Good things take time.Â Patience is a virtue.Â We all know the sayings. But letâs face it, when it comes to making critical business investments—whether itâs new technology/equipment, a new location, or even just a new employee on the payroll—you usually donât have unlimited time to come up with the needed funds. A quick loan or line of credit is often the best bet to take your business to the next level (or simply keep your company afloat).
If youâre reading this article, youâre probably in a hurry, so letâs dive right in. Here is a list of the quickest small business lenders, followed by a list of general tips for fast loan approval.
6 Best Lenders For Quick Business Loans
The following are some of the fastest and most reputable small business lenders. There are a lot of speedy “payday” loans out there, but most of them are dodgy at best (and outright scams at worst) and will end in you paying back way more money than you anticipated. The following lenders are reputable, and while the fees might be higher than what you’d pay with a bank, the financing offered is much faster and easier to qualify for than a bank loan.
We chose these lenders based on their stellar reputation and user feedback, as well as our own experiences reviewing their services.
One term you need to understand before we get started is “time to funding.” This refers to the amount of time from submitting the initial application to when the funds arrive in your account.
Top Quick Business Loans At A Glance
Time To Funding:Â 2â5 days
The Basics:Â OnDeckÂ is one of the few reputable online lenders willing to lend to less-than-qualified candidates: to qualify for a short-term loan ranging from $5,000 to $500,000Â or a line of credit up to $100,000, you’ll only need a credit score of 500, 12 months in business, and $100,000 annual revenue. OnDeck has somewhat higher factor rates than some its competitors in the short-term lending space, but they have a good reputation for transparency, and it might be worth paying the extra cost if you have poor credit and need fast funds.
The Application:Â OnDeck’s application is fast and easy, and they don’t ask for a lot in terms of documents.Â To make the process even faster, have all of this information ready to submit:
- Business Tax ID
- Bank statements for the previous 3 months
- Social Security number of business owner(s)
- Driverâs license number and state of issue
When applying, take advantage of the live chat feature so that the rep can guide you through the application and answer any questions you might have. After you submit your application, a rep will typically reply with an offer within 24 hours, and after you accept the offer, the money will be in your account within one or two days.
Another cool thing about OnDeck for customers who want fast funds? If you have an eligible debit card linked to your business bank account, you can take advantage of OnDeck’s Instant Funding, wherein you can transfer your line of credit funds to your account instantly, rather than waiting the standard 1-2 days for an ACH transfer.
Apply For An OnDeck Loan
2. LoanBuilder: A PayPal Service
Time To Funding: 1â3 days
The Basics: LoanBuilder, a business financing service offered by PayPal,Â can potentially put money in your account in just a day.Â Like OnDeck, LoanBuilder offersÂ short-term loans of $5,000â$500,000. They will lend to applicants withÂ bad creditÂ and newer businesses as well (minimum credit score of 550 and 9 months in business).
LoanBuilder has moderately high rates, but these are competitive with or lower than those of similar lenders. Additionally, this lender does not charge an origination fee, which means no money will be subtracted from the total loan amount. Also, repayments are automatically deducted from your account on a weekly, rather than daily basis (unlike many other short-term lenders). Keep in mind that you will have a maximum of 12 months to finish repaying your loan, and the combination of weekly repayments plus a short repayment term means your loan repayments will be higher than they would be with other types of business financing products.
One great thing about LoanBuilder is that what you see really is what you get. All fees and terms are spelled out before you see the loan and you even have the option to adjust the loan terms to your liking to “build” the perfect loan. LoanBuilder has a tool that lets you tinker around with your prospective loan before applying. For example, if you want longer repayment terms, you can adjust the term and see how that will affect your weekly repayments.
The Application: To apply for a LoanBuilder loan, simply fill out a 5-10 minute online questionnaire. If your business is eligible, you will be able to fill out a complete application. In some cases, the only required documents might be four months of your recent business bank statements.Â LoanBuilder says that signed contracts received before 5 PM will lead to funds being deposited the next day so long as all documentation is in order.
In terms of ease, transparency, and the reputation for speed and quality synonymous with the PayPal name, LoanBuilder is a great choice for small businesses who want fast funding, even those with bad credit.
Apply For A LoanBuilder Loan
Time To Funding:Â 1â2 days
The Basics: FundboxÂ provides invoice financing and revolvingÂ lines of credit up to $100,000. Repayment terms are for 12 or 24 weeks, depending on the product and what works better for your business.
Fundbox has no minimum credit score requirement or time-in-business requirement, making its line of credit product, “Direct Draw,” a good loan for businesses with poor credit or little time in business. Meanwhile, Fundbox’s invoice financing offering, “Fundbox Credit,” is a favorite of companies that have cash flow problems due to outstanding invoices; Fundbox will lend you the full value of the unpaid invoice(s) with a 0.5â0.7% weekly borrowing fee.
The only borrower requirement to qualify for Fundbox financing is that you use compatible accounting or invoicing software for at least 3 months, or a compatible bank account for at least six months.
The Application: To apply, simply make an account, enter some basic information (such as your name, email, and phone number), and hook up your accounting or invoicing software account or your business bank account. Fundbox typically makes a decision within minutes of receiving your application, after which you can start requesting funds immediately should you accept their offer.
Fundbox requires very few fees—you will not have to pay a draw fee or a prepayment penalty. Although Fundbox’s borrowing rates are higher than what you’d get from a bank, they are in line with other online lenders’ fees. Having a revolving line of credit like the kind Fundbox offers is also a good way to ensure you never need to take out another fast business loan, because you’ll always have access to cash on-demand.
All in all, Fundbox is one of the fastest small business loans around. It’s an excellent option for businesses that struggle with cash flow issues, especially less-established businesses that can’t qualify for a bank line of credit.
Apply For A Fundbox Loan
Time To Funding:Â 2â5 days
The Basics: CrediblyÂ offers short-term loans and merchant cash advances with loan amounts of up to $250,000. This lender has relaxed borrower qualifications—to be approved for their business expansion or working capital loan, you only need a credit score of 500, 6 months in business, and revenue of $15,000 per month. For expansion loans, your average daily balance needs to be at least $1,000. As is the case with most business lenders, more qualified applicants will receive better interest rates.
The Application: To prequalify for a Credibly loan, use the easy online application to enter some basic information about yourself and your business. Credibly will then let you know whether you’re eligible and how much money you qualify for. If you’re eligible, a representative will call you and work with you to get the rest of the documentation you need. The docs you might need to supply include:
- Business lease agreement or business mortgage statement
- Picture ID of all business owners
- Most recent business tax return
- Bank statements for the last 3 months
After you send all the documents, it typically takes about a day to receive a finalized quote. Should you accept the offer, it takes about 1-3 days to receive the funds in your account. Note that while Credibly advertises 48-hour funding, that means you will receive the funds within 48 hours from the moment your loan application is approved.
We like Credibly for their transparent terms, easy application, low borrowing prerequisites, and responsive customer service.Â Credibly is one of the few, well, credibleÂ players in the short-term lending space.
Apply For A Credibly Loan
Time To Funding:Â 2â7 days
The Basics: BlueVineÂ offers invoice factoringÂ as well as traditionalÂ lines of credit up to $5 million. Borrower qualifications vary by product. The minimum required personal credit score for a 6-month line of credit is 600. The minimum score for invoice financing is just 530; for this type of financing, your customers’ creditworthiness is a bigger consideration than your own.
The Application: The process to pre-apply for either the invoice financing or line of credit service is fast and simple: simply create an online account and answer some basic questions about yourself and your business. Youâll also need to provide either the most recent three months of bank statements or allow read-only access to your bank account. A BlueVine rep will then call you and walk you through the process and answer any questions.
Initial approval for either service takes about a day. Once you are approved, you can begin drawing from your credit line or selling invoices immediately. Money transfers normally take one to three business days. If youâre selling an invoice from a customer unfamiliar to BlueVine, it will take an additional 24 hours to see the funds in your account, because BlueVine has to assess your customerâs creditworthiness.
Apply For BlueVine Financing
Time To Funding:Â 2â3 days
The Basics: KabbageÂ is one of the quickest channels to get a business line of credit. Kabbage sells lines of credit up to $250,000, with zero required collateral â no blanket lien and no personal guarantee. Kabbage also provides borrowers with a spending card so you can spend funds from your line of credit instantly, without having to wait the typical 2â3 days for an ACH transfer period.
Note that Kabbage is bad-credit friendly and does not have a specific credit score requirement. However, the service not suitable for startups; to qualify, you need 1 year in businessÂ and must have made at least $4,200 for the last 3 months. It’s also important to keep in mind that while Kabbage is super convenient, this convenience isn’t free—fees are on the high side, and you’ll have to pay back your loan in just 6 to 12 monthly payments. Nevertheless, Kabbage a fast and easy way to get a line of credit if you don’t qualify elsewhere.
The Application: When applying for Kabbage financing, you will have to allow read-only access to your business bank accountÂ and any other data channels you use (such as PayPal or QuickBooks). Kabbage uses this information to determine your monthly fee and maximum credit line. Usually, it only takes a few minutes for the system to decide whether to approve or deny your application. Kabbage might request additional information in order to grant you a credit line larger than $150,000.
When you have been approved, you can begin requesting funds immediately. As mentioned, you can alsoÂ request a Kabbage CardÂ free of charge to pay for goods and services right from your credit line.
Apply For A Kabbage Line Of Credit
Which Loan Should I Apply For?
So, now you know of some quality lenders that can put money in your account within days of your application. To determine which loan is right for your business, consider the services they offer (and how well these services meet your needs) and whether you meet the lender’s minimum qualifications, which are as follows:
- OnDeck: Short-term loans up to $500,000 and lines of credit up to $100,000; need 12 months in business, 500 credit score, and $100,000 in annual revenue
- LoanBuilder: Short-term loans up to $500,000; need 9 months in business, 550 credit score, and $42,000 in annual revenue
- Fundbox: Revolving LOC and invoice financing up to $100,000; need to have been using compatible invoice or accounting software for 3+ months, or compatible business bank account for 6+ months.
- Credibly: Short-term loans up to $250,000; need 6 months in business, 500 credit score, and $15,000 in monthly revenue.
- Bluevine: Lines of credit and invoice financing up to $5 million; for invoice financing need 3 months in business, 530 credit score, and $100,000 in annual revenue; for 6-month line of credit need 6 months in business, 600 credit score, and $120,000 in annual revenue.
- Kabbage: Lines of credit up to $250,000; need 12 months in business and monthly revenue of $4,200 for the last three months, or $50,000 annually (no specific credit score requirement).
Note that if you only meet the bare minimum requirements, you may not be eligible to borrow the maximum amount advertised by each lender; your qualifications will determine how much money you can borrow.
The above loans are unsecured (meaning they don’t require you to list any specific business collateral), though borrowers may have to sign aÂ blanket lien and/or a personal guarantee.
Fast Loan Approval Tips
How fast your loan is approved and received depends in large part on you. For example, if you procrastinate in turning in the necessary documents needed to get approved for a loan, or you apply for loans you aren’t qualified for, you will be wasting precious time!
What follows are some general recommendations to ensure a speedy time to funding. This includes pre-application preparedness tips to make your application process quicker, advice on what to include in your application in order to get approved fast, and considerations as to which type of quick loan you should apply for.
1. Check Your Credit Score
First, you want to check your personal credit score so you don’t waste time applying for loans you’re not eligible for. Of course, if you want to position your business to get good rates on a âquickâ loan, youâll want to your credit score to be as high as possible. While improving your credit is not something you can do overnight, before applying for loans, be sure to at least check your credit history to see if there are any major issues. Also, pay off whatever outstanding debts you might have (if you can afford to do so).
To check your credit score before you start applying for fast loans, you can use one or more of these Best Free Credit Score Sites. And whatever you find, don’t worry—there are still plenty quick financing options even if your credit score isn’t high enough to qualify for every loan.
2. Have Your Documents Ready
Having all your business documents ready and in one place will make for a speedier application process. Here are some examples of documentation the lender might ask for:
- Tax returns (personal and business)
- Sellerâs permit
- EIN certificate
- Business license
- Balance sheets
- Bank statements
- Proof of ID
- Proof of address
- Incorporation paperwork
- Copy of business lease
Different lenders may require different and more/fewer documents. Itâs a good idea to find out what paperwork the lender requiresÂ beforeÂ you get pre-approved.
3. Prepare A Proposal
Many lenders require your loan application to include a detailed proposal and/or a business plan. This is often true even of âquickâ loans. A proposal generally includes information such as how much money you need, what you will use the money for, and how you will repay the loan. As with your all your important business documents, the loan application process will be speedier and smoother if you have this information prepared and ready to go before you apply.
This resource from the SBAÂ includes the information you should include in a loan proposal â although you should note that the SBA requires more information than do most âfast loanâ options.
4. BeÂ Thorough On Your Application
The more relevant information you reveal about yourself and your business on yourÂ loan application, the better. The whole process will be faster and less painful if you provide everything upfront. That way, there will be less back and forth between you and the lender as they work with you to get the information you didnât supply initially. You are also more likely to get approved for a loan if you have a more thorough application.
5. Consider All Your Options (Even Unconventional Ones)
Assuming you have all your ducks (and docs) in a row, itâs time to look at your best options in terms of financing. In some cases, you might not even want to get a âloanâ in the traditional sense; a line of credit or cash advance might be a faster or better option for you, depending on your situation. If speed is of the essence, you should consider the following loan products, through which you can potentially get funds as soon as a day or two of applying:
- Short-term installment loan
- Short-term line of credit
- Merchant cash advance
- Equipment financing
- Invoice financing
You also might want to consider the following unconventional financing options:
- Peer-to-peer loans
- Business crowdfunding
- Personal loan
All fast financing options have their own pros and cons, of course. Merchant cash advances, for example, tend to be some of the most expensive forms of capital, though they are usually the fastest. Of the unconventional options, P2P loans and personal loans tend to be the fastest, but you’ll generally need to have good personal credit in order to qualify for these options.
6. Apply For Online-Only Loans
So hereâs the quick-and-dirty about bank loans vs.Â online loans: bank loans are not only much more difficult to qualify for, they also take a lot longer to come through than online loans. If you want your loan fast â potentially even as soon as a day or two â online is the way to go. Interest rates are typically higher than with bank loans, but if you shop around, you might be able to get aÂ low-interest small business loanÂ online, especially if you have good credit.
7. Use A Loan Aggregator
A loan aggregator service lets you apply for multiple online business loans at once. Using a service likeÂ LendioÂ you can fill out a single application with your business information and be pre-approved for multiple loan options. This is one of the quickest way to apply for online loans, as you save the time it takes to apply for multiple loans individually. Loan matchmaking services are also typically free; if you do accept a loan offer, the lender pays a referral fee to the matchmaker. You never have to pay the matchmaker directly.
Compare loans with Lendio
8. Consider An Online/SBA Loan HybridÂ
If youâre looking to borrow from the SBA, you probably know this isnât the fastest form of financing around. And if speed is your top priority, you probably shouldn’t bother applying for an SBA loan, bank loan, or any other type of long-term loan. With that said, the SBA offers high quality, low-interest loans, and if you qualify for one, it might be worth waiting a little extra time for. To make the SBA loan application process faster and easier, you can apply for an online/SBA loan hybrid.
SmartBizÂ is one example of an online service that facilitates SBA-backed loans. Your funds might still take up to a few weeks to come through, but it will be quicker than applying directly through the SBA.
9. Don’t Forget About Your Business Credit Card
Taking out a business loan isn’t your only option if you need fast cash. You can also charge major expenses on your business credit card and pay them off later as you are able. Be sure to check out theÂ Best Business Credit Cards for 2018 to find a good credit card that earns rewards and doesn’t charge an exorbitant amount of interest.
If you need a large sum of liquid cash, you might also consider a credit card cash advance. You need minimal qualifications in order to qualify for such an advance; if you have a business credit card, you will probably be approved for an advance. Once you sign up for your card’s cash advance program, you can typically begin withdrawing cash right away.
The downside to credit card cash advances is that the APR and cash advance fees are usually quite high. Since you’re borrowing against your own credit limit, this can also temporarily lower your credit score by affecting your credit utilization ratio. Nevertheless, credit card advances are a fast and easy business loan alternative available to virtually anyone who has a credit card.
10. Don’t Be Too Hasty
Finally, when getting a fast business loan, itâs important to take your time and read the fine print. In many cases, the super-quick ânext-dayâ loans you find online will have less than ideal terms. Youâll likely have to pay your loan back rapidly at a high rate of interest.
Ideally, of course, you will find a great lender that gives you a fair rate and terms. Check out our Small Business Loan Calculators to calculate your total repayment, financing cost, daily/weekly/monthly payments, APR, and cents on the dollar.
Fast business loans can serve as a lifesaver for businesses that need working capital, have cash flow problems, and other financing issues. Although banks can take weeks to issue business loans (if you can even get approved for one), alternative lenders can put money in your bank account within a couple days. However, the reason that online/alternative lenders are willing to give you money so quickly is that you are paying a premium for speed—meaning, you’ll pay more than you would for a bank loan, and you’ll pay the loan back much quicker than you would other types of financing.
To avoid getting ripped off by a predatory lender or agreeing to a bad loan because you are desperate, be sure to compare multiple loan offers.Â It’s important to do your due diligence to ensure you get the best loan possible, i.e., the one with the lowest fee and repayments you can reasonably afford. Remember that you can pre-apply for multiple loans online without affecting your credit score.
Bear in mind that there are indeed some legitimate, quality lenders (like the ones on this list) that provide quick capital. Whatâs more, you can take certain actions to speed up your loan application process and time to funding. Be sureÂ to organize and present all your business documentation at the start of the application process. And save time by applying for multiple loans at once with a loan matchmaker service like Lendio.
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