If you need a business loan fast, there are less places to look. At this point, you probably know that banks aren’t great when it comes to getting a business loan with fast approval.
So, let’s go over the places you can go if you’re in a rush for funding. Then, we will also go over the factors you should look out for when dealing with fast business lenders.
Where To Get A Business Loan With Fast Approval
Banks and credit unions typically offer the best rates you’ll find for a business loan. However, they’re a poor bet if you’re looking for a business loan with fast approval. Most of them will take 10 days or more to approve your initial request.
When you need a business loan with fast approval, you need to start your search online. There, you can find many alternative lenders. However, you are looking for a particular kind of alternative lender.
Often, the lenders who can provide you with the fastest business loans will advertise that fact. Labels like “same-day business lender” should be verified, but they seldom advertise their speed if it’s not a core part of their offer.
How Fast Can You Get A Business Loan?
You can get a business loan faster than ever before. While most lenders can’t give you your funds on the same day, they are almost that fast.
Financial technology has allowed lenders to streamline their application processes. Getting approved is now one of the fastest and easiest parts of getting a loan. If you want a decent but fast loan, you may need to wait a couple of days at most. The entire process, from the beginning of the application process to the moment the funds reach your business bank account, may take 24-48 hours.
Examples Of Business Loans With Fast Approval
If you’re looking for examples, try having a look at some of these lenders.
You can get a merchant cash advance from Pearl Capital in a matter of days. In many cases, it takes less than 48 hours for you to receive your funding.
Their merchant cash advance offers a unique but fast method for financing immediate expenses.
LoanMe Business Capital
LoanMe provides three business loan products:
- Premier business loan
- Small business loan
- Fixed payback loan
These options differ in their terms, but they all resemble simple term business loans. However, the real benefit is that getting your funds from LoanMe involves a process that can take less than 24 hours! Their loans are particularly fast and easy to get. They also don’t require collateral.
Kabbage Line Of Credit
If you’re looking for a more flexible option, a line of credit may better suit your needs.
Lines of credit are great long-term funding options. They also normally take a while to get. However, Kabbage offers a line of credit that can be granted to you in a few days.
Their rates are potentially high, but they’re easy to understand.
Words Of Warning On Business Loans With Fast Approval
Business loans with fast approval times are generally a trade-off. With most options that approve you in three days or less, you’ll notice one thing in common. High rates. For business financing options that don’t charge interest, you can still expect to pay a high cost one way or another.
The Annual Percentage Rate (APR) on a loan describes the total expected cost of a loan. They are often confused with interest rates, but the two are very different.
Your annual percentage rate includes interest rates and other fees. If you borrow $1,000 for one year with an APR of 10%, you can expect to pay $100 for that loan.
When it comes to business loans with fast approval times, expect higher APRs. This rule is fairly consistent.
What Can I Do To Get Lower APRs On Fast Business Loans?
Despite this rule of thumb, you won’t always have to pay a ridiculously high APR. If your credit score is higher, you will have access to better terms. Likewise, being in a strong financial situation and being experienced in business are both very helpful.
For other loan types, such as merchant cash advances, you need to pay attention to the factor rate. Factor rates are the rates at which the lender deducts a portion of your sale. In the case of a merchant cash advance, the factor rate is a portion of your credit card sales that are automatically deducted.
As is the case with APRs, you can get better factor rates when you have:
- A higher credit score
- Higher revenues
- More experience in business.
Getting a business loan fast is now simpler than ever before. You’ll have to resort to alternative lenders online if you need a loan in a matter of a few days. However, filling an application and getting approved now often takes less than one day. Depending on the lender you go to, you can possibly even receive your business funding on the same day that you apply.
Just beware of the typical traps you can fall into with fast business loans. Do the math and make sure you can afford the rates on the loans you are considering. If you can do that, fast business loans can be a great tool in a pinch.