Online business loans can help small business owners get funding if they need fast access to cash. Unlike a traditional loan from a bank, you can be approved for a loan in days, and sometimes minutes.
Some of the most practical reasons to request a loan include:
- Moving or expanding an existing location.
- Hiring more staff.
- Purchasing equipment.
- Buying additional inventory.
While some of these issues you can plan and budget for, others might crop up unexpectedly, resulting in a need for an emergency loan.
Let’s review some common ways to get fast access to funding, and help you decide which option might be best for your company.
For Fast Business Loans, Consider a Term Loan
Term loans function much the same as a car loan or home mortgage. They can keep you from dipping into cash reserves when an urgent need arises, such as buying a piece of equipment.
There are several different types of term loans to choose from, and you can request a loan though the Small Business Administration, or a variety of alternative lenders. Loan decisions can be made in as little as 48 hours, making them perfect for an immediate need. Once you have the cash in hand, you make payments to the lender on a monthly, or even weekly, basis.
Most term loans fall into the range of $25,000 to $500,000, and the repayment terms range from one to five years.
Looking for Easy Business Loans? Consider a Short-Term Option
Like term loans, short-term business loans can help if you need a quick cash infusion. One difference is that the repayment window tends to be shorter, typically less than two years.
Bad credit won’t prevent you from getting a short-term business loan. There is also less paperwork to fill out, and you can borrow a substantial amount of cash quickly, with loans ranging from $2,500 to $250,000.
The drawback is that short-term loans tend to have higher APRs than a term loan, starting at 14% and going up from there. And, as we mentioned earlier, you will have a shorter window of time to pay back the loan.
Business Credit Cards: Perfect for an Instant Business Line of Credit
Another way to tap into instant business funding is through a business credit card. Credit card companies cater to a variety of needs, so depending what you’re looking for you can choose from cards:
- With no annual fees.
- That offer cash back.
- With a sign-up bonus.
We sorted through the many options to find the best of the best, including:
- Spark Classic from Capital One.
- Chase Ink Business Cash Credit Card.
- American Express Blue for Business.
For Quick Business Loans, Check Out BlueVine
Another alternative to a traditional bank loan is BlueVine, which offers short-term financing through:
- BlueVine FlexCredit.
- Invoice Factoring.
BlueVine FlexCredit provides a business line of credit, ranging from $5,000 to $100,000. As you repay the money, it automatically replenishes your line of credit. There’s an origination fee of 1.50%, and the APR ranges from 16 to 62%.
Invoice Factoring is intended to provide a short-term cash infusion for B2B companies. It works by converting unpaid invoices into cold hard cash. You are paid for invoices that are due within one to 12 weeks – receiving 85% of the invoice upfront. Once the customer pays, you get the remaining balance, less BlueVine’s fees. The repayment terms are quick – within one to 12 weeks. The APRs can also be a bit steep, ranging from 17-60%.
Lending Club Offers Fast Business Funding Through Peer-to-Peer Lending
Lending Club is a peer-to-peer lending company that provides fast access to cash with much lower rates than other quick loan options. The average interest rate is just under 14%. However, rates can dip as low as 6% for highly-qualified borrowers.
To start, you simply complete an online request. Lending Club’s technology crunches the numbers and determines your credit rating and interest rate. If you qualify, you can receive several offers within minutes. Loans are funded by investors, who run the gamut from individuals to institutions.
Kabbage, Perfect for Emergency Business Loans
Another popular option is Kabbage, which provides loans ranging from $2,000 and $150,000 as a line of credit. Once you draw on your credit line, it then converts to an installment loan, payable in either six- or 12-month installments.
Interest rates are reasonable, with borrowers charged flat rates ranging between 1.5% and 10% of the outstanding balance. Each month, you pay an equal portion of your loan principal, plus a fee. Borrowers can pay early without any penalties.
Are PayPal Loans a Thing? Yes – Meet PayPal Working Capital
If you process transactions through PayPal, you can request a PayPal Working Capital loan. To qualify, you must have:
- A PayPal Premier or Business account for at least three months.
- Process at least $15,000 annually in PayPal sales.
The amount you can borrow is determined by your PayPal sales history. If approved, you can borrow up to 25% of your PayPal-processed sales for the past 12 months. Borrowers are charged a set fee, based on PayPal sales history, the amount of the loan, and the repayment percentage. There are no other fees or interest charges.
If approved, borrowers receive the funds in their PayPal account in minutes. They can opt to automatically pay a percentage of each sale toward the loan, or make manual payments. There is no penalty for early payment.
How Do I Choose the Right Fast Funding Option?
Only about half of all small businesses with employees make it to the five-year mark according to the Small Business Administration. The ability to quickly access cash when you need it can be one way of ensuring your company survives – and thrives.
If you feel overwhelmed by all the options, never fear. LendGenius is here to help you connect with a lender quickly and easily. To get started, just fill out our simple online form.