funding review.
Another lender that can fund loans the same day as approval, Balboa is also willing to work with borrowers with challenged credit scores. Balboa looks at more than borrowers’ credit scores. We like this lender uses automated decision-making technology, which quickens the approval process enabling same-day funding. Our comprehensive review of Balboa Capital has more details.
Small business owners who need fast equipment financing need look no further than Crest Capital. Through our research of Crest Capital, we found it is among the fastest lenders in the marketplace. Not to mention it has flexible terms, allowing you to finance equipment for as short as 24 months to as long as 84 months. With this lender, you can borrow anywhere from $5,000 to $500,000. As a bonus, no collateral is required, since the loan is backed by the equipment you are financing. Learn more in our Crest Capital review.
When it comes to a line of credit, Fundbox stands out in terms of the speed at which you can access your money. Fundbox utilizes digital technology that lets you connect your accounting software and/or bank account with the application. That enables Fundbox to underwrite and approve the loan quickly and in some cases fund it the same day. This online lender offers credit lines of up to $150,000 with terms ranging from 12 to 24 weeks. Our full review of Fundbox has more information.
For small business owners who need a microloan fast, we found Accion delivers. Through the Accion Opportunity Fund, this nonprofit lender provides fairly priced loans, educational resources, coaching and networking to small businesses. Accion keeps it simple with an online application that takes 15 minutes to complete. This nonprofit works with lenders in local communities, so the time to get your cash can vary. Our research of Accion found that some microloans can be funded on the same day of approval or the next business day. Learn more in our Accion review.
If your company is experiencing any of the following situations, you may want to consider a fast business loan:
There are many reasons a business owner may need to take out a small business loan. The key is to make sure the costs don’t outweigh the benefits.
When applying for fast business loans, you’ll notice that no two providers have exactly the same requirements. However, it’s generally safe to prepare the following documents before applying for a fast business loan:
Other basic business documents. You may also encounter lenders that require you to provide other basic business paperwork, such as your office lease, your basic company history and your mission statement.
You may also need to sign a personal guarantee or business lien that your lender provides. When you sign a personal guarantee, you become personally liable for any funds that your company cannot repay. Similarly, when you sign a business lien, you attach a company or personal asset to your loan, and if you can’t repay your loan, this asset could be seized.
Before you apply for a loan with a fast funding lender, get all your documentation together. Missing paperwork can slow down the loan approval process.
If you’ve determined that a fast business loan is right for you, gather the documents listed above, and then decide which of these fast business loan options may be the best fit for your company:
Just as you can easily apply for and receive personal credit cards, business credit cards are a convenient funding source for your company. Business credit cards often have low or no fees, and you can avoid interest fees if you repay your balance on time. Approval can take just moments or as long as two weeks. When you apply, you may need to provide more information than the requirements listed above, including your company size, industry and tax classification. Most of the companies and banks that offer personal credit cards also offer business credit cards.
Through invoice financing, or factoring, you can turn an unpaid invoice into a loan. This type of financing is available from factoring companies. If a client you’ve invoiced hasn’t paid you and you need their cash now, an invoice financing company can loan you that amount of money. Sometimes, you’ll get the money you need just hours after providing basic financial information to the factoring company. However, collecting your client’s actual payment – which you’ll need to repay your invoice financing loan, fees, and interest – could take much longer.
This broad category of fast business loans comprises any loans you can receive within hours or days. Short-term loans require full repayment, with fees and interest, within one to two years. Short-term lender requirements often overlap with those listed above, though they may vary by company. These loans are available online through alternative lenders.
A merchant cash advance comes from your credit card processing company. You’ll get a cash infusion from your payment processor, and in return, the processor takes a cut of all your business’s future income on that card. Alternatively, your card processor will regularly withdraw fixed amounts from your account. You can usually get cash within a day, but your loan fees may be exceptionally high.
If you’ve ever paid for an expensive item in monthly installments instead of all at once, then you’re familiar with equipment financing. With this type of fast business loan, you can get equipment immediately and pay for it over time. You can often be approved within two days, and you’ll have few paperwork requirements, since equipment financing is a low risk for the provider – the equipment itself is the collateral. If you fall behind on your payments, your provider takes back the equipment, leaving you back at square one with less cash than you previously had. This type of financing is usually available from businesses selling equipment, though many banks offer them as well.
SBA loans are often thought of as separate from fast business loans. After all, SBA loans are known for their lengthy approval periods. However, for SBA loans under $150,000, you may be able to receive funding in one week instead of several. Your requirements will be the same as they would with other lenders, but your interest rate will be lower and your repayment term longer. Though SBA loans are not as fast as the above options, the better interest rates and terms may be worth the wait.
Even if you now feel ready to start applying for rapid business funding, you may encounter unfamiliar terms and concepts throughout your application process. Whenever you have questions, you can use the business.com business loan term glossary to help. Be sure to watch out for hidden gotchas as well – you shouldn’t ignore sneaky long-term costs even if you need an immediate solution.