Fast Small Business Loans

How Do Speed and Convenience Affect Cost?

The tradeoff for the speed and convenience of quick business cash loans and financing is higher rates and shorter terms. Online lenders, due to their quicker vetting processes and willingness to work with business owners with less-than-perfect credit, assume greater risk.

As a result, while small business owners can obtain a loan swiftly, they often face shorter repayment periods and higher interest rates compared to what conventional lenders typically offer.

• Small Business Tip:

  If your credit history and sales records are strong enough to qualify for a bank loan, carefully consider your options. While applying for a bank loan may take time, it could potentially save you money on interest if approved.

  Assess whether you require immediate funding or if you can afford to wait for the approval process of a business loan from a bank.

If you’re looking for fast funding business loans, you have plenty of options. The right choice will depend on the amount you need, your creditworthiness, and your business profile. 

Here’s a breakdown of various quick small business finance options, including minimum qualification requirements you’ll find within our network of lending partners.

Term Loans: Funding as Fast as 1 Day

Online term loans provide a straightforward alternative to traditional bank loans, offering substantial principal amounts and extended repayment terms. However, the loan amounts may be capped lower compared to those offered by large banks.

Your credit history plays a crucial role in determining the interest rate you receive. Unlike banks, online lenders can approve you for fast business loans in as little as 24 hours, with funds deposited the following business day. Term loans are ideal for covering significant business expenses such as commercial real estate purchases or launching new products.

Short-Term Loans: Funding as Fast as Same Day

If you require a sizable sum promptly, a fast short-term business loan might be the optimal solution for you.

With iBusinessLender, you could have a short-term loan deposited into your bank account within 24 hours.

Short-term loans are excellent for various needs like equipment upgrades, expanding your workforce, and managing operational expenses. They can also help alleviate cash flow disruptions caused by delayed customer payments.

Business Lines of Credit: Funding as Fast as 1 Day

If you value flexibility, a business line of credit stands out as an excellent choice for quick financing. Once approved, you can withdraw funds as needed up to your preapproved credit limit. Interest is only charged on the amount you use.

Think of a business line of credit as a ready-to-use loan. Whether for emergencies or ongoing cash flow requirements, you have instant access to funds. As you repay the borrowed amount, your credit line replenishes, enabling you to reuse available funds whenever necessary.

Accounts Receivable Financing: Funding as Fast as Same Day

Accounts receivable (AR) financing, also known as invoice financing, involves selling unpaid invoices to receive an advance worth a percentage of their total value.

For small businesses dealing with outstanding customer invoices, AR financing is crucial for managing cash flow. Typically, you can access up to 80% of the face value of your invoices. Funds from this fast business funding option can be deposited into your account in less than a day. Instead of accruing interest, fees are calculated using a factor rate until your customer settles the invoice.

Discover Your Best Business Loan Options

Merchant Cash Advances: Funding as Fast as Same Day

Merchant cash advances (MCAs) offer an alternative to traditional small business loans, providing instant approval for funding needs. Although not a loan in the conventional sense, an MCA provides a lump sum of cash that must be repaid over a specified term with interest.

Repayment of MCAs typically occurs through automated clearing house (ACH) payments or by deducting a percentage of each debit or credit card transaction.

iBusinessLender’s MCA partners use factor rates to determine the borrowing cost. Payments are drawn daily or weekly until the original balance plus the lender’s fees are fully paid off.

MCAs serve as a viable option for fast business funding, especially for covering emergencies or immediate expenses like payroll. They are particularly beneficial for borrowers who may not qualify for other types of quick small business loans.

Related: Is a Merchant Cash Advance Right for Your Business? The Pros and Cons

Equipment Financing: Funding as Fast as 2 Days

Equipment financing offers an excellent choice for fast business loans, particularly for industries dependent on cutting-edge and reliable equipment for operations.

When crucial machinery malfunctions or when you require new equipment to expand your business, equipment financing can provide up to 100% of the equipment’s value in as few as 2 days.

The equipment serves as collateral for the loan, making this option viable among quick business loan solutions, especially for companies with limited or no collateral available.

SBA Express Loans: Funding Within 7-60 Days

SBA Express loans offer a middle ground between traditional bank loans and fast business funding available from online lenders. This option combines benefits from both worlds, partly due to the involvement of the Small Business Administration (SBA).

If you can afford to wait approximately a month for funding (considerably faster than most bank term loans) and meet the qualifications, applying for an SBA loan is an excellent way to finance your business. Typically, SBA loans offer more affordable terms compared to alternative financing options.

The SBA guarantees up to 50% of the loan amount for Express loans, reducing risk for lenders and expanding access to funding for businesses that may not qualify otherwise. However, stricter eligibility requirements are enforced compared to those of alternative lenders.

Related: What Are the Current SBA Loan Rates?

To provide rapid, same-day small business loans, online lenders focus on streamlining the application process. This minimizes your workload and reduces the waiting time for accessing essential funds.

Consider iBusinessLender’s approach as an example. Partnering with leading online lenders, we operate a marketplace that simplifies your application by comparing offers on your behalf, ensuring you secure the most favorable terms. It’s straightforward, involving just a few easy steps to complete.

• Step 1: Answer a few basic questions to tell us about your business history and finances.

  Step 2: Tell us about you so we can determine your eligibility.

  Step 3: Connect your bank account, so we can verify financial information.

  Step 4: Choose your offer and get your money deposited directly into your bank account, sometimes within hours.

If you need fast funding for your business loans, make sure to have everything on hand before applying.

Having the following available will help you complete the application and finalize the funding process:

• Proof of identification and address
• Last 4-6 months of bank statements
• Tax returns
• Voided check
• Balance sheet, income and profit-and-loss statement (required for term and SBA loans)

Indeed, same-day funding of business loans is available. In fact, depending on the strength of your application, you could have your funding within hours.

A Few of the Best Lenders for Fast Business Loans

Here are some of the top lenders we collaborate with, providing rapid business loans, with the potential for same-day funding in certain instances.

All of these lenders have earned an “Excellent” rating on the well-regarded consumer review site Trustpilot. Furthermore, they are accredited by the Better Business Bureau (BBB). OnDeck and Credibly have achieved the BBB’s highest A+ rating, while SmartBiz holds a B rating.

*The rate is a simple interest rate calculated from total repayments over 26 weeks