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Explore fast small business loan options tailored to your needs. Learn about the difference between fast and slower funding products, the easiest loans to secure for startups or established businesses, and eligibility requirements like credit score, revenue, and time in business.
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The Difference Between Fast Funding and Slow Funding In small business financing, there can be a significant time difference between fast funding and slow funding. However, it’s a bit more complex than that
Traditional small business loans and U.S. Small Business Administration (SBA) loans, which are the most affordable for those who have good credit, typically take weeks to process. The application process is more rigorous and borrowers must provide more financial and bank statements and meet stricter qualifying standards. The underwriting process with traditional banks and other business lenders may take several weeks.
The easiest business loans to get are also usually the fastest to get. Sometimes, small business owners with good credit and a strong loan application can get same day funding. Entrepreneurs are still usually subject to credit score requirements and other eligibility requirements. Nonetheless, the online application process with online lenders and other alternative lenders may take just a few minutes, and usually you’ll be able to get funding quickly.
Three of the Easiest Business Loans to Get The business loan interest rate averageis usually higher for these types of funding for businesses. That said, each is a useful business loan option for new businesses, businesses that need cash fast, and business owners with bad personal credit or limited credit history.
Working Capital Loans Working capital loans enable businesses to cover operating expenses or pounce quickly upon business opportunities. Available from both traditional lenders and alternative lenders, the terms of these loans are relatively short-term, often between three months and 18 months. The typical business loan interest rates vary; sometimes working capital loans can be at 7 to 8 percent, but other lenders may charge 30 percent or more.
Business Lines of Credit If you have more time to ramp up, a business line of credit can be a good solution. A business line of credit is part loan and part business credit card. A lender approves you for a maximum credit line, which you can debit into your business bank account. Rather than pay interest on the whole loan amount, you only pay interest on the amounts you use.
Merchant Cash Advance Amerchant cash advance(MCA) can be the solution for someone who needs an immediate lump sum of money. Cash advance companies provide an infusion of capital in return for a percentage of your future credit card receipts and other business receipts. Among the easiest business loans to get, MCAs offer low qualification requirements and fast funding.
