Fast Business Loans: Options For Quick Cash

1. Business Term Loan

You can obtain as much as $2,000,000 with a business term loan, with interest rates as low as 6%, depending on your company financials and credit history. Compared to other options, like business credit cards, your APR could be substantially lower.

This type of financing can be used for business needs as varied as remodeling your office, hiring seasonal employees, or updating your fleet.

The repayment term usually falls somewhere between 1 and 5 years. And with the fixed interest rate or fixed flat fee, you can easily forecast your payments and know ahead of time exactly how much you can afford to borrow.

Plus, these are great business loans for quick approval times and short funding times. 

Features of a business term loan:

• Loan amount: $5,000 to $2 million
• Loan term: 1 to 5 years
• Interest rate: 6% and up
• Funding time: As fast as 24 hours

Finally, many business term loans come with an easy online application process. Unlike SBA loans, which require loads of paperwork and months of processing time, an online business term loan application can take as little as 15 minutes.

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 anytime, and you only pay interest on the amount that 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:

• Loan amount: Up to $250,000
• Loan term: 6-24 months
• Funding Time: Same day

3. Cash Advance

A cash advance isn’t a loan; instead, it’s a cash advance based on future sales. This makes it easier to qualify, 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 out of your bank account each day until your balance (plus interest) is repaid.

This option is one of the easiest forms of financing available. You can borrow up to $200,000, with repayment terms lasting about 2 years. As with most expedited financing, the cost is higher than average. In fact, don’t be surprised if the interest rates start around 18%.

You won’t need to submit as much paperwork as with other types of loans (just the past 6 months of receivables or bank statements), and there might not even be a pull on your credit.

Cash advances are designed for businesses with high card transactions. The financing company then takes a percentage of daily income (as much as 20%) to go towards your payments. So it can really cause a cash flow crunch compared to business loans with fast funding times and fixed repayment schedules you can rely on.

4. Equipment Financing

With amounts up to $5,000,000, equipment financing definitely bucks a trend among expedited forms of financing. Most fast loans have lower amounts, allowing for faster approval and repayment. But equipment financing provides access to substantial amounts, making it possible to purchase some of the most expensive pieces of machinery on the market. 

You can expect interest rates to start around 7.5%, with repayment terms of 1 to 5 years. The money can be used for all kinds of equipment, from an excavator for your worksite to state-of-the-art software for your office. Whatever equipment you decide to purchase will then serve as the collateral for the loan, meaning you won’t need to offer up personal property such as a home, boat, vehicle, or real estate.

To qualify for equipment financing, you’ll need a credit score at or above 650. Also, your business will need to bring in at least $50,000 a year and have been established for at least two years.

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 up front. Then, after the customer pays the invoice in full to the financier, you receive the rest of the money minus a fee. Fund from invoice factoring can be available as soon as the same day.

FAQs