Business Loans

Fast Business Loans: Options For Quick Cash in September 2024

Sep 09, 2024 • 10+ min read
Small business owner securing capital for their business
Table of Contents

      When your business needs a quick cash infusion to deal with unexpected expenses, seize growth opportunities, or meet urgent operational costs, fast business loans come to the rescue. These loans are designed for swift approval and funding—often within 24 hours—making them an ideal choice for situations where traditional loan processes may be too slow. 

      This guide will walk you through the various options for a quick business loan, helping you make an informed decision that suits your business needs.

      Apply for a business loan fast.

      Apply online with a quick, 15-minute application.
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      How much money are you looking for?

      Fastest types of business loans.

      Here are five quick business loans and other financing structures that provide fast approval times, as well as quick funding. The terms and repayment structures vary for each type of loan or financing, so take a look to see which might be the best option for your company.

      Financing typeHow it worksTime to funds*(after approval)
      Line of creditDraw as much or as little money as you need up to a set credit limit.As soon as same business day
      Term loanReceive a lump sum of cash repaid in monthly installments.As soon as same business day
      Equipment financingReceive a lump sum used to purchase approved equipment.As soon as same business day
      Business cash advanceReceive an advance on expected future revenue repaid in daily or weekly installments.As soon as same business day
      Invoice factoringSell your invoices at a discounted rate to get access to expected income faster.As soon as same business day
      *Varies by lender

      1. Business term loan

      A term loan is a lump sum of cash that is repaid with interest over a set period, typically ranging from one to 10 years. These loans are available through traditional banks, as well as alternative lenders and online platforms. The application process can take anywhere from a few days to several weeks, but certain lenders offer expedited approval and funding for those in need of fast business loans.

      Features of a business term loan are as follows:

      • Loan amount: $5,000-$2 million
      • Loan repayment term: 1-10 years
      • Interest rate: 8.49% and up
      • Funding time: As soon as same business day
      Lender/funder*Minimum time in businessMinimum credit scoreMinimum annual revenueTime to funds(after approval)
      Funding Circle2 years660$50KAs fast as 3 days
      BHG Financial (BHG Money)2 years700$1M
      $100K for licensed professionals
      As fast as 3 days

      Compare business term loan lenders.

      2. Line of credit

      A business line of credit is similar to a credit card. You have a credit limit you can draw upon at any time, and you pay interest only on the amount you draw. A line of credit can help cover short-term needs such as paying for inventory or seasonal changes in cash flow.

      Features of a business line of credit are as follows:

      • Loan amount: Up to $250,000
      • Loan repayment term: 6-18 months
      • Interest rate: 8% and up
      • Funding time: As soon as same business day
      Lender/funder*Minimum time in businessMinimum credit scoreMinimum annual revenue Time to funds(after approval)
      BlueVine6 months625$120KSame day
      OnDeck1 year625$100KSame day

      Compare line of credit lenders.

      3. Business cash advance

      A cash advance isn’t a loan but a cash advance based on future sales. This makes qualifying easier since the financing company considers revenue and sales more than your credit history. The repayment is an agreed-upon percentage of your income that comes directly from your bank account each day until your balance is repaid. This type of financing is ideal for companies with stable cash flow.

      Features of a business cash advance are as follows:

      • Loan amount: Up to $2 million
      • Loan repayment term: 3-36 months
      • Factor rate: As low as 1.08
      • Funding time: As soon as same business day
      Lender/funder*Minimum time in businessMinimum credit scoreMinimum annual revenueTime to funds (after approval)
      Kapitus2 years650$250K1 business day
      OnDeck1 year625$100KSame day

      Compare business cash advance companies.

      4. Equipment financing

      Equipment financing is an excellent option for businesses that need to purchase or lease new equipment quickly. This type of loan covers a wide range of items like machinery, vehicles, office technology, and more. The equipment itself serves as collateral for the loan, which often results in more favorable terms, since the lender has a secure form of repayment. Depending on the lender, you might be able to finance up to 100% of the equipment cost.

      Features of equipment financing are as follows:

      • Loan amount: $5,000-$5,000,000
      • Loan repayment term: 1-10 years
      • Interest rate: 7.5% and up
      • Funding time: As soon as same business day
      Lender/funder*Minimum time in businessMinimum credit scoreMinimum annual revenueTime to funds (after approval)
      Balboa Capital1 year620$100KAs soon as same day
      ClickLeaseAny520NoneAs soon as same day

      Compare equipment financing companies.

      5. Invoice factoring

      Invoice factoring allows you to get paid faster for your outstanding invoices. With invoice factoring, the financier will purchase your invoice at a discounted rate, giving you a percentage of the money upfront. Then, after the customer pays the invoice in full to the financier, you receive the rest of the money, minus a fee. Funds from invoice factoring can be available as soon as the same day. Plus, the factoring company handles collecting payment from your customers, freeing up your time and resources for other areas of your business.

      Features of invoice factoring are as follows:

      • Loan amount: Up to 85% of invoice value
      • Loan repayment term: Up to 1 year
      • Factoring fee: As low as 3%
      • Funding time: As soon as same business day
      Lender/funder*Minimum time in businessMinimum credit scoreMinimum annual revenueTime to funds (after approval)
      Raistone Capital1 yearN/A$100KAs soon as next day
      Gillman-Baguley3 monthsN/A$180KAs soon as same day

      Compare invoice factoring companies.

      When to get a fast business loan.

      While speed to funds is one factor to consider when comparing business loan options, it’s important to compare multiple factors when selecting a business loan including the total cost of the loan and the maximum loan amount. In some cases, waiting a few more days or weeks will allow you to work with a lender who can offer more favorable terms.

      Some common reasons to get a fast business loan include:

      • Immediate working capital needs
      • Unexpected business expenses
      • You don’t qualify for a traditional bank or SBA loan

      Fast Small Business Administration (SBA) loan options.

      In some scenarios, the Small Business Administration (SBA) provides expedited loan options that offer both speed and beneficial terms, making them a worthwhile consideration for businesses in need of swift funding.

      SBA Express Loans

      An SBA Express Loan is a variant of the popular SBA 7(a) loan with a faster approval time. This expedited process, often within 36 hours, offers loan amounts up to $350,000.

      Applying for an SBA 7(a) Small Loan with Lendio.

      Lendio offers a convenient SBA loan application process. While it might take 30 to 90 days with your local bank, potential borrowers can complete an application and get a pre-approval within 24 hours, and after providing the required documentation, can get funded with a 7(a) small loan in fewer than 30 days.

      How to get a fast business loan.

      Follow these steps to obtain fast business funding:

      1. Determine your needs – Understand the exact amount you require and the purpose of the loan. Make sure a fast business loan is the right choice for your needs.

      2. Check your credit score – Lenders will consider your personal and business credit scores when determining approval and rates. Ensure your credit is in good standing to increase your chances of approval.

      3. Gather necessary documents – This usually includes business and personal tax returns, bank statements, balance sheets, and a detailed business plan. Having these documents ready can speed up the process significantly.

      4. Compare lenders – Different lenders offer different terms, requirements, and rates. Research and compare multiple lenders to find the one that best fits your needs.

      5. Submit your application – Complete your loan application with your chosen lender. Be thorough and accurate to avoid unnecessary delays.

      Remember, while fast business loans provide quick access to capital, they may come with higher rates and shorter repayment terms. Consider all your options and understand the terms before making a decision.

      Pros and cons of fast business loans.

      Just like any financial product, fast business loans come with their own set of benefits and drawbacks. Understanding these pros and cons can help you make a more informed decision.

      Pros of fast business loans:

      1. Quick access to capital – The most significant advantage of fast business loans is their speed. When your business needs funds immediately, these loans can provide cash within one business day, making them an ideal solution for emergencies.

      2. Simple application process – Fast business loans typically have a straightforward online application process that can be completed within minutes, without the need for extensive paperwork.

      3. Potential for approval with bad credit – Many fast business loan providers are more flexible with credit score requirements, which can be beneficial for businesses with a less-than-stellar credit history.

      Cons of fast business loans

      1. Higher rates – The convenience and speed of fast business loans often come at a cost. The rates can be significantly higher than those of traditional business loans.

      2. Short repayment terms – Fast business loans usually must be repaid relatively quickly, often within a few months to a few years. This could potentially strain your cash flow.

      3. Risk of debt cycle – If used improperly or over-relied upon, businesses may find themselves in a cycle of debt, taking out another loan to pay off the previous one.

      Before applying for a fast business loan, weigh these pros and cons carefully. Consider how the repayment terms and rates will impact your business’s cash flow and growth, and consult with a financial advisor if needed.

      How to compare fast business loans.

      When you’re considering a fast business loan, it’s all about striking the right balance between speed, terms, and cost. Here’s how to navigate the maze and compare multiple options effectively.

      Understand your urgency

      Your first step is assessing the urgency of your financial needs. Do you require the funds within 24 hours, or can you wait a week or two? The urgency will narrow down your options and help you focus on lenders who can meet your timeline.

      Know your numbers

      Financial literacy is non-negotiable in the world of business funding. Calculate exactly how much you need, and more importantly, how much you can afford to repay. Use loan calculators and projections to understand the long-term impact of the loan.

      Read the fine print

      The devil is in the details. While speed is your priority, don’t skim over the terms and conditions. Look for prepayment penalties, additional fees, and any other clauses that could affect your small business negatively.

      Review the repayment terms

      Fast business loans often come with shorter repayment terms. Ensure you can meet the daily, weekly, or monthly repayments without straining your cash flow. If you can’t find a loan with terms that suit your business’s financial rhythm, it may not be the loan for you.

      Evaluate the total cost

      The Annual Percentage Rate (APR) is your benchmark for the total cost of the loan. The lower the APR, the cheaper the loan. But also consider the application fees, processing fees, and any other costs that could push the total cost up.

      Shop around

      Don’t settle for the first offer or even the third. Approach multiple lenders and use the competitive landscape to your advantage. You might find that you’re eligible for lower rates or better terms than you initially thought.

      Secure or unsecured?

      Fast loans can be secured against your assets or unsecured, with no collateral required. While secured loans often have lower rates, unsecured loans are quicker and don’t put your personal or business assets at risk.

      Understand credit score repercussions

      Applying for multiple loans can impact your credit score, so be strategic. If your credit score allows, consider pre-qualification offers that give you a rough idea of what you qualify for without a hard credit check.

      FAQs

      The typical time to receive funds depends on the lender and financing type. Some loans can be funded as quickly as the same day while others may take a few days or weeks. An SBA loan generally takes two to three months.

      Qualifying for a quick business loan can be easier than traditional loans. However, each lender will have their criteria, so it’s important to research and compare multiple options to find the best fit for your business. Maintaining a good credit score and having the necessary documents ready can increase your chances of approval.

      A fast business loan is a type of financing that provides businesses with quick access to cash, often within 24 hours. This type of loan is perfect for situations that require immediate funding like unexpected expenses, immediate working capital needs, or seizing growth opportunities. The approval process for fast business loans is usually streamlined and involves less paperwork as compared to traditional loans. It’s important to note that while the speediness of these loans is a significant advantage, they might come with higher rates and shorter repayment terms. As such, they’re best used for short-term needs or when the potential return outweighs the cost.

      Quickly compare loan offers from multiple lenders.

      Applying is free and won’t impact your credit.

      About the author
      Tanner Cupello

      Tanner Cupello has worked in the small business lending industry for eight years assisting thousands of small business owners to get financing to sustain and grow their businesses. At Lendio he oversees and trains the full team of funding managers on business loan products and a network of over 75 lenders.

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