How We Chose the Best Same-Day Business Loans
- Loan features: We considered the available loan amounts and loan terms when evaluating lenders.
- Application process: We evaluated the ease of the application process, including credit check requirements, and selected only the lenders capable of providing funding the same day or next business day.
- Interest rates and fees: We considered the range of interest rates and fees when selecting the best same-day business lenders.
- Qualification process: We assessed the stringency of each lender’s requirements, including minimum credit score, annual revenue, and business history requirements.
- Customer support: We checked the accessibility of the customer service team and whether the lender offered digital support and other online resources.
- Online user reviews: We checked for issues with customer satisfaction by evaluating borrower reviews on third-party websites like Trustpilot and ConsumerAffairs.
- Perks and Bonuses: Lenders were given bonus points for maintaining advertising transparency, offering payment flexibility, and providing digital tools to borrowers.
What Is a Same-Day Business Loan?
A same-day business loan refers to any business loan or line of credit for which the funds can be delivered on the same day the applicant accepts the loan offer. Since same-day business funding options are few and far between, we’ve also included next-day business loans in our roundup of lenders.
When to Get a Same-Day Business Loan
Same-day business loans are most useful for emergencies, when you need to intervene quickly to keep your business up and running. Some examples of emergency situations include:
- Natural disasters
- Power outages
- Cyber security threats
- Property damage or vandalism
How to Get a Same-Day Business Loan
While the process will vary from one lender to the next, you can generally expect the following steps to getting a same-day business loan:
- Check your rate with one or more lenders
- Formally apply for the funding solution that best meets your needs
- Quickly submit any additional documents required for approval
- Accept and sign your loan documents
- Wait for the money to be transferred to your account
- Begin repayment
Types of Same-Day Business Loans
When you need fast funding for your business, there are several types of same-day business loans you may consider. Some of the most popular types of funding include:
- Business term loans: Term loans provide a lump sum that is repaid in fixed monthly installments.
- Business lines of credit: Lines of credit provide revolving access to funding. You can draw from a business line of credit as-needed and only pay interest or fees on the amount you borrow.
- Invoice factoring: Invoice factoring is a way to get money from your unpaid invoices. The factoring company provides a portion of the funds upfront and pays the rest, less any fees you owe, once payment has been collected.
- Revenue-based financing: With revenue-based financing, you borrow a lump sum and pay it back as a percentage of your revenue. Merchant cash advances are a form of revenue-based financing that typically come with high fees, but some companies provide revenue-based financing at competitive rates.
When to Consider Alternatives
Same-day business loans won’t be the best solution for every funding need. You might consider alternatives if:
- You need to cover a purchase that falls within credit card limits
- You can wait to shop around for the lowest rates and fees
- You need to purchase commercial real estate or acquire another business, and a quick loan won’t meet your needs
- You’d prefer to work with a loan officer face-to-face
Alternatives to Same-Day Business Loans
If a same-day business loan isn’t the right fit for your business, you may consider the following alternatives:
- SBA-backed loans
- Business credit cards
- Business grants
- Loans from friends and family
- Angel investors
Business emergencies can happen at any time. For example, if your window gets smashed or a key appliance breaks down and you can’t operate without funds for replacement, a same-day business loan can save you from losing revenue. However, it’s not always possible to get same-day business funding, nor is it the best fit for every business need. You should evaluate alternative options before applying for a same-day business loan, and always ensure you can afford the fees associated with borrowing.