Fast Business Loans: The Best Lenders for Quick Working Capital

Fast Business Loans: The Best Lenders for Quick Working Capital

Fast Business Loans: The Best Lenders for Quick Working Capital

Nowhere is the saying “you need money to make money” more true than in the crowded, competitive, fast-moving world of small business. As you seek to establish and grow your enterprise, access to capital (or the lack thereof) can be one of your biggest hurdles.

How Can I Get Money for My Business Fast?

For small business owners facing expenses that just can’t wait, traditional approaches—loans from banks, for example—can be difficult and ultimately disappointing.

Alternative lenders tend to not only evaluate creditworthiness differently, but they are also able to respond much faster to a loan request than their more traditional counterparts. If you’re looking for a quick business loan to meet a pressing business need or opportunity, an online lender is often able to give you an answer to your loan application today and maybe even fund your loan tomorrow.

However, there is a correlation between access and cost in small business lending every small business owner should be aware of. The interest rate (or the cost of capital) will often be less with a traditional lender like a bank or credit union, but their qualification criteria may be much more strict, and it can take weeks or longer to qualify.You should also expect that the costs of small business financing will likely be higher for the convenience of a quick answer and a fast loan. 

Nevertheless, depending on your business need, the increased costs could be worth the expense if it helps you meet a critical business need or increase the ROI of a current business initiative. Let’s take a closer look at a few business lenders and see what they have to offer by way of fast small business loans.

How Do Fast Business Loans Work?

Alternative lenders typically look at other criteria besides creditworthiness, such as annual revenues and assets. They can make a decision on approval faster, sometimes instantly after you click “apply.” If you’ve set up your business bank account with the lender, the funds will be deposited in as little as one business day, giving you the access you need to cash.

Common Reasons for Needing a Fast Business Loan

So why would you need a fast business loan? If you didn’t anticipate a cash shortage, you might be struggling to pay your bills. A quick loan can get you the cash you need to cover those expenses.

You might also have an opportunity to take advantage of an opportunity to purchase another company and don’t have time to wait, nor cash on hand. That’s another example of where a fast business loan could come in handy.

How to Qualify for a Fast Business Loan

Because alternative lenders don’t always require high credit scores, there may be other ways you can qualify for a fast business loan. 

First, your business may be required to be in business for at least a year or two. 

Typically it must meet minimum annual revenue requirements as well. These lenders will often require the business owner to provide business checking account statements, or a link to a business bank account, to verify revenues.  

The Best Lenders for Fast Business Loans

So what’s the best loan for you? Here are some of the most common types of fast business loans.

Business Cash Advance (MCA)

If you accept credit cards and have a fairly consistent flow of credit card and debit card receipts flowing through your business, a business cash advance or MCA can be a viable option for your business. A cash advance is not a loan, but rather an advance on your credit card sales. You can get a lump sum based on past receipts. Most providers are able to give you an answer to your application the day you apply and can have funds in your account within a day or two after that.

The cost of a cash advance will likely exceed the costs of an unsecured loan from most online lenders. Costs are not typically stated as an interest rate, but rather as a factor rate. 

Credit Cards

Credit cards don’t always seem an obvious choice for people looking for fast business loans, but if used right they can be a quick and easy source of business capital. If you have good personal credit, you may be able to qualify for a business credit card

While credit cards are known for carrying higher interest rates, the average APR for a credit card is 16%, significantly lower than some of the options we’ve mentioned. A number of cards offer introductory 0% interest rates for 9—12 or more months, as well as rewards such as cash back with purchases, frequent flier miles, hotel stays, etc.

The ideal way to use these cards is to pay the full balance every month, or before an intro rate expires. As you do, you’ll keep the credit line available for times when you need access to a quick loan. Pay on time and you can build your business credit scores at the same time. 

Credit cards are also one of the most common financing options for new businesses because most don’t have time in business requirements. 

Invoice Financing

Do you have irregular cash flow because you’re often waiting for your customers to pay you for services or products you’ve provided? Invoice financing (invoice factoring) can be a good option for B2B businesses with long invoice cycles. Invoice financing allows you to get paid immediately rather than waiting for your customers to pay you. 

Equipment Financing

If you need to purchase a piece of equipment, equipment loans are a great solution. The equipment you purchase acts as collateral for the loan amount you borrow, which can reduce the interest you pay. Some of these loans offer approval in a few days or a week or so. 

SBA 7(a) Express Loan

If your credit is solid, and you can wait at least a few weeks for the loan, you may consider a SBA 7(a) Express loan. These loans, made by financial institutions and guaranteed by the U.S. Small Business Administration, offer up to $500,000. The best thing about an SBA loan is that it will offer some of the lowest interest rates for which your business can qualify.

SBA loans in general are not known as fast business loans. The application process requires significant paperwork, and approval requires acceptable credit. But of all the SBA loans, SBA Express loans are designed to be the fastest one and some lenders may be able to fund in around a month or less. A personal guarantee is required.

Online Loans

Online business financing can come in the form of a business line of credit or a term loan. While traditional banks often have fairly high approval standards, some online lenders may have more flexible approval standards. Many of these lenders have fairly simple online applications. They are often short-term business loans and repayment terms often range from a few months to two years. 

Family or Friends

No one likes doing this: it’s hard and feels embarrassing, with the potential for injured relationships down the road. But loans from friends or family remain an incredibly popular way for many businesses (of all sizes) to find capital. If you have someone you particularly trust, and who in turn has faith in you and in your small business, receiving this type of loan may be worth exploring. 

What Are Quick Business Loan Options For Bad Credit?

If you have bad credit it can be more challenging to find a loan, but there are still options for a business borrower with less-than-perfect credit history. Specifically, merchant cash advances and business cash advances, as well as invoice financing, often have fairly lenient minimum credit score requirements.

In the case of merchant cash advances, revenues are the primary driver of approval, and in the case of invoice financing it’s the credit of the company that owes the invoice that’s most important. 

Nav’s Verdict: Fast Business Loans

With so many types of business loan programs to choose from, it can be difficult to choose the right funding option. In general, fast funding comes with higher interest rates or fees. You’ll want to choose carefully to make sure the business funding makes sense. 

FAQs about Fast Business Loans

This article was originally written on June 15, 2020 and updated on February 25, 2023.

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11 responses to “Fast Business Loans: The Best Lenders for Quick Working Capital

  1. Very nice article, exactly what I needed. Very useful post I really appreciate thanks for sharing such a nice post. Thanks

  2. Good day guys I need start up grant am in business of taxi industries and my wish is to grow my business cos i have my association certificate I can’t due to luck of money to start

  3. I’ve always wanted to start a new business , I have a few options in mind but I want to set and take with family members to see what they think about this or that . In some instances I did bring it to there attention , some said go for it , and by me having a cleaning Service business , they fill i would be good at starting a new business . Starting a new business will help the economy and create job for people who are looking to work . And as big as my family is, they’re all in line waiting to see what I come up with . Can I apply for a startup business grants?

  4. Hi Good morning this is Arthur. I have a 710 Credit score but just a $300.00 credit limit. Can’t get a business loan so I need a personal loan can you help me.