Starting a small business isn’t easy and trying to manage one with insufficient cash-flow can be an absolute nightmare.
But, what if I told you that:
Not only can you get funding for your small business both online and fast, but there is also an alternative you can take if you need funding fast and you don’t have strong business credit.
Small Business Loans ($250k)
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In this post today I will go over how to get a small business loan fast and what the best alternatives are if you need funding for your business.
Step 1: Quick Docs To Have Ready Now
Before you start searching for your business loan, it’s crucial that you gather the documents and information you will need to complete an application. Below are a few of the documents and items you may need:
- Business Tax ID
- Personal Social Security Number
- Business & Personal Bank Statements
- Business Organization Docs (Articles Of Incorporation, etc)
- Access To Your Online Business Account
- Business Formation Date
- Drivers License
There could be more information needed depending on the lender you decide to move forward with, but in general, those documents should be more than enough.
According to a U.S. Bank study, a whopping 82% of businesses that failed cited cash flow problems as a factor in their failure.
Below we discuss what steps you will need to take to get your business loan fast.
Step 2: Be Ready to Answer WHY You Need the Loan
Lenders will ask why you need the loan and the reason will probably determine the type of funding you should go after.
Here are the best funding options by needs:
For Starting a Business
If you need the money because you are starting a small business then it’s almost impossible to get a business loan. Primarily because lenders will require some type of cash flow to show that the loan can be repaid.
Your best alternative is going to be a personal loan.
Personal loans are a great way to fund a new business if you can't qualify for a business loan, HELOC, or 0% credit cards. For personal loans up to $35,000, visit our #1 recommended personal lender.
How Much Do Startups Need?
According to the Wells Fargo Small Business Index, $10,000 is the average amount of startup capital required by a small business owner.
To Grow/Expand Your Business
If you're looking to grow your business, you need a business expansion loan.
These are longer term loans that are designed for businesses with more of a proven track record of success and financial stability.
The problem? Most traditional small business loans require lengthy paperwork, take weeks (or months) to get funding, and pull a hard inquiry on your credit.
That's why our top pick for business expansion loans is OnDeck.
OnDeck offers fast, low-cost expansion loans up to $500,000 with looser qualification requirements than other online lenders. You can complete the application in 10 minutes, get same-day funding, and it's only a soft credit inquiry.
Click here for a no-obligation, small business term loan quote from OnDeck.
To Free Up Your Cash Flow
Typically, the best loan type to free up cash flow will be a business line of credit.
For example, you are a chiropractor and perform services today but have to wait a couple of months to get paid by insurance.
You don't want or need a big lump sum today which you'll be paying on for years. You need a line of credit from which you can pull from time to time to bridge any cash flow holes.
Our recommended provider of business lines of credit is OnDeck. You can get up to $100,000 with same-day funding.
Click here for a no-obligation, business line of credit quote from OnDeck.
Small Business Loans ($250k)
Get your no-obligation quote in as little as 10 minutes. Up to $250,000 in working capital in 24 hours.
It's quick, easy, and free.
Managing Day-to-Day Expenses
Every business needs working capital to manage day-to-day expenses and grow. With a working capital loan, you could free up cash to finance seasonal loans, equipment purchases, or untimely cash flow gaps.
The problem is several lenders require significant collateral (sometimes even personal collateral like the business owner's home).
The problem is several lenders require significant collateral (sometimes even personal collateral like the business owner's home).
That's why our #1 choice for small business working capital loans is Kabbage. The offer short and long-term loans up to $250,000 and you can generally use the cash however you see fit. Best of all, most of their loans are unsecured, meaning collateral is not generally required.
Click here for a no-obligation, small business loan quote from Kabbage.
Step 3: Figure Out If You Qualify
Is The Business Earning Enough?
Some lenders want to see that you have reached a specific annual revenue; usually between $50,000 to $150,000 before they will lend to you.
You should make sure the lender you are considering will offer you a loan based on your income before moving forward with them.
How Old Is Your Business?
Lenders will also be considering how long you have been in business; most of the time they are expecting you to have been in business for at least 1 to 2 years to qualify for a business loan.
If you have been in business for a year or longer and have some revenue, you have a ton of options to get yourself a small business loan or business line of credit.
Quick Tip for Start-Ups:
Personal loans are a great way to fund a new business if you can't qualify for a business loan or 0% credit cards. For personal loans up to $35,000, visit our #1 recommended personal lender.
Credit Matters
If you don’t have an established business then you will probably be using your personal credit to qualify for your loan.
Your credit score is an essential factor that will help determine if you can qualify for a loan.
While most of the fast business loan options work for people with at least a 600 credit score; the better your score, the better your terms.
Receive Funds in 24 Hours
Get your no-obligation quote to see how much capital you could access. Up to $250,000 in working capital in 24 hours.
It's quick, easy, and free.
Will You Be Able To Pay The Loan Back?
As I stated above, it’s crucial to have a plan of attack on exactly how you are going to pay the loan back.
You want to make sure you have the funds to pay the loan back because some of these lenders will require you to pay back the loan daily or twice per month.
If your business income is $15,000 a month and you have about $12,000 worth of expenses, the most you can probably afford comfortably is about $1,200 in loan repayments and that’s pushing it.
How to Apply: Use Online Lenders For Fast Business Loans
Kabbage and OnDeck are our top picks when it comes to getting fast cash to deal with your business’s immediate needs.
If you need up to $250,000 then Kabbage is your best bet. You can complete their application in a matter of minutes and have the ability to get instant funding or funding in a few days.
You will need to have a credit score of at least 600 and two years in business with annual revenues of $50,000 to qualify.
OnDeck has a short-term loan as well as revolving lines of credit and whichever option you choose there is an opportunity for same-day funding.
Their small business loans go up to $500,000 and their lines of credit to $100,000 along with lower borrowing rates and waived fees for repeat customers.
If you need less than $100,000 in funding, then I would opt for the Line Of Credit over the loan because it’s a revolving account that you can keep using.
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Apply Online
Once you’ve compared your options, it’s time to apply for the loan that best fits your needs.
You should have all of the documents ready that we discussed above and complete the application online through the lender’s site.
Qualifying for Business Loans:
Most business lenders require 1-2 years in business and $50,000 or more in annual revenue to qualify for a business loan. Don't qualify yet? See our top personal loan companies.
And guess what, you can apply for more than one small-business loan at a time without the inquiries negatively affecting your personal credit score.
If you are in start-up mode with your business then you need to complete a credit card or personal loan application through the lender’s site.
Taking Action
Now that you know how to get a small business loan fast there is no need to wait around to get funding.
If you are starting a business or need to get the money together to keep your business running smoothly applying for a small business loan could change the scope of your business.