Quick and Easy Small Business Loans
Most small businesses thrive on borrowed capital. Owners of these businesses depend on loans to start and hopefully grow their businesses. The only problem is – there’s a lot of uncertainties as to whether or not your business or you are good enough to qualify.
However, depending on the nature of your business, your credit profile and that of the business, the time you’ve been operational, availability of collateral, and the lender in question, you can qualify for a loan.
The bank has been serving as the main financer for businesses for the longest. However, its strict approval criteria have made it difficult for small businesses to benefit.
In this article, we’ll explore some quick and easy small business loans that most businesses can qualify for. But, first here are the best lenders in the market based on interest rates, credit requirements, approval time, and possible loan limit.
- Rep APR
- Repayment term
- Minimum credit score
OnDeck
- 9.00 - 99.00%
- 12 months
- 600
Credibility Capital
- 19.99 - 24.99%
- None
- 650
Fundbox
- 10.10 - 79.80%
- 12 or 24 weeks
- 600
- APR range
- Fees
- Terms
- Amounth
- Unemployment protection
Bank 1
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 2
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 3
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Table of Contents
Can my small business qualify for a quick loan?
The worry as to whether or not your business is a catch, and if lenders will view it the same way, is normal. And more especially if you’re just starting out. Most borrowers caught in this abyss of uncertainty are ones with average to poor credit profiles.
Similarly, those with hardly any asset to offer as collateral also get caught up in this confusion.
However, please note that each lender weighs these factors differently. And, while banks remain the most viable option despite their strict lending criteria, there are still other incredible lenders you could try out. Like the ones tabled above.
Once you get a full grip of and understand your business potential, and your available loan options, you’ll notice you have multiple lender options offering different loan amounts at excellent interest rates and flexible loan terms.
When you exist in the small business world where the world moves rather fast, there’s a need for a credible fund source. Especially when an opportunity that could triple your revenues is on the horizon.
So, yes, your small business can qualify for a quick loan. It all depends on where you seek it, and the type of lenders you choose to work with.
Banks, for instance, have incredible loan products for small businesses. However, their waiting time is long; it’s almost impossible to get a loan in under 24 hours. Plus, you’ll get past the annual revenue requirements, tax liens, and the duration in business requirements.
However, we still cannot rule out banks.
You don’t just need a source of funding; you need the right source of funding.
Requirements to qualify
Different quick and easy business loan lenders have different criteria for classifying potential borrowers. First off, you must be aged 18 years and above to be eligible. You should also be a legal resident of the United States at the time of application.
Here’s a summary of other requirements;
- Credit profile – a credit score of 600 and above is desirable for most lenders. This will earn you lower interest rates, higher loan limits, and flexible loan terms. However, other lenders like Kabbage accept scores as low as 550. But, that comes at a cost, and you’ll part with higher interest rates and ‘not-so-flexible’ interest rates.
- Annual sales – chosen lenders like banks require that your business records an annual sale of $100,000. However, there are other multiple lenders like the ones listed above willing to overlook this.
- Time of operation – most lenders require that your business must have been operational for at least 6 months at the time of application.
- Loan use – there’s no specific use for the funds. You can use it to pay salaries, acquire equipment, pay rent, or any other business use.
Once you have these in order, start sourcing for a potential lender. Prioritize ones offering the lowest rates, and not just their readiness to offer a loan. Also consider a lender’s loan limit, repayment terms, and loan processing time.
Ensure you go through each lender’s policies carefully so you don’t miss out on anything. If they conform with your financial goals, submit an official application, whether physically or online, depending on the lender’s preference.
The lender will require such basic details as your name, residential address, business address, social security number, and other sources of income if any.
Benefits of quick and easy small business loans
The following are some of the benefits you’re set to enjoy with quick and easy small business loans;
- Increased growth rate – every entrepreneur wants their business to grow. It’s a noble course, but one that requires a significant investment of funds. With quick and easy small business loans, you can easily and conveniently inject funds into your business without feeling the pinch. The funds can be used for expansion, to start a new product line, to market the business, or any activity that can catalyze growth.
- Equipment purchase – those in the line of business that revolves around the use of one, two, or a couple of equipment that are actively involved in production and distribution understand that they cannot afford these machines breaking down. As such, you want to invest in buying better equipment and maintaining the existing ones. Quick business loans will come in handy, especially when time is of the essence
- Bridging cash flow gaps – cash gaps are normal in most businesses. However, such could have you missing out on lots of business opportunities. Easy business loans will help you bridge these seasonal cash gaps so production, distribution, and all the other business units can run smoothly.
- Investing in real estate projects – renovations projects are common in businesses. From time to time you’ll have to fix that roof leakage, that leaking sink, or that wall that needs painting. Some of these are unforeseen, yet they need quick fixing once noticed. And, that’s where quick and easy small business loans come in.
- Faster method of financing – most quick business loans get approved within 24 hours. You can apply for financing and get approved at the comfort of your couch. With just your internet-enabled device, you can get financing right where you are.
Types of fast personal loans
Finding a suitable lender is essential, but finding the right loan product, one that will best serve your business is also crucial. The following are some of the quickest and easiest small business loans you’ll find in the market today;
- Merchant cash advances – lenders of this loan type give borrowers cash in a lump sum for a part of their future sales. This is one of the easiest forms of financing for businesses, especially ones whose owners have poor credit profiles. It’s also best for businesses getting their income mostly from debit and credit card sales.
- Invoice financing – if invoices are the main income source, then you’ve probably had some bad experience with the same in the past. The most common one is delayed payments. Invoice financing solves this problem by letting you receive funds for your outstanding invoices instantly. Invoice financing lenders can get you up to 85% of the value of your invoice fast. Once the invoice is cleared, the lender deducts the amount owed plus charges, then wires the remainder to the business.
- Equipment financing purchasing equipment in cash is a smart and cheap move. However, many small businesses just can’t stretch their financial muscles that much, especially if large sums are involved. In such circumstances, equipment financing will cut it. this type of funding lets you acquire the desired equipment to run your business fast.
How much can you borrow?
You can borrow up to $5 million with quick and easy small business loans. However, how much you can borrow depends on several factors.
First off, the lender in question will determine how much you can borrow. Our chosen lenders above, for instance, work within the $5 million range. OnDeck, for instance, is known for large business loans. However, they’re best for established businesses given the stringent application requirements.
Your credit profile also plays a huge role in how much you can borrow. While some lenders may not be keen on this, others are. And, most have capped their credit score at 600.
Your business’ annual sales volume may also determine what your borrowing limit will be. Lenders like OnDeck, for instance, have set theirs to $100,000 annual sales to borrow any amount with them.
Having a good credit score will have you paying lower interests and flexible repayment terms.
Loans for a business that needs cash fast as possible
Does your business need quick cash for repairs? An urgent order? Quick debt consolidation, maybe? Plant repair? Equipment purchase?
All these are normal situations and in a business. And, the common thing about all of them is the urgent need for faster funding.
The good news is – there are quick and easy small business loan lenders willing to lend a helping hand.
Fundbox, for instance, has quick small business loans tailored to help businesses meet their emergency cash needs. For instance, you can explore their line of credit to enjoy up to $100,000.
But first, your revenues shouldn’t be anywhere below $50,000.
Their faster lending is what makes them stand out. You’ll receive your funds 24 hours after approval.
Your business must have also been existing for the previous three months.
Instant Business Loans
Instant business loans are time-bound. You apply for a quick business loan and get an instant decision. Since time is of the essence, most lenders will approve your loan within 24 hours.
Such loans will help you sort out emergency business expenses that pop up when you least expect them. As such, you need reliable lenders who can bail you out.
Most instant business loans are offered by online lenders. These approve their loans in 24 hours or less. The loans also come with low interest rates and more flexible repayment terms.
With these, your business will hardly find itself in a funds shortfall. You’ll seal off most financial gaps so your business runs smoothly.
When applying, most lenders will require such basic details as your name and address. You’ll also need to state the type of business you do, the purpose of the funds, and your annual gross income.
You’ll then be prompted to review the lender policies and accept them. At this stage, other lenders will allow you to negotiate favorable loan terms.
Once approved, the lender then wires the funds into your business account where you can proceed to withdraw.
How same-day business loans work?
Same-day business loans, as the name suggests, allows you access to your funds within 24 hours of approval. They are then deposited directly to your business account or any other preferred account where you can access them immediately.
However, the funds are not immune to such technical issues as bank delays. Fundbox is one of the notable same-day business loan lenders. BlueVine is an excellent shot, too.
You can use the funds to repair that crucial equipment that just broke down, adds extra inventory.
However, same-day come with higher interest rates like those of traditional loans from banks.
Frequently Asked Questions (FAQ)
The five lenders have some of the best quick and easy small business loans with favorable terms and lower rates. Try them out.
A credit score above 600 will earn you different lenders’ approval. Kabbage even has its lowest score set at 550.
Anybody with a good credit score, existing business with good annual returns can apply for quick business loans
Most lenders look at the business annual revenue to approve loans. Getting a business loan without such can therefore be difficult. However, other lenders can reconsider this if you have collateral.
Most lenders are skeptical about funding new businesses for the fear that they may fail. Therefore, borrowers can explore other options like donations from family and friends.
