Table of Contents

  • Can You Really Get ‘Instant’ Business Loans?
  • Fast Business Loan Options
  • Applying for Fast Small Business Loans

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When financing your small business, sometimes you don’t have the time to wait weeks for a bank to process your loan application.

Fast small business loans help you solve this headache. You can get funding as fast as the same day you apply — and there are multiple options available to suit your needs. What about fast business loans with bad credit? Yes, those are completely possible, too.

Securing fast business loans online is easy. We’ll cover what choices you have, what you need to apply and how to get approved for the best quick business loans.

Can You Really Get ‘Instant’ Business Loans?

If you’re saying to yourself, “I need a small business loan fast,” or wondering whether same-day, bad-credit business loans are even a thing, know this: Financing is available and it’s available quickly. 

Thanks to the expanding lending marketplace on the web, it’s possible to secure same-day business loans online.

Fast business lending comes in many forms. You can secure large and small principal amounts, and some have unique structures that can appeal to businesses in certain industries and stages of growth.

The type of online business loan you pursue will determine how fast you can gain access to the funds. Some products, such as a merchant cash advance and short-term loan, feature a fast-tracked application and underwriting process. In certain circumstances, you can secure capital the same day you apply. 

Others, such as business term loans, require more due diligence on the part of the online lender. But the process is still streamlined. Generally speaking, borrowers can expect to receive a lending decision within 24 to 48 hours with the funds deposited the following day.

How Can Online Lenders Work So Fast?

Online lenders process applications and distribute funds much faster than traditional lending institutions. But how are they able to service quick business loans?

 

For one, they aren’t held to the same regulations that banks are. As a result, online lenders don’t have to check off as many boxes and go through as much red tape when vetting an applicant.

 

Second, online lenders require less paperwork. Some even offer no-doc business loans, drastically cutting down the time it takes for a business owner to complete an application and a lender to process it.

 

Third, technology is interwoven into the fabric of the online lender business model. Applications are handled entirely online. Lenders can securely connect to applicant accounts and assess creditworthiness. And advanced computer algorithms take thousands of data points into account to make a sound lending decision within minutes.

How Do Speed and Convenience Affect Cost?

The tradeoff for this speed and convenience is higher rates and shorter terms. Because online lenders take less time to vet an applicant and work with a broader spectrum of small business owners, they take on more risk.

While a small business owner can secure a loan fast, they’ll be required to pay off the loan sooner and at a higher interest rate than they would through a traditional lender. Even if you have a solid business credit history, expect your interest rate to be at least 5% more than it would be for a bank loan.

Small business tip: If you have strong enough credit history and sales records to be approved for bank loans, make sure to weigh your options. Applying for one takes time, but if approved, it will save you in interest. 

 

Determine whether you need to get a business loan fast, or if it’s worth waiting to get a bank loan.

Fast Business Loan Options

If you’re looking for fast funding business loans, you have plenty of options. The right choice for you will depend on the amount you need, your creditworthiness and business profile.

Online lending marketplace operators make securing small business loans fast and easy.

Term Loans

At-a-GlanceDo You Qualify?
Up to $500,0001 year or more in business
1-5 year repayment term$100,000 or more in annual revenue
Interest rates starting at 7%Credit score of 600 or more
Funding as fast as 1 day

Online term loans are a direct alternative to bank loans. They offer high principal amounts and extended repayment terms, although both are capped lower than what you’d find with a big bank.

For instance, through the lending partners of Fast Capital 360, you can borrow up to $500,000 and pay it off between 1 year and 5 years, depending on your creditworthiness. 

Credit history will also determine your interest rate, which starts slightly over bank loans at 7%. Unlike banks, however, you can get approved for a fast business loan in as little as 24 hours with funds deposited the following business day. They’re great for any substantial business expense, including commercial real estate or launching a new product.

Short-Term Loans

At-a-GlanceDo You Qualify?
Up to $500,0001 year or more in business
3-18 month repayment term$75,000 or more in annual revenue
Interest rates starting at 10%Credit score of 540 or higher
Funding as fast as same day

If you need to borrow a large amount of money and need it quickly, short-term loans could be your best bet.

Through Fast Capital 360, you can get a short-term loan up to $500,000 deposited into your bank account within 24 hours. 

Short-term loans are perfect for equipment upgrades, hiring more employees and more. They also can be used to get over cash flow delays caused by late-paying customers.

For Fast Capital 360’s most qualified borrowers, short-term online loan interest rates start at 10% and terms generally fall within the 3- to 18-month range.

Business Lines of Credit

At-a-GlanceDo You Qualify?
Up to $500,0001 year or more in business
6-month to 3-year repayment term$75,000 or more in annual revenue
Interest rates starting at 8%Credit score of 540 or more
Funding as fast as 1 day

If flexibility is what you need, a business line of credit is a great option. They allow borrowers to withdraw only as much funding as they need from a pre-approved credit limit. Through our funding partners, Fast Capital 360 offers credit lines up to $500,000. 

Interest is only paid on what you take out, and rates start at just 8%. This is much lower than what many high-limit business credit cards offer, which is a similar solution for revolving capital needs.

Think of a business line of credit as a loan you have on standby. If you have an emergency or have recurring cash flow needs, you have immediate access to funding. After you pay it back between 6-36 months, you can take out money the next time you need it.

Accounts Receivable Financing

At-a-GlanceDo You Qualify?
Up to 80% of outstanding invoices1 year or more in business
Repayment based on when customers pay$150,000 or more in annual revenue
Factor rates starting at 1.02Credit score of 600 or higher
Funding as fast as same day

Accounts receivable (AR) financing, sometimes called invoice financing, refers to the practice of selling unpaid invoices in exchange for an advance worth a percentage of their value.

Small businesses with slow-paying customers know all too well how devastating late payments can be for managing one’s cash flow. Through Fast Capital 360, you can access up to 80% of your invoices’ face value with AR financing. Funds from this fast business financing option can be deposited into your account in less than a day. Fees accumulate until your customer pays their invoice. 

Instead of paying an interest rate, these fees are calculated using a factor rate. Here’s an example of AR financing with $15,000 at a 1.02 weekly factor rate:

Invoice Amount: $15,000

Advance Amount: $12,000

Reserve: $3,000

The lender charges a weekly factor fee of 1.02 until the invoice is paid in full. 

Weekly Factoring Fee: $153 a Week 

It takes the business owner’s customer 12 weeks to repay the invoice.

Cost of Financing: $1,836

Rebate Owed to Business Owner: $1,164

In this example, $153 is deducted from the reserve each week the invoice goes unpaid. This can add up if your customers drag their feet, so make sure to consider this before applying for invoice financing.

Merchant Cash Advances

At-a-GlanceDo You Qualify?
Up to $500,0006 months or more in business
3-18 month repayment term$75,000 or more in annual revenue
Factor rates starting at 1.14Credit score of 500 or more
Funding as fast as same day

While not a conventional loan, merchant cash advances (MCAs) provide a lump sum of cash that must be repaid over a term, with interest.

The key difference between a term loan and an MCA is that the latter doesn’t have to be repaid by making monthly debt repayments. Instead, MCAs are gradually paid off via automated clearing house payments or through a percentage of every debit or credit card transaction. 

As with AR financing, Fast Capital 360’s MCA partners use factor rates to determine your cost of borrowing. Payments are drawn either daily or weekly until you pay off the original balance plus the lender’s fees.

MCAs are a suitable fast business financing option if you need to cover emergencies or basic expenses, such as payroll, on short notice. 

They also are great for borrowers who don’t qualify for other quick business loans because of limited or poor credit, lower revenues or a short time in operation.

Equipment Financing

At-a-GlanceDo You Qualify?
Up to 100% of equipment value2 years or more in business
1-5 year repayment term$160,000 or more in annual revenue
Interest rates starting at 8%Credit score of 620 or higher
Funding as fast as 2 days

Equipment financing is a great fast business loan option for businesses within industries that are reliant on having the latest, most dependable equipment to operate effectively. 

If a vital piece of machinery breaks down or you need a new piece of equipment to grow your business, it can get you up to 100% of the value in as little as 2 days. 

The most qualified applicants can obtain equipment financing with interest rates starting at 8% through Fast Capital 360. You can repay the loan over a longer term—up to 5 years. 

The equipment itself is used to secure the loan, making it a viable quick business loan option for businesses that have little to no collateral available.

SBA Express Loans

At-a-GlanceDo You Qualify?
Up to $350,0002 years or more in business
5-10 year repayment term$160,000 or more in annual revenue
Interest rates based on prime rateCredit score of 620 or higher
Funding within 30-60 days

Think of SBA Express loans as a middle ground between bank loans and the fast small business funding from online lenders we’ve mentioned. You get a bit of the best of both worlds, thanks in part to the Small Business Administration (SBA). 

If you can wait about a month to get funding (which is still much quicker than most bank term loans) and can qualify, applying for an SBA loan is a great option to finance your business.

Interest rates are maxed out at 6.5% over the prime rate, making them more affordable than other forms of alternative financing.

The SBA guarantees a portion of the loan, in this case, up to 50%. This reduces the risk to lenders, opening up opportunities to businesses who otherwise wouldn’t have them. This does mean, however, that eligibility requirements are stricter than they are with alternative lenders.

Consider Express loans if you think their terms match your business’s funding needs.

Why fill out paperwork? Apply for a small business loan online.

Applying for Fast Small Business Loans

Offering quick, same-day business loans means online lenders must streamline the application process. This means less work for you, and less time worrying about when you can get the money you need.

Take Fast Capital 360’s process, for example. We work with many of the best online lenders, offering a marketplace where we can take your application and shop around for you to ensure you get the best deal. It’s simple, and the whole process only takes 4 steps.

Step 1: Answer a few basic questions to tell us about your business history and finances.

Step 2: Tell us about you so we can determine your eligibility.

Step 3: Connect your bank account so we can verify financial information.

Step 4: Get your money deposited directly into your bank account, sometimes within hours.

Since you need your money fast, make sure to have everything you need on hand before applying. 

Having the following available will help you complete the application and finalize the funding process:

  • Proof of identification and address
  • Last 4 months of bank statements
  • Tax returns
  • Voided check
  • Balance sheet, income and profit-and-loss statement (required for term and SBA loans)

Yes, same-day funding business loans are very much a thing. Depending on the strength of your application, you could have your funding within hours.

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