Want to keep your operations running smoothly when an emergency expense strikes or during a seasonal downturn? Then business loans could help you.
You need fast business loans during those time sensitive situations. These loans are a type of financing that can be financed quickly. They feature a streamlined application process and fast approval and funding. Online or alternative lenders often offer less stringent qualification requirements than those imposed by traditional financial institutions.
However, the selection process can be a bit daunting, with many options to explore.
Don’t worry; We bring you a list of the best fast business loan options that provide fast approval times and fast financing.
Small Business Administration (SBA) loans are known for their long terms and low rates. The United States government also insures them. Repayment periods depend on how you will use the funds. These loans range from 7 years (working capital) to 10 years (equipment acquisition) and 25 years (real estate acquisition).
This type of loan includes an SBA guarantee. In other words, the SBA reimburses lenders for a percentage of the debt in the event of a loan default. This collateral helps reduce the lender’s risk while increasing your chances of getting approved.
Loan amounts can finance expenses such as business equipment, inventory, and working capital and range from $500 to $5.5 million. Interest rates are made up of a base rate with the lender’s additional percentage. The base rate is generally based on the optional fixed rate, LIBOR, or prime rate and changes over time.
On the other hand, this type of loan also has some drawbacks, such as a slightly longer and more rigorous application process than other fast business loan options.
Startup loans are best for those who want to start a business but don’t have capital. Lenders often rate people based on personal credit with a strong credit history of more than 680 and an annual income of at least $30,000. You can select investors based on strategy rather than monetary value.
This type of loan provides enough working capital to cover start-up expenses, including real estate, inventory, payroll, equipment, marketing costs, hiring expenses, and necessary technology. In this way, you can ensure that you will give your best when starting a new business venture.
With a business startup loan, you can separate your business finances from your personal assets. Remember to start a new business as it involves risk. Therefore, you should be very careful about pledging personal wealth, such as money, retirement savings, and home equity.
Income-based business loans can get you financing within 24 hours without having to process a lot of paperwork. You can qualify and approve up to 150% of average monthly income as long as you have been in business for at least 12 months and generate at least $20,000 in bank deposits.
This type of business loan does not require collateral, which makes it more attractive to business owners. Terms range from 4 to 18 months, allowing you to pay off the loan in a shorter period. It also has minimal credit requirements, requiring at least a 550 FICO score. That way, you can acquire the necessary financing despite having personal credit problems.
Unlike the excessive or lengthy amount of information in traditional bank loans, you only need to complete a one-page application to apply for an income-based loan. Other required documentation includes business service statements and bank statements for the last 3 months. After submitting the application and being approved, you will obtain the financing in as little as 24 hours.
Unsecured term loans have low rates, monthly payments and terms of up to 5 years. This type of business loan is suitable for established businesses that need bank loans but want an easier and faster financing process. The loan does not require collateral, and you can start repaying the amount one month after receiving it.
Since you do not need to pledge any vehicles, property, or other assets to obtain the funds as collateral, it can be risky for the lender. That’s why you need a high credit score to qualify for an unsecured term loan. The most significant advantage of obtaining this loan is that you do not risk losing collateral.
This fast business loan is considered the most lucrative option for those who do not have the valuable possessions necessary to offer collateral. You still own your property, car, or other assets if something bad happens.
Business line of credit can be accessed as needed. This business loan is revolving, where you can pay it back repeatedly and access the funds during the draw period. Interest accrues on the portion of the line of credit that is being used. This makes it a great option if you need capital over time.
Borrowing limits generally range from $2,000 to $250,000, while the APR starts at 7%. Although the business line of credit has short repayment terms, often less than a year, funding times are quicker than for traditional options. You can even get approved after a few hours.
By improving your business credit score, this business loan can help. On-time payments can reflect positively on credit scores. You can also get a larger line of credit in the future. If the cost is too much for your credit card but too small to take out a loan, a business line of credit is adequate to cover amounts in between.
For example, truck maintenance can be expensive, and a business line of credit can help you get regular truck maintenance done with quick financing.
Equipment financing loans are ideal for business owners who purchase equipment, such as machinery or vehicles. Since this financing is considered an asset-based loan, the loan is secured by the equipment purchased.
If the loan defaults, the lender has the right to repossess or seize the collateral. This helps recover the outstanding balance of the loan. When it comes to loan amounts, they depend on equipment costs, but can range to more than $1 million and you can pay terms of up to 25 years. In general, the rates range between 8% and 30%.
Since equipment financing allows you to access substantial amounts, you have the best opportunity to purchase expensive machinery parts and improve your overall business operations. You can use the funds on all kinds of equipment, including state-of-the-art office software and an excavator on the job site.
No matter what equipment you buy, it serves as loan collateral. In short, you do not need to offer personal assets, such as real estate, vehicles, boats, or houses. In many cases, this quick business loan requires a credit score of 650 or higher, at least 2 years of business operations, and your business generates at least $50,000 annually.
Business Cash Advance is based on future sales, making it easy for business owners to qualify. Lenders consider sales and income more than credit history. As with the payment, it is based on the agreed percentage of your income coming out of the bank account each day until the balance and interest are paid.
With Business Cash Advance, you don’t have to file a lot of paperwork. It is suitable for business owners with high card transactions. Lenders take percentage of daily income for payments.
Business Cash Advance adjusts to the performance of your business. Plus, you don’t need to change your processing business. You can use the financing as a cash flow injection to buy equipment, hire more workers, or decorate your facility.
Quick business loans are useful for business owners who need cash due to unexpected circumstances or seasonal sales. Each fast business loan option has unique eligibility requirements, where lenders often look at credit scores, income, collateral, and time in business. Your choice generally depends on the needs of your business.
GoKapital offers a variety of business loan programs for all industries. They make the entire business loan process quick and easy, getting approved within 24 hours with no minimum credit score. You can refer to this link to learn more about these business loan options.