Here’s a summary of the 6 Best Fast Business Loans for Quick Cash in 2024 as detailed in the article by Talon Abernathy, edited by Claudia Rodríguez Hamilton, and updated by Colin Grubb.
1. OnDeck
- Loan Amounts: $5,000 to $250,000
- Average Yearly Revenue Requirements: $100,000
- Minimum Credit Score: 625 FICO
- Minimum Time in Business: 1 year
- Funding Speed: Same-day funding available
- Trustpilot Score: 4.8/5
- BBB Rating: A+
2. National Funding
- Loan Amounts: Up to $500,000
- Average Yearly Revenue Requirements: $250,000
- Minimum Credit Score: 600 FICO
- Minimum Time in Business: 6 months
- Funding Speed: Funding within 24 hours
- Trustpilot Score: 4.8/5
- BBB Rating: A+
3. QuickBridge
- Loan Amounts: $10,000 to $500,000
- Average Yearly Revenue Requirements: $250,000
- Minimum Credit Score: 600 FICO
- Minimum Time in Business: 6 months
- Funding Speed: Quick funding for small to mid-sized businesses
- Trustpilot Score: 4.6/5
- BBB Rating: A+
4. Bluevine
- Loan Amounts: Lines of credit up to $250,000
- Average Yearly Revenue Requirements: $120,000
- Minimum Credit Score: 625 FICO
- Minimum Time in Business: 1 year
- Funding Speed: Fast access to lines of credit
- Trustpilot Score: 4.3/5
- BBB Rating: A+
5. Revenued
- Loan Amounts: $5,000 to $500,000
- Average Yearly Revenue Requirements: $250,000
- Minimum Credit Score: None required
- Minimum Time in Business: 1 year
- Funding Speed: Online platform with quick funding options
- Trustpilot Score: 4.6/5
- BBB Rating: A-
Fast business loans are designed to provide companies with quick access to cash, often within 24 hours of applying. These loans can be crucial in situations where a business needs immediate funds, such as covering unexpected expenses, taking advantage of a time-sensitive opportunity, or managing cash flow during slow periods. However, it’s essential to approach these loans with caution, as they often come with high interest rates and short repayment terms, which can lead to financial strain if not managed properly.
How Fast Business Loans Work
Fast business loans are typically offered by online lenders who specialize in quick approvals and funding. The application process is usually streamlined, with minimal documentation required, allowing businesses to receive funds much faster than with traditional bank loans. Once approved, the money can be deposited into the business’s account within 24 hours, sometimes even on the same day.
Typical Eligibility Requirements
Eligibility for fast business loans varies by lender, but common requirements include:
- Minimum Time in Business: Most lenders require businesses to be operational for at least six months to one year.
- Annual Revenue: Lenders usually have a minimum annual revenue requirement, often ranging from $100,000 to $250,000.
- Credit Score: While some lenders cater to businesses with lower credit scores, a minimum score of 600-625 FICO is typically required.
- Collateral: Some loans may require collateral, though many fast business loans are unsecured.
Affordability of Fast Business Loans
The convenience of fast business loans often comes at a cost. Interest rates are generally higher than those of traditional loans, and repayment terms are shorter, which can result in high monthly payments. It’s important for business owners to carefully consider whether the loan’s cost is justified by the immediate need for cash. Comparing offers from multiple lenders and reading the fine print can help avoid unexpected costs.
Speed of Funding
One of the main advantages of fast business loans is the speed at which funds can be accessed. In many cases, businesses can receive funds within 24 hours of submitting their application. This quick turnaround can be beneficial in emergencies or when a business needs to seize an opportunity quickly.
Conclusion
Fast business loans can be a valuable tool for companies needing quick cash flow, but they come with significant risks. High interest rates and short repayment periods can make these loans expensive and challenging to manage. Business owners should carefully assess their financial situation and consider whether a fast business loan is the best option for their needs. By understanding the workings, requirements, and costs associated with these loans, businesses can make informed decisions that support their financial health.
Fast Business Loans Guide
When your business needs cash quickly, fast business loans can be a lifeline, providing essential funding within a matter of days. This guide covers how fast business loans work, their typical eligibility requirements, and key considerations to help you decide if this option suits your business needs.
What is a Fast Business Loan?
Fast business loans are designed to provide companies with quick financing, often within one to three business days. These loans come in various forms, including lines of credit, equipment financing, and merchant cash advances (MCA). The streamlined application process and quick approval make them accessible to businesses that may not qualify for traditional loans, including those with bad credit or startups.
How Do Fast Business Loans Work?
The application process for a fast business loan typically involves filling out an online form with key details about your business and financials. Some lenders may require a personal guarantee, and they often check the business owner’s personal credit history. However, these loans usually do not contribute to your credit history as they are not reported to major credit bureaus.
Unlike traditional loans, which may take weeks or months to process, fast business loans can be approved and funded in just a few days. The decision process usually takes one to two days, with funds often available the next business day.
Fast Business Loan Requirements
While fast business loans are generally easier to obtain than traditional loans, certain requirements still apply:
- Credit Score: There’s no universal minimum credit score, but many lenders set a baseline, often around 600-700, with better terms available to those with higher scores.
- Time in Business: Lenders typically require businesses to have been operational for at least six months to a year.
- Annual Revenue: A minimum annual revenue is often required, which can range from $50,000 to $250,000 or more.
- Collateral: Some loans, such as equipment financing, may require collateral, which is specified in the loan contract.
Types of Fast Business Loans
Here are some common types of fast business loans:
- Business Line of Credit: Provides access to a predetermined credit limit, similar to a credit card. You only pay interest on the funds you draw, making it a flexible option for managing cash flow.
- Online Business Term Loans: Fixed amounts borrowed from online lenders, repaid in regular installments. These loans often come with a quicker approval process and more competitive rates than traditional banks.
- Equipment Financing: Used to purchase or lease necessary equipment, with the equipment serving as collateral.
- Invoice Financing: Uses unpaid invoices as collateral to secure a loan. It provides quick access to capital but may offer less than the full invoice amount.
- Merchant Cash Advances (MCA): Provides cash in exchange for a percentage of future credit card sales. It’s a quick option but often comes with high fees and frequent repayments.
When to Consider Fast Business Financing
Fast business loans are ideal when your business needs immediate capital, such as:
- Covering Payroll: Helps maintain employee morale and compliance by ensuring timely payments during cash flow shortages.
- Expansion Costs: Funds sudden growth opportunities, such as leasing new space or purchasing additional inventory.
- Purchasing Equipment: Equipment financing allows for the acquisition of necessary tools or machinery without upfront costs.
- Ineligibility for Traditional Loans: Fast business loans are more accessible to businesses with poor credit or limited documentation.
Are Fast Business Loans Affordable?
Fast business loans generally have higher interest rates compared to traditional loans. However, businesses with excellent credit and high annual revenue may secure more favorable terms. If you’re not satisfied with the rates offered, consider other financing options like LLC loans or unsecured business loans.
How to Choose a Fast Business Loan
When selecting a fast business loan provider, consider the following:
- Interest Rates: Although rates are typically high, maintaining a good credit score can help you secure better terms.
- Funding Speed: Most fast business loans fund within one to three days, though larger amounts may take longer.
- Reviews and Reputation: Research online reviews and thoroughly read the loan contract before committing. Be cautious of lenders with poor reputations, similar to payday lenders.
Conclusion
Fast business loans can be an effective solution for businesses needing quick access to funds. By understanding the different types of loans available and carefully considering the terms and requirements, you can make an informed decision that best supports your business’s financial health.
Fast Business Loans FAQs
- How to Get a Startup Business Loan with No Money: Consider SBA microloans or startup lines of credit, often requiring a solid business plan.
- Is It Hard to Get a Business Loan?: It depends on your credit score, time in business, and revenue.
- How Fast Can You Get a Business Loan?: Typically within 24 hours.
- What Is a Good Interest Rate for a Small Business Loan?: Rates vary, but lower is always better, depending on your creditworthiness and lender.
- Can You Get a Fast Business Loan for a Startup?: Yes, though options may be limited and may require higher interest rates or additional documentation.