Business Loans

Fast Business Loans: Options For Quick Cash

Aug 12, 2022 • 7 min read
Small business owner securing capital for their business
Table of Contents

      There are many different types of financing options for small business owners to explore. However, depending on the type of loan or other financing, the amount of time it takes to process the application and receive the funds can greatly vary. 

      Business owners who need fast business loans and other types of financing should focus on the best options for those time-sensitive needs.

      Here are 4 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 is the best option for your company.

      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. Short-term Loan

      These loans are like smaller, more nimble versions of a business term loan. They can be used for all kinds of business-related needs and provide up to $500,000 to borrowers. The terms usually fall between 1 and 3 years, with interest rates beginning around 8%. These fast small business loans are usually funded within 3 to 7 business days, especially if you know how to apply.

      Qualifying for a short-term loan isn’t too difficult. In most cases, if you’ve been in business for more than a couple of years and have a solid credit score, you may be a prime candidate. Just know that you may be required to secure the loan with collateral.

      Short-term loanBusiness term loan
      Loan amount: up to $5,000
      Repayment term: up to 3 years
      Interest rate: starting at 8%
      Funding time: several days
      Loan amount: up to $2 million
      Repayment term: up to 5 years
      Interest rate: starting at 6%
      Funding time: as fast as 24 hours

      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.

      FAQs

      How hard is it to get a fast business loan?

      How hard it is to get a fast business loan depends on the type of small business loans you apply for. Each variety comes with different eligibility requirements. For a fast business term loan, lenders typically review your credit score, time in business, collateral, and revenue. You can typically provide either bank statements or a P&L statement to demonstrate your revenue numbers. 

      What are alternatives to a fast business loan?

      Here are three main alternatives to a fast business loan:

      Business line of credit: This gives you access to a credit line that you draw on only when you need the funds. Funding times usually average one to two weeks. 
      Cash Advance: Get a lump sum of cash based on your future sales. The financing company gets paid each day from a percentage of your daily income.

      Funding times are fast, but this option can cause cash flow issues and come with costly fees.

      Equipment financing: This is a fixed term loan that can be funded in as little as 24 hours. The equipment is used as collateral and you can potentially borrow up to $5 million to cover your business needs. 

      What is the typical time to receive funds?

      The typical time to receive funds depends on the lender and financing type. Online business term loans and equipment financing are usually the fastest options. But you can also get financing through a business line of credit or short-term loan in a few weeks or less.

      The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything. The information provided in this post is not intended to constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter.
      About the author
      Lauren Ward

      Lauren Ward is a personal finance and tech writer with a passion to help consumers make smart financial decisions. Her work has appeared in a variety of publications, including Time and MSN. When she's not writing, she loves gardening and playing board games with her family.

      Share Article:

      Business insights right to your inbox

      Subscribe to our weekly newsletter for industry news and business strategies and tips

      Subscribe to the newsletter

      Subscribe to our weekly newsletter for industry news and business strategies and tips.