Fast Business Loan Options for Small Business Capital

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• FAST BUSINESS LOAN OPTIONS FOR SMALL BUSINESS
  CAPITAL

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Every small business needs capital now and then.
Being it the lifeblood of a small business, its
not only essential for success but also to keep
it from falling behind the competition and
failure.
Awkwardly, for most small businesses, there are
not many options for fast business loans. For
many, banks are the first source to secure
capital. However, getting a bank loan with
favorable terms and lower interest rates might
not be possible especially when you have less
than stellar credit ratings. Securing credit from
a bank takes time, approximately 60 90 days
simply for loan approval. If youre able to
gather all the necessary paperwork for bank
loans, and waited for months to be approved, what
if you could be declined? Even if you get a bank
loan approval, you might have to wait another few
weeks to get the cash in your hand.
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• Alternative Lending for Fast Business Loans

Since there are limited financing options for
small business owners, it doesnt mean youre not
fundable. The alternative lending industry is on
the rise offering a wide variety of business
financing options to struggling business owners
like you to help you get the capital you need to
grow your small business. Alternative lenders are
non-bank lenders who specialize in financing
small and mid-size businesses with non-bankable
financing options within a quick timeframe and at
favorable terms. The small business loan
underwriting criteria is more flexible and
doesnt depend on your credit score solely,
enabling you to secure business capital fast.
Before applying for fast business loans with
alternative lenders, do your homework properly.
The convenience that comes with alternative
lending also carries costs and they can be
expensive, based on the funding option you will
apply.
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Fast Business Loan Options
Short-term Loans
Alternative lenders offer a variety of fast
business loan options with varied turnaround
times to receive funding. Heres an overview of
the most common fast business loan types
Business Lines of Credit
Equipment Financing
Merchant Cash Advance
Invoice Financing
SBA Loans
Asset-Based Loans
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Business Lines of Credit
Short-term Loans
Short-term loans are the most appropriate funding
option for businesses that need quick access to
capital for immediate funding needs, to bridge a
cash flow gap, leverage on a business
opportunity, or to manage the unforeseen
expenses. You can have the cash in as little as
24 hours with a credit score requirement of at
least 640 and 2 years of time in business.
A business line of credit is another suitable
funding option for small businesses. A business
line of credit works similarly to a credit card
where youre approved for a predetermined credit
limit, which you can draw from as and when
required. You only pay for the money youve
withdrawn from your credit line plus the interest.
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If your business needs capital to purchase
equipment, equipment financing is the best loan
option for you. You can use equipment financing
to finance any needed vehicles, furniture,
machinery, and much more. The turnaround time for
your equipment purchase typically takes about 5-7
days. The best thing about equipment financing is
that the equipment itself serves as collateral
for the loan, which in turn gets you more
flexible terms and lower interest rates. If you
default on the loan, the lender can seize the
equipment to and sell it to recoup the loss.
Equipment Financing
Merchant cash advances are another quick funding
option where you receive a lump sum of capital
upfront in exchange for a fixed percentage of
your future credit and debit card sales. Its not
a loan, but an advance on your future
receivables. There are no fixed monthly payments
and youll pay when your business makes money.
This is the most convenient funding option for
seasonal businesses where payments are based on
your business sales. You pay more when you make
more sales and vice versa. A merchant cash
advance is an expensive funding option, but you
are able to obtain the cash within 24 hours. Its
a viable option when used properly and definitely
relieves the hassle of not being able to get a
bank loan.
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Invoice Financing
In Invoice financing, your business sells your
outstanding invoices to invoicing companies in
exchange for capital. The invoicing companies
will then advance you up to 80 to 90 of the
total value from each invoice, providing you fast
funding. After your customers pay the invoices,
the lender transfers the remaining 10 to 20
after deducting a small fee.
SBA Loans
The Small Business Administration (SBA) loans are
the most sought after loan programs for small
business owners with longer repayment terms and
lower interest rates and higher loan amounts. The
SBA itself doesnt lend them money, instead their
network of lenders lend money and SBA guarantees
up to 85 of the loan amount to mitigate the risk
for lenders. However, the SBA loan process is
typically longer (30-45 days) and qualification
criteria are stricter than other loan types.
Asset-Based Loans
Asset-based loans are collateral-based loans
where your existing assets such as commercial
real estate, accounts receivable, purchase
orders, machinery and equipment used as
collateral for the loan.
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Do Alternative Lenders Offer Fast Business Loans?
The answer is yes if you need funding in as
quickly as 2-5 business days. You will get the
approval decision within 24 hours and can have
the capital in your bank account within days. All
you need is to fill an online loan application
form, provide the documentation including your
recent 3 months of business bank statements,
returns, and credit reports to access capital
quickly.
Fast business loans are ideal to increase your
business cash flow, make necessary purchases,
hire new workforce, expand to a new location, buy
supplies, or make payroll.
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