Fast Business Loans: Top 5 Quick Loan Options to Consider
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In business, there will be times when cash flow stiffens or even gets cut off entirely. This puts you at great risk. At these times you need help and a quick loan can be that quick fix your business needs to stabilize without getting a personal loan. A fast loan is perhaps the easiest and quickest type of loans to access and help you get out of a financial ditch. You just need to know what type to apply for and how to go about it.
This article provides detailed information about fast loans, including the right types of loan advance for your business, the qualification requirements, as well as how to effectively apply for quick loans, and other available loan options to consider.
The Benefits of Quick Loans for your Business
Whether you feel it’s time to scale up or are simply going through a rough patch, a quick loan can be very handy. The speed and relative ease of accessing a quick cash loan make them one of the most popular financing tools for businesses. Receive your full loan amount as fast as the next business day. Loan amounts range from large amounts to small. You may need money to make repairs or pay staff to cash for infrastructure and acquire large equipment.
Easy access to funds
The biggest and most obvious advantage of quick loans is that it is easy to get. Compared to traditional loans where the application process can drag on and you may still get a fat, ugly “NO” from the credit officials.
Also, you can apply for a quick cash loan without leaving your house. You can start and finish the process online and the loan can be disbursed as soon as 24 hours after application. Of course, you may be concerned about the security of the financial information that you give out.
Reputable lending platforms are aware of customers privacy policies and are fully compliant. Accredited, member FDIC online lenders belong to a credit union. Also, they are closely watched by the Consumer Financial Protection Bureau, the department of financial protection, and credit bureaus. So, they will not put their business at the risk of facing the penalties of credit bureaus by not protecting your personal and financial information.
To avert the heavy fines imposed on a credit union and member FDIC lenders, big players are investing heavily in financial protection and innovation. With this, they can fight hackers and prevent the compromise of their customers databases.
Not Collateral Intensive
Quick loans don’t require heavy collateral to get loan approval. So, you don’t need to own property before you can get one. But hold on a moment. Are collaterals still a big deal in today’s world?
We guess not.
Furthermore, getting the required guidance for a credit application is easy. Credit companies usually have customer service channels that are open 24/7. That’s way more than a traditional bank would pull off. So, you can either use their website live chat, call a phone or shoot an email at almost any time. The help you need will be provided in a matter of minutes.
Business Expansion Financing
A smart business person takes advantage of opportunities in the lending market. Sometimes, however, a business may not have the financial strength to adequately buy into growth opportunities. Securing a quick cash loan can help you expand your business capacity for production. You can expand or renovate infrastructure to meet the needs of your growing customers base.
If you apply online for quick money to expand operations, you need to be certain that the expansion will generate profit. As collateral, online lenders may require that you use company assets or the newly purchased asset (in the case of tangible asset acquisition).
Building Credit for the Future
If you have plans for major business expansion or scale-up that would require large-scale external financing, you need a good credit record. Having never taken a loan before may sound like the best kind of credit history but it can not help lenders decide what attitude you may assume to repay the loan.
So, you can take loans and pay them back in due time to build up a business credit history that shows how you can repay the loan. A business that has a history of paying back loans on time will have a better chance at securing bigger loans than those that don’t.
A perk of using quick loans to build a strong credit history is that you get to test the waters with different lenders, building financial relationships with those you find easy to work with. Getting your credit history in order can be of great help when it is time for you to take the leap. Then, you are confident of the best online lenders to choose from.
Inventory and Equipment Purchase
Equipment can be very expensive and businesses can either lease or buy them. However, a cost-benefit analysis can determine whether it’s better to buy rather than lease equipment. If it is, then voila! You can source a loan to buy one of your own.
You can take out quick funds to purchase equipment and spread payment over a year or more. The equipment itself is usually the collateral for an equipment loan. The period it takes to repay the loan and monthly payments are determined by the profitability and estimated lifespan of the equipment being financed.
Running out of inventory means that you have made sales but it does not indicate that the business is turning enough profit or, in the worst case, enough revenue to restock inventories. A quick loan can help fix restocking issues while you figure out ways to turn your venture into a profitable one.
Quick loans for inventory have shorter repayment periods based on the belief that inventories are meant to be sold sooner or later. During certain times of the year, customers come in for seasonal goods, like toys in the Christmas holidays and costumes on Halloweens, creditors often expect inventory loan repayment at the end of such sales season.
Hiring Staff and Payroll
Having an innovative idea doesn’t necessarily mean that you as a business owner can execute it on your own. Sometimes you need to bring in an expert, someone with the technical know-how to help bring your ideas to reality. These experts need to be paid and your small business may not be able to finance such recruitment. At least not immediately.
So, money from quick loans can help you immensely. You can take a fast cash advance to pay contract staff to help move your business forward. This also applies to stale members of your team. You can stay on top of your payroll with one of the best quick loans at your disposal.
Supplement Working Capital
Daily business operations require money. A small business, especially a new one may find it advantageous to take out small quick loans to cater for daily operations costs. Such a business can use quick loans until the business is profitable enough to deal with its daily operations without external help.
Lenders consider quick loans for working capital as significantly risky. This is because its use depends solely on the management skills of the borrower. However, a good credit record can help to increase the chances of favorable considerations.
Emergencies and Repairs
The unpredictable nature of emergencies sees to it that people are inadequately prepared to handle them. Business emergencies can happen due to internal or external factors. So, a business can have solid contingency plans for emergencies caused by internal factors but has little control over external factors like government policies and inflation.
To cope with emergencies that threaten the financial stability or continuity of your business, you can turn to quick loans. They are easy and fast, perfect for emergency response. They are like 911 for business financial emergencies.
Top 5 Best Quick Loans To Creatively Consider
Quick loans are flexible. They are tailored to specific needs. There are different types of quick loans and each has unique qualities that make them most suitable for the intended purpose.
Here are some of the best quick loans that you could find useful.
Personal Loans
Personal loans are originally built to help meet your personal needs. But for small business entrepreneurs, personal and business needs are almost inextricable. Being a principal employee of your establishment, your personal needs often interfere with business.
So, seeking out quick personal loans to keep you and your business afloat is nowhere near a bad idea. You can loan up to $100,000 in personal loans, depending on your FICO credit score. And you may have a year or more to pay back the loan in installments.
Payday Loans
In the early stages, business owners may have regular jobs. Salaries from a regular job can help keep your business breathing until you’re sure that it satisfies enough market needs to go all in. Several successful entrepreneurs have followed this route.
However, while waiting for your next paycheck, your business could run into some pressing needs. It could be so urgent that waiting for your paycheck to arrive can cause a catastrophic downslide. In a positive light, you may be jumping into a time-sensitive opportunity and need the cash urgently.
Payday loans are the best option in this scenario. Though, payday loans are typically smaller than other loan types. This is because they are usually needed to meet small emergency needs
You can get about $500 on payday loans but it sidesteps the dreaded credit checks. So, with bad credit scores or no credit at all you can still qualify for a payday loan. You can apply for a payday loan online and get it in less than 24 hours.
Short-Term Loans
This type of loan is pretty straightforward. You get a lump sum and pay it back with interest within a short timeframe. New businesses with no extensive credit records may find it easier to get short-term loans than the other types.
These loans are best used for funding unexpected expenses in strong hopes that an incoming revenue stream would be used for repayment. They are also useful for exploiting quick investment opportunities. You can secure a short-term loan to fill an unexpected surge in market demand for your business. A customized T-shirt brand, for instance, may have an unusual surge in demand but not enough money to meet this demand. This loan is a good solution. The owner can access a quick loan to fill the demands and lock in some profits after repayment.
You can close $2,500 to $250,000 in quick short-term loans. Reliable lenders, like Upwise Capital, can get the cash to you within 48 hours for interest rate as low as 10% with chances to qualify for an early prepayment discount.
Merchant Cash Advance (MCA)
A merchant cash advance is not really a loan. It essentially entails selling future revenue for cash which you repay through credit card transactions that are paid by customers into your business bank account. The remittance of your credit card payment could be daily or weekly. Therefore, the repayment period is always short.
MCAs are unsecured loans. Unlike a secured loan, no collateral is required to take unsecured loans. It is also fast with little paperwork or processing required.
Unlike other loan types, merchant cash advances are given based on the health of your business and a prediction of future revenue.
Most times, merchant cash advances have high-interest rates. So, seek this type of quick loan with caution.
On the brighter side, however, the repayment plan is flexible and can be adjusted to fit your business revenue at any point in the loan term.
Business Line of Credit
A business line of credit is a credit card for your business. Just as a credit card allows you to fix personal needs in a swipe, you can use your business line of credit to meet your business needs. You can purchase equipment, pay staff, or fund daily operations. And, most of all, they are unsecured loans as well.
However, you can only spend up to the card limit set by the lender. And the interest rate applies only on the loan amount you take out and not the entire credit limit. So what you spend is what determines how much you have to pay back.
One advantage of a business line of credit is that you don’t have to apply for a new loan every time a new expense comes up. There are revolving business lines of credit options that top up each time you pay back funds you take out. This saves you time and energy for reapplications.
Basically, business lines of credit are within the limit range of $1,000 to $250,000.
Which loan best fits your business?
Business owners take out quick loans to keep their company going in difficult times or for expansion. Either way, the best quick loans are intended to help businesses improve profitability.
In today’s world, access to quick loans is only a few taps and half a dozen questions away. However, because a loan is easy to get doesn’t mean it’s right for you. Taking the wrong type of loan may result in repayment default or sink you deeper into financial difficulties.
No worries, though, because we have some tips to help you choose the right quick loan for your business.
Consider the need
The first step to choosing a quick loan for your business is to realistically assess the need you want to meet and how much funding is needed. Make sure it’s crucial and profitable.
When you know exactly what you need, do your diligence to make a realistic estimate of the costs. If you need to buy a piece of equipment costing $200,000, a business line of credit or short term-loan is best. However, if the cost is about $50,000 then you have more options as a personal loan could suffice.
Review your credit score
Most lenders will review your FICO credit score to determine whether you qualify for quick loans. You should do a credit check of yourself beforehand to predict which type of quick loan you qualify for. That way you can target your efforts directly at lenders with whom you stand a chance.
A low credit score might mean that you qualify for small loan amounts from different lenders. Or you could simply choose a merchant cash advance or a payday loan.
If your credit score is on the high side, you can take one large quick loan instead of several small ones. So, you don’t have to pay a lot of processing fees to different lenders.
Understand the terms and conditions
Don’t get too excited about how much lenders are willing to give you. Take a moment to read the fine prints on the agreement page. Each loan type comes with its terms and conditions that spell out repayment terms, interests, and processing fees. You have to consider these important factors when choosing a quick loan.
What to know before you borrow fast cash loans
Before you go on applying for a quick loan there are a few things you should keep in mind. Understanding the following can help you make a smarter decision in taking a loan.
Loan costs
There are costs associated with fast loans, these are usually interests and fees. Interest is usually a percentage of the principal that you have to pay alongside the principal as the loan drags on.
Fees vary according to lenders and depend on the type of quick loan applied for and how much funding you are getting. The common fees that you have to pay include online application fee, origination fee, processing fee, annual fee, and late repayment fee, and several others. Just make sure you understand how these fees pile up before you apply for a quick loan.
Credit score damage
Taking a fast loan and not paying back as at when due can seriously damage your credit score. That blemish on your credit score may affect your eligibility for other loans, quick or traditional. So, you should take out loans that you are almost certain your business can pay back on time to make sure your credit score isn’t affected.
Pros and Cons of a Quick Loan
Before you decide to borrow a quick loan, you should consider familiarizing yourself with the pros and cons of taking a fast cash loan to ensure that you create a safety net and plans of repayment.
Pros
- Fast loans are flexible as they can be used for almost any purpose. Lenders do not place restrictions on what you can or cannot do with your quick cash loans.
- The best quick loans usually have lower interest rates than personal credit cards.
- You can access a quick loan with or without collateral and the process is relatively easy and fast.
- Bad credit scores are not a barrier to getting some quick loans.
- Once you get approved you can fund same day
Cons
- Even the best quick loans have high-interest rate and shorter repayment terms than regular loans.
- There are serious penalties for missing one scheduled repayment. Repeatedly missing payment deadlines can have terrible effects. Penalty fees and added interest may significantly increase your debt.
- May effect credit score negatively if not paid back on time.
How long will it take for the funds from a quick loan to show up in my bank account after I get approved?
Customers who are approved for a quick loan can get funding in as fast as same day. The time it takes may depend on the financial history and the current situation of your business. The lender’s policy, efficiency, and mode of operation also influence the time frame. Most online loans are disbursed within a few hours, or minutes even.
Can I apply for a quick loan if I already have one?
Yes, you can apply for another quick loan while repaying another. Lenders will look at your credit history and revenue to determine your eligibility. So if you have a good credit score and smooth cash flow you can qualify easily.
A stable substantial personal income can also help as lenders will look at your debt-to-income ratio too. Even if you are already paying off another loan with 50% of your income, you may still be eligible for a new loan.
How to Apply for a Quick Loan with Upwise Capital?
The process of getting a quick loan is quite easy. A quick loan from Upwise Capital is accessible in just three easy steps.
Step 1: Upwise has a dedicated phone number for loan applications so you can just call (646) 837-5522 and begin your online application process. You can also get a quick loan online by filling out the official Funding Application Form here.
Step 2: Upwise will review your information, do a quick credit check, and forward a loan approval note within 2 business days. After this, you will be required to sign a loan contract stating that you agree to the terms and conditions of the loan.
Step 3: Once you have signed and submitted your closing documents, you’ll receive the funds into a bank account of your choice within the next business day.
If I have a bad credit score can I qualify for a quick loan?
Yes, you can get a quick loan even with bad credit. Because it is well understood that bad credit scores aren’t always an indication of financial irresponsibility.
Online lenders will consider how long you have been in business (six months minimum) and your monthly and annual revenue. They will also look into your cash flow and debt history. So yes, even with less than a 600 FICO credit score, you can qualify for a quick loan.
However, you must understand that your options are limited and you are likely to get higher Annual Percentage Rates (APR). So, the loan amount you’ll be required to pay back plus interest will be higher than if you had a good credit score.
Do quick loans affect your credit score?
Yes, a quick loan will affect your credit score in both good and bad ways. It falls on you to decide what happens.
First, the bad. When you take out a quick loan, your credit score may suffer slightly. But then, the good news. Paying back on time will give your credit score a boost. Over time, taking loans and paying them back promptly will significantly improve your credit score.
Need Money Now? Apply for Quick Loans
There is so much that quick loans can do for you. You can save your business from financial constraints that would prevent growth or continuity with money from fast loans.
However, it is a risk you want to take care. So, you should choose a dependable lending platform like Upwise Capital to get you the right kind of quick loans.
Fill out the Funding Application Form to get started!
What are alternative options?
The fact that there are quick loans means that slow ones exist. These other loans are alternatives to quick loans that you can apply for, when your business needs don’t qualify as emergencies.
SBA Loans
SBA loans are the most popular government-backed loans for small businesses. It is a secured loan with low interest and long repayment terms. A business needs to have valuable collateral to qualify for an SBA loan. The loan amount can be up to $5 million which can be paid back in 10 years.
Learn more about SBA loans here.
Real Estate Financing
With real estate financing, a borrower can get 70%-80% of the market value of real estate they own as loan funds. So, rather than cash flow or revenue, loan approval in this case is based on assets ownership. The fastest processing time for a real estate financing loan is about two weeks but you can get up to $200 million and pay it back within 30 years.
Learn more about Real Estate Financing Loans here.
Equipment Financing
This kind of loan helps businesses finance equipment acquisition. You can get up to 100% of the funds you need for equipment through equipment financing loans sent to your desired bank account. Having bad credit scores does not prevent you from getting an equipment loan approved since the equipment purchase serves as collateral.
Learn more about Equipment Financing Loans here.
Conclusion
When there is an emergency expenditure that your business cash flow can not sufficiently cover, a quick or personal loan can come to the rescue. Despite emergencies, you can take out money quickly to build your credit score towards getting a larger loan in the future.
As the name implies, quick loans are easier and quicker to get than traditional bank loans. Most of them are unsecured and accessible to even those with bad credit scores. Although, they are supposed to be repaid within a short period and defaulting could result in a larger debt.
You can take advantage of Upwise Capital’s easily accessible quick loans program or any other loan products and lines of credit right now. Our team of funding experts will put together a list of products and lending solutions. Help is just a few clicks away. Simply fill out our Funding Application Form right now or call us on the phone at 775-5-UPWISE (879473) to get access to fast loans within 24 hours.
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