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Fast Small Business Loans

By Elise Moores Managing Editor at Fast Capital 360 Reviewed By Erin Ryan

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 could get funding as fast as the same day you apply — and there are multiple options available to suit your needs. What about getting fast business loans with bad credit? Yes, those are 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 fast business loans online.

Fast business lending comes in many forms. You can secure large and small principal amounts, and some financing programs 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 access 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 lender’s part. But the process is still streamlined. Generally speaking, borrowers can expect to receive a lending decision within 24 to 48 hours. If approved, funds could be deposited the following day.

Related: Conventional vs. Alternative Lending

  • How Can Online Lenders Work So Fast?

    Online lenders process applications and distribute funds much faster than conventional lending institutions. They can offer quick business loans because they aren’t held to the same regulations 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, 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 business bank accounts and assess revenue, cash flow and creditworthiness. Advanced computer algorithms take thousands of data points into account to offer near-instant small business loan approvals to qualified applicants.

How Do Speed and Convenience Affect Cost?

The tradeoff for the speed and convenience of quick business cash loans and financing offers is higher rates and shorter terms. Because online lenders take less time to vet an applicant and work with business owners who may have less-than-perfect credit, they take on more risk.

While small business owners can secure a loan fast, they’ll often be required to pay off the loan sooner and at a higher interest rate than they would through a conventional lender. 

  • Small Business Tip:

    If you have a strong enough credit history and sales records to be approved for a bank loan, make sure to weigh your options. Applying for one takes time, but you could save in interest if approved.

    Determine whether you need to obtain fast funding or you can afford to wait for a business loan approval from a bank.


Types of Fast Business Loans

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

Here’s a breakdown of various quick small business finance options, including minimum qualification requirements you’ll find within our network of lending partners.

Clock a dollar sign in the middle and the hour hand moving and the words “term loans” along the side

 

Term Loans: Funding as Fast as 1 Day

Do You Qualify?
1 year or more in business
$200,000 or more in annual revenue
Credit score of 600 or higher

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

Credit history will help determine your interest rate. Unlike banks, however, you can get approved for fast business loans in as little as 24 hours with funds deposited the following business day. Term loans are great for any substantial business expense, including commercial real estate or launching a new product.

Short-Term Loans: Funding as Fast as Same Day

Do You Qualify?
1 year or more in business
$75,000 or more in annual revenue
Credit score of 540 or higher

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

Through Fast Capital 360, you could get a short-term loan deposited into your bank account within 24 hours.

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

Business Lines of Credit: Funding as Fast as 1 Day

Do You Qualify?
1 year or more in business
$200,000 or more in annual revenue
Credit score of 560 or more

If flexibility is what you need, a business line of credit is a top quick loan option. Approved borrowers can withdraw as much funding as they need from a preapproved credit limit. Interest is only paid on what you take out. 

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. As you pay down your balance, your credit line replenishes, allowing you to reaccess available funds time and time when needed.

Accounts Receivable Financing: Funding as Fast as Same Day

Do You Qualify?
1 year or more in business
$150,000 or more in annual revenue
Credit score of 600 or higher

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 unpaid customer invoices know its impact on cash flow. You could access up to 80% of your invoices’ face value. Funds from this fast business funding option could 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.

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Merchant Cash Advances: Funding as Fast as Same Day

Do You Qualify?
4 months or more in business
$100,000 or more in annual revenue
Credit score of 500 or more

Merchant cash advances are an alternative when you’re in search of a small business loan with instant approval. While not a loan, a merchant cash advance (MCA) provides a sum of cash that must be repaid over a term with interest.

MCAs are gradually paid off via automated clearing house (ACH) payments or through a percentage of every debit or credit card transaction.

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

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

They also are great for borrowers who don’t qualify for other quick small business loans. 

Related: Is a Merchant Cash Advance Right for Your Business? The Pros and Cons

Equipment Financing: Funding as Fast as 2 Days

Do You Qualify?
2 years or more in business
$160,000 or more in annual revenue
Credit score of 620 or higher

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

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

The equipment itself is used to secure the loan, making it a viable path among the options for quick business loans for companies with little to no collateral available.

Do you need a loan for your small business?

SBA Express Loans: Funding Within 7-60 Days

Do You Qualify?
2 years or more in business
$50,000 or more in annual revenue
Credit score of 650 or higher

Think of SBA Express loans as a middle ground between bank loans and the fast business funding from online lenders. 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 many bank term loans) and can qualify, applying for an SBA loan is a great option to finance your business and often more affordable than alternative financing.

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

Related: What Are the Current SBA Loan Rates?


Applying for Fast Small Business Loans

To offer quick, same-day small business loans, 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 top 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 a few 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: Choose your offer and get your money deposited directly into your bank account, sometimes within hours.

If you need fast funding for your business loans, make sure to have everything 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 4-6 months of bank statements
  • Tax returns
  • Voided check
  • Balance sheet, income and profit-and-loss statement (required for term and SBA loans)

Indeed, same-day funding of business loans is available. In fact, depending on the strength of your application, you could have your funding within hours.

A Few of the Best Lenders for Fast Business Loans

Below are a few of the top lenders we work with that offer quick business loans, even same-day funding in some cases. 

Of note, they’ve all been ranked “Excellent” on the popular consumer review website Trustpilot. 

Additionally, they are all accredited with the Better Business Bureau (BBB). OnDeck and Credibly have also earned the BBB’s highest A+ rating, while SmartBiz holds a B rating.

Lender Loan Types Financing Rates
OnDeck
  • Short-term loans: $5,000-$250,000 
  • Lines of credit: $6,000-$100,000
  • Term loan rates starting at 11.89% APR
  • Line of credit rates starting at 10.99% APR
Credibly
  • Merchant cash advances: Up to $400,000
  • Invoice financing: Up to $400,000
  • Equipment financing: Value of equipment
  • Term loans and lines of credit: Up to $250,000
  • Factor rates start at 1.09
  • Term loan rates: 9.99%-36%
  • Line of credit interest rates start at 4.8%*
SmartBiz
  • SBA Express loans: Up to $350,000
  • Based on prime rate plus a percentage, currently at a maximum of 7%

*The rate is a simple interest rate calculated from total repayments over 26 weeks

  • Accounts Receivable Financing
    Advance amount: Up to 80% of receivable value
    Repayment terms: Until the customer pays the invoice
    Factor rate: Starting at 1.02
    Funding available: Same day
    Advance amount: Up to 80% of receivable value
    Repayment terms: Until the customer pays the invoice
    Factor rate: Starting at 1.02
    Funding available: Same day
  • Business Lines of Credit
    Financing amount: Up to $250,000
    Estimated repayment term: 6 months - 2 years
    Interest rate: Starting at 8%
    Speed of funding: 1 day
    Financing amount: Up to $250,000
    Estimated repayment term: 6 months - 2 years
    Interest rate: Starting at 8%
    Speed of funding: 1 day
  • Business Term Loans
    Financing amount: Up to $250,000
    Repayment terms: 1 - 5 years
    Interest rate: Starting at 7%
    Speed of funding: 1 day
    Financing amount: Up to $250,000
    Repayment terms: 1 - 5 years
    Interest rate: Starting at 7%
    Speed of funding: 1 day
  • Commercial Loans
    Financing amount: Up to $5 million
    Loan term: 3 months - 25 years
    Interest rate: Starting at 7%
    Speed of funding: Same day
    Financing amount: Up to $5 million
    Loan term: 3 months - 25 years
    Interest rate: Starting at 7%
    Speed of funding: Same day
  • Equipment Financing
    Financing amount: Up to 100% of equipment value
    Repayment terms: 1 year - 5 years
    Interest rate: Starting at 8%
    Speed of funding: 2 days
    Financing amount: Up to 100% of equipment value
    Repayment terms: 1 year - 5 years
    Interest rate: Starting at 8%
    Speed of funding: 2 days
  • Merchant Cash Advance
    Advance amount: Up to $500,000
    Estimated repayment term: 3 - 24 months
    Factor rate: Starting at 1.10
    Speed of funding: Same day
    Advance amount: Up to $500,000
    Estimated repayment term: 3 - 24 months
    Factor rate: Starting at 1.10
    Speed of funding: Same day
  • SBA Loans
    Financing amount: Up to $5 million
    Repayment terms: 5 - 25 years
    Interest rate: Starting at 6.25%
    Speed of funding: 7 days
    Financing amount: Up to $5 million
    Repayment terms: 5 - 25 years
    Interest rate: Starting at 6.25%
    Speed of funding: 7 days
  • Short-Term Business Loans
    Financing amount: Up to $500,000
    Repayment terms: 3 - 18 months
    Interest rate: Starting at 10%
    Speed of funding: Same day
    Financing amount: Up to $500,000
    Repayment terms: 3 - 18 months
    Interest rate: Starting at 10%
    Speed of funding: Same day
  • Working Capital Loans
    Financing amount: Up to $500,000
    Repayment terms: 3 months - 5 years
    Interest rate: Starting at 7%
    Speed of funding: Same day
    Financing amount: Up to $500,000
    Repayment terms: 3 months - 5 years
    Interest rate: Starting at 7%
    Speed of funding: Same day

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