4 Emergency Business Loans To Save The Day

4 Emergency Business Loans To Save The Day
Dustin Clendenen
on November 8, 2017
Read in 4 min

Pipes burst.

Delivery trucks break down.

Servers go haywire.

Employees embezzle money.

Stuff happens.

This is true in life, and definitely true in business.

All sorts of emergencies are bound to crop up no matter what kind of business you run, and how careful you are.

Unfortunately, many of these emergencies can only be successfully weathered with cash on hand.

Even if you have plenty of credit cards, they might not be ideal for all situations or even useful for the range of emergency expenditures you’ll have to make.

This is especially true if what you’re facing isn’t even an emergency, but a business opportunity that requires you to act with lightning speed.

Nothing beats liquid cash.

And when you don’t have enough on hand, one of the fastest ways to acquire the working capital you need is through loans.

Funding Options APR Do you qualify? Time in Business Annual Revenue
Funding Option
Get Started
APR
5-50%
Estimated Apr
Do you qualify?
500
MIN CREDIT SCORE
Time in Business
At least 6 months
Annual Revenue
At least $100K
Funding Option
Learn More
APR
1.5% - 10%
Monthly Fee Rate
Do you qualify?
N/A
MIN CREDIT SCORE
Time in Business
At least 1 year
Annual Revenue
At least $50,000
Funding Option
Get Started
APR
6-50%
Estimated Apr
Do you qualify?
500
MIN CREDIT SCORE
Time in Business
At least 3 months
Annual Revenue
No minimum

Finding a Loan

As tough as the current economy is, entrepreneurs actually have more financing options available than ever before.

All these choices might be overwhelming, and to save time, many business owners will just apply for a loan from the first or first few lenders they come across.

Avoid doing this, because you could save hundreds or even thousands of dollars with just an hour of research.

Here’s just a few factors to consider:

How much money do you need?

Many loan types have specific minimums or maximums, so be aware of exactly how much money you need (or at least a specific range) to rule out looking at any loans or lenders that won’t work with your funding needs.

How fast do you need financing?

Do you need to make a purchase tomorrow or can this emergency funding be delayed for a week, or even a month?

The absolute shortest amount of time that some loans can even hit your account is in 48 hours, so be mindful of how fast you actually need the cash.

What are the loan terms?

The speed at which you get the money, the APR and the timeframe to repay the loan are huge factors to consider before you even apply.

Be aware that loans that hit your account quickly sometimes have higher APRs.

Have of all of this in mind and know what your limits are before you begin the shopping process.

This early bit of due diligence will actually save you a lot of time and money, and definitely make you more confident in your decision.

Types of Emergency Loans

Usually when you have an emergency, you need funding fast.

Here’s a look at the various types of loans that could give you capital to work with in as little as two days:

SBA Disaster Loans

If your business is located in a certified disaster area, you might be eligible for an SBA Disaster Loan.

These loans give you the working capital you need to repair your place of business, replace destroyed equipment, re-stock inventory and more.

These are the hardest types of emergency business loans to qualify for, but the terms are generous and well worth the effort.

Short Term Business Loans

Traditional term business loans sometimes require substantial minimum loan amounts, far exceeding what many borrowers actually need.

That means they may have a longer term for pay-off and be harder to qualify for.

Short term business loans, however, are often for smaller amounts of cash, have fewer hurdles for qualifying, and may have terms of two years.

The relatively small amount of money the loans are for also mean the money could land in your account faster.

Working Capital Loans

Working capital loans are exactly what they sound like: loans to keep your business running, paying for things such a payroll and other day-to-day expenses of operation.

They can also make great emergency business loans, because the funds can land in your account fast.

Personal Loans For Business 

Lenders know how important small businesses are to their owners—so it’s only natural that some of them would make personal loans available to entrepreneurs.

These types of loans often don’t require you to have an established business line of credit or even business documentation.

They can also have substantial repayment terms, going as long as seven years and funding up to $100,000.

How to Use Emergency Business Loans

Lots can go wrong in today’s world, partially crippling or completely destroying your business (and your revenue stream.)

Here are some examples of different things that can happen – and how emergency business loans can help.

Your business is damaged or destroyed in a natural disaster.

From hurricanes in Florida to earthquakes and wildfires in California, Mother Nature has a ton of ways to completely destroy your livelihood.

In the event of a natural disaster, you may be eligible for an SBA Disaster Loan, which offers up to $2 million in funding at a low interest rate for qualifying businesses.

Equipment failure.

Machinery breaks down, which is unfortunate when it’s integral to the operation of your business.

Maria Cruz, owner of Heavenly Flowers Too, experienced that firsthand when her delivery truck broke down.

Banks turned her down (and they would have taken too long to provide funding anyway), but she was able to get a loan for $60,000 processed in three days from a non-traditional lender and had her truck back up and running in no time.

If something like this happens to you, a working capital loans might be a solution.

Bad PR.

Customers are your lifeblood, but if your company is attacked in the press, business will dry up fast.

You’ll need to quickly craft counter messaging that can be disseminated through advertising, or better yet, hire a crisis PR firm to help you weather the challenge.

Neither of these options are cheap however, and both PR and advertising require up-front payment.

A personal loan for business might be what you need.

Recovering From Disaster, Quickly

It’s always advised to have both backup plans for the various disasters that unfold, and cash on reserve to help handle them quickly.

But no one can plan for everything that could possibly go wrong, and as we all know, having money stashed away for a rainy day is easier said than done.

Fortunately, there are a lot of lending options out there that could potentially get you the cash you need fast, and in terms that you can hopefully find some comfort in.

Need help in your research?

Check out our simple online form to get started.

See Business Lenders

Dustin Clendenen Finance Journalist

Dustin Clendenen is an LA-based screenwriter, editor, and all-around storyteller.

He spends most of his time thinking about the “Big Picture” and obsessing over its details.

Follow his musings on Twitter.

Recommended for Business Loans
Lendio
Lending Express

Important Disclosures. Please Read Carefully.

Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. Lendgenius.com is not a lender or lending partner and does not make loan or credit decisions. Lendgenius.com connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. Lendgenius.com does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. Lendgenius.com receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless, Lendgenius.com’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where Lendgenius.com does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing Lendgenius.com and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize Lendgenius.com to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Lender’s or Lending Partner’s Disclosure of Terms.

The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. Lendgenius.com has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.