Small businesses often require influxes of money at short notice. Sometimes they cannot survive 3 to 4 weeks to secure a traditional business loan. As a small business owner, you may wonder how you can secure a business loan in a matter of days or hours. Fortunately, there are many quicker alternatives to traditional business loans. Read on to learn about fast business loan options for your small business.

 

Short Term Loan

When low on funds, a short-term loan provides businesses with a small loan. Similar to a traditional loan, banks offer this loan through an application process. The difference is the amount of the loan is limited, usually to less than $250,000. Additionally, short term loans have more fees. The loan uses a fee structure instead of traditional interest since it is so short term. These loans are useful if you need capital for a sudden expense to expand your business. As long as you can repay the loan, a short-term loan is a great option with a steady income and good credit.

 

Business Credit Cards

If you need to borrow money regularly each month for the business, a business credit card would be the best loan option. Business cards operate just like their personal banking counterparts. However, a business credit cards have a higher limit than personal credit cards. A credit card gives you flexibility to take on debt when you need it. Then, you can pay off the card, so it does not rack up new interest. You can find the best credit cards that offer rewards, such as free travel and discounts. The rewards are an added perk of using business credit cards responsibly.  If you have recurring expenses each month, a business credit card can offer you a line of credit at any time.

 

Financing Equipment

When you need cash for a big equipment purchase, you can finance it to save money upfront. After paying 10% to 20% of the cost upfront, you are provided the piece of equipment and pay the rest over time with interest. For example, if you need to buy a new copier for your company, you can buy the copier and pay it back over a few years. As a result, you can use equipment as you pay for it. On top of that, the lender won’t demand additional collateral besides the loaned equipment. With attractive fast business loan like equipment financing, you can buy business equipment while keeping your liquid capital for day to day operations.

 

Merchant Cash Advance

If your business doesn’t qualify for a business loan, you can receive a merchant cash advance to get fast money. In this quick loan option, a merchant capital provider gives you a loan based on your monthly credit card revenue. They then take a portion of that card revenue a month directly until the loan and interest is paid for. These fast business loans are flexible because they aren’t bank loans. However, with that flexibility comes higher fees and interest rates. For example, you could get a merchant capital provider to give you a $1,000,000 advance with no collateral. However,the interest rate might be as high as 40%. Still, if you really need the cash fast, a merchant cash advance will be much quicker than applying for a traditional bank loan.

 

Peer-To-Peer Loan

Finally, possibly the fastest option for a business loan is a peer-to-peer loan. Private investors offer this type of loan rather than financial institutions. As a result, you can receive funds shortly after signing a deal. However, these loans are not protected by a bank or government. The lender can put whatever fees or conditions they like into the deal. While these arrangements were originally made through personal connections, there are several sites today that can connect your business with peer to peer lenders. For small loans that require flexibility, a peer-to-peer loan might be a fast loan option to consider.

 

The above loan options will ensure your company can get business funds quickly. A short-term loan offers the protection of an ordinary bank loan in a few days. A business credit card can offer you immediate credit whenever you need it. If you are buying expensive equipment, you can finance it with little delay. A merchant credit advance can get you quick loan paid back by your credit card revenue. A peer-to-peer loan offers direct funding deals with the lender themselves. Depending on your needs, these fast business loan options will help you avoid cash-flow problems that can endanger your company.

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January 22nd, 2019 by financetwitter

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