Quick Business Loans

There are plenty of companies willing to lend businesses money quickly but you need to do your research to avoid hefty fees and punitive terms.

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Small businesses can be hit with all manner of unexpected events. Some good (such as a sudden influx of orders, requiring more staff and materials to deliver) and some not so good (like outstanding invoices, or a drop in customer demand, putting pressure on cash flow). 

In both instances, a quick business loan can help owners cover the cost. 

Types of Quick Business Loans

Fast business loans come in a number of formats. Certain loans are repaid in instalments, others are discounted from revenue. These are the five most common forms of quick business loan:

Secured Loans

Secured business loans are traditional instalment loans, backed by collateral. Collateral is anything you stake the loan with, typically a valuable asset, like a vehicle or equipment. In the event that you don’t repay the loan on time, the lender can repossess your collateral to cover the loss.

Though this poses more risk to you as a borrower, it reduces the risk for the lender. This, in turn, can increase the amount of the loan, lower the interest, and give you faster access to capital.

Bridging Loans

For businesses that want a streamlined version of a traditional instalment loan, there are bridging loans. Commercial bridging loans are designed to quickly provide businesses with a cash injection; they “bridge” the financial gap in acquiring new clients, purchasing new equipment, and so on. Because bridge loans are made for immediate financial needs, they have a very trimmed down and speedy application process.

Merchant Advance Financing

If your business makes its revenue through debit/credit card transactions, then merchant advance financing is a fast business loan built for your business model. Rather than having to repay the loan in instalments, the lender will automatically take a percentage of your sales, until the loan has been repaid. This protects you from taking out a loan you can’t afford to repay.

Invoice Financing

Invoice financing is another quick business loan built for a specific business model. Companies that charge clients/customers through invoices can sell their unpaid invoices to lenders at a discounted price.

The lender will then contact your client/customer and receive payment from them when the invoice is due. This allows you to access your outstanding revenue when you need it and free up your accounting team, as the lender will handle receivables for you.

Asset Financing

Asset financing involves any sort of payment scheme that allows you to use a piece of equipment without having to buy it up front, like renting, leasing, or paying in instalments — a great alternative for companies who need a fast business loan to buy new, or upgraded, machinery and production tools.b

Benefits

Receive Funds In Under 24 Hours

Most fast business loans promise cash within 24 hours. This makes them an excellent solution for businesses with emergency expenses or that need to make a purchase to close a deal.

Simple Approval Process

Since quick business loans are created with speed in mind, they have a much simpler approval process than traditional loans. The requirements for approval are also more relaxed; there’s less paperwork required and shorter waiting times between application and approval. Many of these lenders use automated approval systems, so you could know if you qualify for a fast business loan within minutes.

You Can Borrow With Bad Credit

For those with poor credit, quick business loans tend to have less strict credit approval requirements, which makes them a viable alternative for those with short credit history.

Eligibility Requirements

Every lender will have slightly different requirements, though these are some of the basic requirements you can expect when applying for quick business loans:

  • Age Of Business. Most businesses will need to be at least twelve months old.
  • Monthly Turnover. Your business will need to meet a minimum monthly profit, but depending on the provider this could be as low as £1,500 or as high as £7,000.
  • Collateral. Collateral may sometimes be required, as it reduces the risk to short-term lenders.
  • Owner’s Credit Score. Though business credit score requirements will be more flexible in short-term lending, some lenders will require that the owner is in good standing.

FAQs

Secured loans, merchant advance financing, and invoice financing are some of the easiest loans for businesses to get. They’re all short-term and have relaxed requirements thanks to collateral being at stake.
You can get some quick business loans in under 24 hours.
A quick funding loan is a loan designed to provide you with funding fast. This includes a short approval process and a quick transfer of funds.
Fast business loans are an excellent option for businesses with bad credit, as are loans that require collateral. Look for merchant advance financing, invoice financing, and secured loan options.
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