How We Chose the Best Fast Business Loans
- Loan Features: We evaluated the range of loan terms and loan amounts available, along with repayment optionality
- Application Process: We assessed the ease of the application process, including whether a hard credit pull was required and the funding time once approved
- Interest Rates & Fees: We compared the cost of borrowing across lenders, including the range of interest rates and any origination, prepayment, late payment, or maintenance fees
- Qualification Process: We compared eligibility requirements across lenders, including credit score, annual revenue, and business history requirements
- Customer Support: We looked at the resources each lender offered to borrowers, including online tools and multi-channel support, as well as the accessibility of speaking to a customer service representative
- Online User Reviews: We considered scores on third-party review sites like Trustpilot and ConsumerAffairs to assess customer satisfaction for each lender
- Perks and Bonuses: We paid attention to distinctive offerings like payment flexibility and evaluated each lender for advertising transparency and the use of advanced technology, giving bonus points to lenders that satisfy the criteria
What Is a Fast Business Loan?
A fast business loan is a way to get financing for your business quickly. Typically, quick loans for a business come from online lenders. Fast business loans can be any type of funding that is delivered faster than average. We chose to include lenders offering one-day funding for at least some applicants in our roundup of the best fast business loans.
When to Get a Fast Business Loan
Business owners often use financing to expand their physical location or hire new workers. A loan can also be used to acquire a new business. Here are some other common reasons why a business might need working capital quickly:
- Covering emergency expenses
- Replacing essential equipment
- Managing seasonal fluctuations
- Purchasing inventory
- Paying taxes
- Covering unpaid invoices
- Paying for insurance
- Launching a marketing campaign
How to Get a Fast Business Loan
While the process will vary across online lenders, getting a fast small business loan is typically painless. With many lenders, you’ll just need to connect your accounts rather than submitting paperwork. In general, here’s how it works:
- Decide what type of financing you need
- Get rate quotes from a handful of lenders you qualify for
- Accept the offer that best meets your needs
- Submit additional documents and/or agree to a hard inquiry, if required
- Once approved, sign your loan documents
- Wait to receive the money, typically by wire or ACH transfer
Types of Fast Business Loans
If you need funding for your business fast, there are several types of loans you can choose from. Determine which financing option best meets your needs:
- Term Loans: Term loans provide you with a lump sum that you repay in fixed installments. These can be short-term loans repaid quickly, or the term may be several years.
- Business Line of Credit: With a business line of credit, you are approved for a credit limit and can draw up to that amount as needed. You only pay interest or fees on the funds you use, and your line of credit replenishes as you pay it off.
- Equipment Financing: Equipment loans are used to purchase business equipment. They are often secured by the equipment and sometimes require a downpayment, but they often have lower rates than other types of business loans.
- Revenue-Based Financing: With revenue-based financing, you borrow a lump sum and repay the money as a percentage of your sales over time.
When to Consider Alternatives
There are a few reasons why you may want to choose an alternative to a fast small business loan.
- You don’t need money fast: If you can wait to get your funding, you may get better rates and terms with a loan backed by the Small Business Administration. SBA-backed loans also come with ongoing support for your business.
- You only need a small amount: If you only need a small amount that you expect to be able to pay back quickly, you might consider using a business credit card instead. A business credit card is another type of revolving credit line that allows you to spend money up to your credit limit and repay it over time. Business credit cards come with a grace period during which you do not accrue interest. Some also come with an interest-free introductory period that can last for months.
- A quick loan won’t meet your needs: If you’re purchasing commercial real estate or acquiring another business, a fast business loan likely won’t work for your needs.
- You prefer working with a lender in-person: Some people prefer to go to a bank branch and work with a loan officer face-to-face. You can’t get that experience with a quick online lender.
Alternatives to Fast Business Loans
A quick business loan isn’t the perfect solution for every business. Below are some alternatives you may consider:
- SBA-backed loans
- Business credit card
- Commercial real estate loan
- Business acquisition loan
- Bank term loan
- Business grants
- Angel investors
Sometimes, it makes sense for small businesses to pursue SBA-backed loans for their competitive rates and terms. But other times, when the cash need is urgent, an online business loan fits the bill. Rest assured, options are available for businesses that need a quick injection of cash. It’s possible to check your rate in minutes and have your money in a day. Just make sure you understand the terms and have a repayment plan before signing a loan agreement.