Fast Business Loans: What They Are and How to Get Them

March 15, 2023 EC Funding

Every business becomes stuck in this situation: you’re in a financial rut and have no other means of acquiring cash. You don’t have time to find an investor and have not saved money. So you only have one choice: take a loan.

But most loans take too long to process. This means you won’t receive the money in weeks or even a couple of months.

If you need cash immediately, you may not think there are a lot of options. Fortunately, fast cash loans are available you just need to know where to find them.

Continue reading and learn more about fast business loans and how to sign up.

What are Fast Business Loans?

Fast loans exist because the borrower may need the cash in a matter of days.

These loans are more flexible than traditional loans and are ideal for businesses with little-to-no credit history. Even if the borrower has bad credit, fast loans provide options for those with low personal credit.

Because fast business loans are expedited, you don’t go through a bank.

Fast loans are usually provided by online or small lenders. You complete the application within minutes and receive the money between 24 hours and a few days.

The only catch is, you have to be a business. You’ll be asked questions such as the purpose of the loan. You may also be required to submit documents proving your business, the duration of your business, and your revenue stream.

Keep in mind, daily or weekly repayments may be required. Make sure you have some cash available before signing up. Typically, it is good to have deposits of at least $7,500 monthly.

These loans usually have a maximum allowance, but some loans offer more money than others.

Fast Loan Qualifications

Fast loans sound too good to be true, right? While they’re real, they do come with a catch. You have to qualify for fast business loans.

One of the main restrictions is the amount you’ll receive. Fast loans don’t offer as much money as traditional loans and you’re required to quickly pay off the loan. Because of this reason, lenders need to make sure you’re reliable.

Here are some basic qualifications:

Business duration — lenders require proof your business is active and has been in existence for a certain duration.

Each lender is different, but this duration is over one year. Expect to provide proof of your business duration.

Personal and business credit — all lenders have different credit score requirements.

Expect to share your credit score with your lender. Some lenders allow low credit scores and others allow a certain personal and business credit requirement (usually 500 or 550 at the least).

Business income — the lender will need to know your gross income. Each lender has different requirements, some don’t have a minimum income while others have a minimum (usually around $90,000).

The purpose — during the application process, state the reason why you need fast business loans.

Your bank account information — keep personal and business bank account information on-hand during the application process.

You’re also required to sign a personal agreement stating you’re responsible for paying off the loan.

Types of Fast Loans

As a small business, you have a variety of options when taking fast business loans. Each fast loan is different and you should choose the loan that’s best for you and your business needs.

Through an Online Lender

One of the most common ways to take fast business loans is through an online lender. The application process only takes a few minutes, you can easily upload all of the required documents, and you receive the money as little as the same day.

This type of borrowing is usually higher than other loan types. There are usually borrowing limits and requirements. Check these requirements before starting your application.

Business Line of Credit

If your business has credit, use it to your advantage. You can receive cash by using your business’ line of credit. The amount of cash you receive depends on your credit.

There are some other factors that contribute to how much you receive, which includes:

  • Revenue
  • Capital
  • Ability to hold debt
  • Collateral
  • Business duration
  • Any past bankruptcy

If you have great credit and financial history, this is your best option. You’ll receive a decent amount of money and you only pay interest.

Merchant Cash Advance

Do you have a business credit card? You can use your card’s cash advance amount. You receive your credit card limit in cash. It may not be a large amount of cash, but it helps if your business expenses can’t be purchased through credit.

However, the stakes of a cash advance are high. This option should be a last resort.

401k Business Funding

Depending on your 401k, you can use this program to take a cash loan. You can take up to half of the amount in your 401k. If you’re the administrator, you can receive the cash quickly.

The interest rates are low, you can pay the loan off in several years, and there are very little penalties. There’s only one real downside: you’re taking money out of your retirement savings.

Equipment Financing

Do you only need a loan for equipment? Equipment financing is a great option. You receive the money needed for your equipment in as little as a couple of days.

Since your equipment is collateral, interest rates are usually low. Repayment is as flexible as several years or even to the equipment’s estimated life.

Keep in mind, a down payment may be required. If you take a loan through your bank, it will take longer to receive the funds.

Do You Need a Fast Loan?

Every business endures a bad financial state. Sometimes, you need more money immediately. Don’t fret — fast business loans are here to help. Don’t suffer through low funds or bankruptcy when you can take some fast cash.

But keep in mind, all business loans are different and you should choose the one that fits your needs.

Do you need a fast loan? Look at what we offer.

If you have any questions on how Working Capital can help your cash flow or to learn more, please give us a call at 888-513-9937.