Bank loans are good, but how often do they meet you at your point of need? A savvy business owner works to stay creditworthy in banks but also knows instant sources of business funding to tap into during emergencies.
Here are five quick business loans for when your company needs immediate cash.
1-Short-Term Business Loans
Get fast funding in as soon as 48 hours to be paid within 3 to 18 months. Short-term business loans range from $2,500 to $250,000 depending on your firm’s creditworthiness.
The main downside with short-term business loans is they can be costly, with expenses similar to credit card lending.
2-Business Line of Credit
A line of credit can assist as a quick business loan particularly for the merchant who has one set up beforehand. Active business lines of credit offer emergency finances for small firm owners to tap into during tough times providing you haven’t maxed out your borrowing limit.
One striking advantage of lines of credit for businesses compared to other quick business loans is that they only charge interest on your current borrowing. Still, you have access to extra funds without having to fill papers for another loan.
However, with lines of credit, the provider may reduce your limit or shut down your line so you can’t get hands on finances when you need to. Plus, you’ll need to offer collateral and update financials now and again keep your line healthy.
More features of business lines of credit
- Access up to $10,000 to $1 million
- Make repayments within six months to 5 years
- Interest rates range from 7% to 25%.
3-Working Capital Loans
You can use working capital loans for numerous purposes and seize opportunities to improve your bottom line. These loans range from $2,500 to $250,000 and their terms last 3 to 18 months— to help businesses cover short-term needs.
In just 48 hours, merchants can gain access to the borrowed amount. But be sure to double-check your interest rates as they vary widely across providers from 7% to 99% per year.
More Pros of Working Capital Loans
- Little paperwork required
- Can be accessible even with bad credit.
- Some do not need collateral, but your business will have to make daily payments.
Working capital loans can help you weather short-term storms by providing almost instant cash to help you order inventory, pay taxes, cover payroll, and more.
4- Merchant Cash Advances
MCAs allow merchants to sell a portion of their business’s expected future sales to a financial provider in exchange for an amount. Business cash advances range from $2,500 to $250,000 and funding is almost immediate.
MCAs use factor rates and not interest rates, typically ranging from 1.14% to 1.18%. Plus, payments vary with your amount of sales and are automatically remitted daily from your merchant account.
More Pros of MCAs include;
- Fast business funding
- High acceptance rates and hassle-free renewals
- No collateral needed
- Easy settlement plans
- Revenue-based deductions
- No credit checks
A sudden breakdown can slow operations. Need extra cash to pay for expensive business equipment? With a 60% acceptance rate, equipment financing can offer you the money in just 48 hours.
Tips for Equipment financing
- You’ll need a down payment of 10 to 20 percent (but some providers offer up to 100% of the equipment’s worth).
- The equipment’s life estimates repayment period (but heavy equipment loans term last seven years).
- Interest rates can range from 8% to 30% per year, and the equipment serves as collateral.
- Some require collateral (but stay away from those that ask for personal investments like property or accounts)
Use these top 5 fast business loans to weather unexpected short business storms. The best product for you is the one that; is affordable, can be repaid without a hassle, and meets your small firm’s needs.
*Loans arranged pursuant to a California Financing Law license.