Entrepreneurship is a constant struggle with many twists and turns. At some of those turns, quick small business loans are the way to go. They can help you transform a new idea into a reality when used responsibly. Alternatively, they can help you get through a challenge that would have otherwise threatened one of those new ideas.
There are many uses for a quick small business loan if you’re an entrepreneur. This is true whether you’re launching a new startup or maintaining an old business. However, there are also problems that you need to look out for and perhaps prepare for when you’re searching for and using these loans.
Let’s have a look at how entrepreneurs can use quick small business loans to keep pushing forward.
Entrepreneur vs Business Owner
First of all, why do entrepreneurs have their own needs when it comes to business financing? Aren’t entrepreneurs just business owners?
Many people believe that the terms “entrepreneur” and “business owner” are interchangeable. They are not.
Entrepreneurs are most often also business owners, but business owners are not often entrepreneurs. An entrepreneur is an individual who is always looking to change the status quo. They are always looking for new solutions to problems new and old. Entrepreneurship describes a way of life and an entire mentality of its own.
Business owners who are focused on one business, one passion, have their own uses for quick business funding. However, we will be delving into the uses these loans have for entrepreneurs, serial business owners and the self-employed who take it upon themselves to tackle the difficult, interesting, and profitable corners of the market.
What Are The Best Quick Small Business Loans For Entrepreneurs?
The needs of a serial entrepreneur are a bit different than the needs of a typical business owner. Reliable financing for both hard times and planned adventures is what an entrepreneur needs. This makes a line of credit one of the most important quick small business loans an entrepreneur can have.
Business Lines Of Credit
A line of credit can help finance the next big thing any entrepreneur has in their mind. It doesn’t particularly matter what that specific idea is. The important thing is that you as an entrepreneur are equipped with the financing you need and the control over how you use it.
With a line of credit, you will usually have access to a greater sum of funds than you would with other loan options. But the real benefit is that you can have more control over how much you borrow and thus how much you pay back.
The right business line of credit can also serve as the perfect backup financing option. If you take a line of credit that doesn’t have regular fees or terms that entice you to pull funds quickly, you have a great backup plan. In fact, some business lines of credit are meant to be used as a financial parachute for when anything goes wrong.
Inventory loans are a lot like term loans. The main difference is that they are only meant to be used to purchase inventory. They use the inventory you purchase as collateral, so you don’t lose it unless you fail to sell the inventory.
Keeping up with inventory and purchasing new kinds of inventory are regular problems for so many entrepreneurs. In these cases, you will want to have a fast option to make the purchases you need to. Fortunately, many business lenders understand the problems faced by entrepreneurs starting new businesses. So, inventory loans are another quick business loan option that’s useful to entrepreneurs.
Business term loans are simple and widely available. Sometimes, a simple loan is all you need. You can get a quick business term loan very easily if you need to pay for any expected expense.
Merchant advances are fast, flexible solution that is an alternative to other business financing options. It doesn’t require any collateral, making it an easy option for many new businesses. Typically you must be in business for at least 6 months and have monthly revenue (i.e. deposits into a business checking account) of $15,000 or more.
Some direct small business lenders include:
- National Funding – offers small business loans and merchant advances
- Skybridge Funding – offers a merchant advance
- MainStreet Finance Group – similar to all the above
Other companies offer a “marketplace” of lenders that enable you to get the best offer:
- Become Financial – a very unique algorithm guaranteeing you the best deal
- LendingClub – a peer-to-peer lender offering SMB loans as well as personal
Where Do You Find Quick Small Business Loans?
If you need a loan fast, alternative lenders are where you need to look. While banks offer better rates, unless you’ve already opened a line of credit with one, you will have to look online if you need funds in a few days or less.
Many online lenders can get you any of the above options in a matter of one to three days. That even goes for lines of credit. If you have a decently high credit score and some business experience, you can access tens of thousands of dollars in less than a couple of days.
Words Of Warning with Quick Small Business Loans
Quick small business loans are great because speed is always a serious benefit for a busy entrepreneur. Just be aware of the downsides to these loans. Fast business loans often have high interest rates, so make sure you have a plan no matter how small the loan you need is.
Look out for hidden fees that come with some fast business loans. Prepayment, application, and origination fees can add up as well. These should all be considered when you are looking for a quick small business loan.