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Business Emergency Loans: Your 4 Best Options

By Elise Moores Managing Editor at Fast Capital 360 Reviewed By Mike Lucas Updated on May 04, 2021

Running a business comes with its fair share of unpredictability. That includes natural disasters, economic downturns and pandemics such as the COVID-19 outbreak.

When you find yourself facing an unexpected issue, an emergency business loan might be your best solution. We’ll cover your 4 best options.

What Is an Emergency Business Loan?

An emergency business loan is fast, accessible funding that can be used to help your business cover unexpected costs in times of crisis.

The most common types of emergency funding for small businesses are short term. Repayment periods rarely exceed 18 months.

Emergency small business loans also are fast to fund. For certain financing products, it’s possible to apply, get approved and funded within a 24-hour window. But this accessibility and speed do come at a cost. Generally, you’ll find emergency business funding has higher APRs than conventional loans for small businesses.

Do you need a loan for your small business?

Why Would My Business Need an Emergency Loan?

There are several scenarios when you might need emergency business cash to keep operations running.

Here are some instances when unexpected expenses can arise and when you might need a small business loan immediately:

Replace or Repair Business Equipment

Every business has a piece of equipment that either makes a worker’s job possible or contributes greatly toward efficiency. Replacing this type of equipment can be expensive, but necessary, especially if your business relies on it for its daily operations.

An emergency business loan can help get your business the equipment it needs to continue operating normally.

A man fixes the inner workings of a computer tower. Emergency business loans can help you cover unexpected expenses.

Cover a Customer’s Unpaid Balance

If your business manages multiple customer accounts and one or more of those customers are unable to pay your company for its services on time, it may affect how your business functions.

Emergency money for your small business can help make ends meet while you wait for outstanding balances to be paid.

Business Disruptions

As a small business owner, you do your best to prepare for busy seasons and lulls as well as keep an eye on the news and trends that will impact your industry or the economy as a whole. However, despite your best efforts, you could still experience business disruptions due to either a natural disaster or a national health crisis.

The Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) can help you obtain an urgent business loan to cover expenses when your doors are closed because of a pandemic or wildfires, floods and storms.

With the EIDL the SBA guarantees a portion of emergency small business funding—up to $2 million—to help you meet expenses such as rent, utility bills and employee salaries until your business can resume normal operations.

The expanded SBA 7(a) loan program for businesses impacted by the COVID-19 pandemic has extended its loan application deadline until Dec. 31, 2021.

You can also access emergency small business loans if a disaster has been declared in your area, interrupting your daily functions.

Pursue Time-Sensitive Business Opportunities

Another great use for an emergency business loan is to take advantage of a business opportunity.

For instance, emergency small business funding can help you act on a limited-time discount on a product you’ve been waiting to add to your inventory.

Benefits of an Emergency Business Loan

Short-Term Benefits

  • Overcome a temporary need for funding
  • Avoid stretching your business thin on capital
  • Keep your business operating as normal without making cutbacks

Long-Term Benefits

  • Seize opportunities that optimize your company’s growth
  • Short-term emergency small business loans allow you to avoid long-term financial commitments
  • Don’t allow a short-term issue to affect the way your business operates long term

Where Can I Get the Best Short-Term Emergency Business Loan?

Emergency small business loans are offered primarily by alternative online lenders.

Alternative lenders typically have lower approval requirements than their conventional counterparts. That means, if your business is young or generates a low amount of revenue, you still might have emergency business finance options. That also applies if you’re seeking an emergency business loan with bad credit.

Alternative lenders also are known for their streamlined approvals driven by data analytics and online service enhancements. The application process is facilitated entirely online, decisions are made in hours and in certain circumstances, funds from emergency small business loans can be deposited the same day approval is issued.

4 Ways to Get Emergency Business Cash Fast

1. Take Out a Short-Term Loan

Some lenders can approve up to $500,000 in short-term funding, and capital can be released the same day as approval. These loans are usually repaid over a 3-18-month period.

2. Consider a Merchant Cash Advance

A merchant cash advance (MCA) is another emergency business finance option that provides the borrower with a lump sum of cash in exchange for a portion of the business’s future sales — paid in daily or weekly installments over several months. Thanks to looser lender requirements, it can be easier to qualify for an MCA than other types of financing.

3. Open a Line of Credit

As with a credit card, a line of credit allows businesses to withdraw money — up to a maximum amount — to cover various expenses. Lines of credit can be secured with collateral or unsecured. Interest is paid only on the amount of capital withdrawn, and capital becomes available again after payments are made.

4. Use Your Unpaid Invoices as Collateral

If you’re waiting on customers’ payments for goods or services, you can still get immediate access to a portion of that money with accounts receivable financing (also known as invoice financing). The lender will fund the business with up to 80% of the money owed. Once the invoice is paid, the business will receive the balance — minus any lender’s fees. This can be a good option for a business with little or poor credit history because lenders are more concerned with the likelihood of customers paying their invoices.

How Do I Apply for Emergency Business Funding Online?

To apply for emergency business funding online through Fast Capital 360, you’ll need to provide basic information about yourself and your company, along with your 6 most recent business bank statements.

Fast Capital 360 uses an online application to keep things quick and simple. After all, when you need emergency small business funding, the last thing you need is a lender that is going to drag its feet throughout the application process.

A person holds a cup of coffee and sees a phone notification that their financing application was approved.

3 Reasons Why You Should Apply for Funding Through Fast Capital 360

1. Approval Within Hours

At Fast Capital 360, we are dedicated to helping businesses find the right funding option. Once you complete your online application, we start working for you. You might receive a call from one of our experienced business advisors in as little as 30 minutes.

2. Next-Day Funding

Short-term financing is perfect for emergencies. Your business advisor will inform you about the options available for your business. If you find the emergency money for your small business you’re looking for, all you’ll need to do is sign your contract and you could receive the money as soon as the following business day.

3. No Pressure

Our business advisors are here to help you any way they can — whether that means getting you funded as soon as possible or pointing you in a direction that might better serve your company. If for any reason you’re unhappy with the options we provide you, there’s no pressure to sign a contract.

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Who Qualifies for an Emergency Business Loan?

Getting a short-term business loan can help owners more easily navigate unpredictable events and the costs that come with them. Through our funding partners, Fast Capital 360 likely can provide emergency business cash to companies meeting these minimum requirements:

  • At least 1 year in business
  • $75,000 in annual revenue
  • A credit score of 540 or better

I Need a Short-Term Emergency Business Loan. Now What?

If you need emergency small business funding and you aren’t sure where to turn, we can help.

We know how overwhelming it can be to sift through lenders who all claim to offer the best funding options for your business. Not only can this process be confusing, but it may also take longer than you and your business can afford to wait.

When you apply with Fast Capital 360, we take the information you’ve provided us and bring it to our network of lenders to find you the loan you’re looking for — fast.

The next time you need a business loan to get through an emergency situation, instead of feeling defeated, know that there are financing options available aimed specifically to help you and your business through difficult times.

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