When you have an immediate business expense but not enough cash to cover it, you most likely want access to financing as soon as possible. Fortunately, many alternative lenders offer same-day business loans for entrepreneurs in a pinch.
Traditional banks and credit unions can take weeks or months to approve a business loan application. If your expenses canâ€™t wait that long, you can apply online for a business loan from an alternative lender and be approved in a few hours. But it may cost you â€” the tradeoff for speed with an online lender may be higher rates than those you could find at a traditional bank.
Keep reading to find out more about same-day business loans and where you can find fast funding when you need it.
Business owners can find same-day financing in several forms. Here are a few products that you can expect to see from alternative online lenders.
Business owners can take out short-term loans to cover emergency expenses and pay back the balance within three to 18 months. Applications for short-term loans usually require minimal paperwork, which speeds up the approval process. You may be required to offer collateral or submit tax returns and balance sheets to be approved.
A line of credit allows business owners to withdraw funds from a set amount on an as-needed basis. You would only need to pay back what you actually borrow, and the full amount would become available again after the debt is paid back.
Like a business line of credit, a business credit card would allow you to cover expenses as they come up. Business credit cards are often a popular option for owners of startup businesses, as well as those who cannot secure other types of financing. The short-term loans and lines of credit we mention early may be off limits to startups.
Merchant cash advances are different than traditional loans but are among the fastest business financing products available. A merchant cash advance provider would purchase a portion of your future receivables, such as credit card sales, in exchange for a lump sum of money. The cash advance provider would then take a percentage of your daily sales until the full advance is paid back. You would make a larger payment on days when your sales are high.
Invoice financing, also called accounts receivable financing, allows business owners to borrow money against invoices. An invoice financing company would collect on your outstanding invoices, taking a percentage of each invoice plus a fee, in exchange for immediate funding.
Invoice factoring is slightly different but still lets you use invoices as collateral for financing. A factoring company would purchase your invoices, then collect payments from your customers before paying you the remaining balance. You may lose your ability to interact with customers if you choose invoice factoring, whereas invoice financing may allow you to continue collecting payments yourself.
Many online business lenders advertise fast time to funding. We chose five online lenders where you could find immediate financing. Our selection was based on the following criteria:
National Funding offers small business loans from $5,000 to $500,000 to qualifying business owners. After applying, you could receive funding in as little as 24 hours. National Funding does not require collateral or a down payment from applicants, and thereâ€™s no obligation to accept a loan offer. You could use a loan from National Funding to pay bills, maintain working capital, purchase inventory or cover other day to day expenses. National Funding requires just one year in business and $100,000 in annual sales.
OnDeck provides short-term and long-term business loans up to $500,000 with repayment terms spanning 3 to 36 months, as well as lines of credit up to $100,000. If approved, you could receive funding within 24 hours. OnDeck requires applicants to have one year in business, $100,000 in gross annual revenue and a personal credit score of at least 600. Your loan amount and interest rate would depend on your business performance and your personal or business credit profile. To pay back your loan, you would need to make fixed daily or weekly payments that OnDeck would automatically deduct from your business bank account.
Kabbage offers lines of credit up to $250,000 for eligible business owners. If you need a smaller amount of cash right away, Kabbage could approve a line of credit up to $200,000 in minutes. Kabbage asks for at least one year in business and either $50,000 in annual revenue or $4,200 in monthly revenue in the last three months. 6â€“ or 12-month repayment terms are available for a line of credit. You would need to pay back either one-sixth or one-twelfth of your total amount each month, depending on your terms, plus a monthly fee ranging from 1.5% to 10% of your principal, which would be based on your business performance.
Reliant Funding provides small business loans and merchant cash advances between $5,000 and $500,000 with repayment terms spanning six to 12 months. Many Reliant Funding customers are approved in a few hours and receive funding within the next 24 hours. To qualify, you need at least one year in business and at least $100,000 in annual sales, or about $10,000 per month. Reliant Funding would review your credit score, but it would not be the deciding factor. Reliant Funding also does not require collateral or a personal guarantee for most borrowers. Once approved, you can use financing from Reliant Funding to cover any business expense.
Everest Business Funding offers merchant cash advances from $5,000 to $1,000,000, issuing funding to qualifying business owners within 24 hours. You can use a merchant cash advance from Everest Business Funding to buy equipment, cover payroll or hire more employees, among other expenses. Everest Business Funding requires just three months in business, $5,000 in monthly revenue and a personal credit score of at least 500. To collect repayment, Everest Business Funding would take a percentage of your daily credit card transactions. Be sure you can afford fluctuating daily payments before committing to this financing product.
Sometimes, you may not be able to put off certain business expenses. When you need money to cover an immediate cost, consider same-day financing options from alternative online lenders. In most cases, you could be approved in a matter of hours and see funds in your bank account in one day.
Though you may be in a rush to receive funding, make sure you fully understand the product youâ€™ve chosen. Many fast financing options also have rapid repayment terms, which the lender may automatically collect from your daily sales or business bank account. Read the fine print of your loan agreement before signing.
If you receive an offer from a lender that you feel comfortable working with, as well as interest rates and repayment terms that work for your business, you could receive money right away to cover business expenses. Same-day business loans can help you prevent an unexpected expense from derailing your operation.
By clicking â€śSee Offersâ€ť youâ€™ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.