Whether it's to take advantage of unexpected opportunities (such as finding discounted inventory or expanding into a new market), to close cash flow gaps, or to address emergencies, getting quick business financing can truly be a lifesaver.
Being able to get extra cash can make a big difference in any business, providing you with extra cash for those times when you need quick action.
But what are some of the most important things you need to know about quick business financing? In this article, we answer some important questions – from eligibility requirements for this type of financing to prices, interest rates, and more.
What is Quick Business Financing?
Quick business financing refers to a variety of financial instruments designed to provide businesses with quick access getting money – for example, with National Business Capital, it can take 24 hours, up to a week depending on the type of loan and your creditworthiness.
Other types of quick business financing include:
- Business Line of Credit – A business line of credit can be a good way to get additional funding on a revolving basis, meaning you can take what you need up to a certain limit, pay it off, and borrow again without having to reapply for a new loan. .
- Short Term Business Loans – Term loans are among the most popular types of quick business financing, allowing you to get quick access to money with repayment periods between 6 and 18 months. They are great if you need to see an immediate ROI from your financial investment.
- Income Based Funds – With income-based financing, you can also get quick business financing through future sales of your business. This quick and flexible solution is great if you need cash in the short term, all without scheduled monthly payments.
- Resource Finance – If you need quick access to money to buy equipment, such as equipment or a vehicle for your business, equipment financing is another great way to grow your business. You will need to show a 700+ FICO Score, and $500k in annual income.
- Small Business Loans – Small business loans are among the most popular options for getting quick access to additional funds. They give you a lump sum of money that you can use for any business purpose, from acquiring new businesses to opening new physical locations, or buying equipment.
How Fast Can I Get Funds? Banks vs. Other Lenders
When it comes to quick business financing, it is important to remember that traditional lenders, such as banks, do not offer this type of financing solution.
Their loan eligibility criteria are much stricter than those of online or non-traditional lenders, and they require extensive documentation that can take weeks to review and be approved (or not!).
On the other hand, non-traditional lenders, such as Specialty Finance Group National Business Capital, can expedite financing by offering a streamlined application process and flexible eligibility criteria. Let's compare the two:
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How Much Can I Borrow With Quick Business Financing?
So, exactly how much money can you borrow if you're looking to get quick business financing? The answer will depend on the type of business loan you are applying for, your creditworthiness, the lender you choose, and your collateral.
Let's look at some examples:
- Short Term Business Loans – From $2,500 to $500,000
- Income Based Funds – From $5,000 to $500,000
- Business Line of Credit – From $10,000 to $2 million
- Invoice Financing – Up to 85% or 90% of the value of your outstanding invoices
Your time in business is important when applying for a quick loan – most lenders and financial institutions prefer that your business has been in operation for at least one year.
In general, the longer your work history, the more likely you are to qualify higher loan rates. A steady, steady income and profit can increase the amount you are eligible to borrow.
What Are The Benefits Of Quick Business Cash?
There are many benefits you can take advantage of if you want to get business financing quickly. Some of them include:
- Quick Access to the Capital – They allow you to get money very quickly, which can be important if you are faced with urgent expenses or unexpected opportunities, but you do not have money on hand.
- Easy Application Process – Instead of taking days and hours to fill out a lot of paperwork at the bank, you can expect to provide smaller documents with another lender – and the application can be completed in minutes.
- Automatic Authorization – Special Finance Groups like National Business Capital use an automated underwriting system to quickly evaluate applications, allowing us to make quick decisions.
- Flexible Requirements – Quick business financing options often have flexible educational requirements compared to options offered by traditional lenders. They give you the opportunity to get financing even if your credit score is less than perfect.
- Cash Flow Relief – If you need quick cash flow help to deal with short-term financial challenges such as paying wages, a quick business loan is a great way to achieve that.
- Minimum Collateral Requirements – Many quick financing options, such as business credit cards and other short-term loans, do not require collateral. This reduces your risk if you don't have valuable assets to pledge.
What are the terms and conditions of quick business financing?
Interest rates can vary greatly between different types of quick business financing – here are some examples:
- Short Term Debts – Range from 8% to 80%
- Income Based Funds – Factor ratings from 1.1 to 1.5
- Business Line of Credit – From 7% to 25% APR
- Invoice for funds – Range from 1% to 3% of the invoice amount per month
Repayment terms can vary greatly depending on the borrower, the type of loan, and your creditworthiness as a borrower. However, in most cases, we usually look at the payment terms in between 6 months and 5 years.
Qualify for Fast Business Financing through NBC
If you want to qualify for fast business funding, look no further than National Business Capital. With $2+ billion in funding since 2007, multiple awards, and an experienced team of Corporate Finance Advisors, we have everything you need to find the best financing options for your project.
Are you ready to get started? Apply here.
