How to Start Looking for a Same Day Business Loan
Sometimes, your business needs funding, and you cannot wait a week for the loan approval process. Although we have numerous alternative sources of funding today, only a handful of them can provide funds with 24-hours of application. Conventional bank loans and business lines of credit can take between one to three months. However, same-day business loan options can give the entrepreneur access to instant cash that can fuel their business growth.
photo/ Michael Jarmoluk via pixabay
Why do businesses approach alternative lenders for same day loans?
When you need money in less than a day, your best bet are the alternative sources of loans including the revolving lines of credit for businesses. Although these sources typically fund the new, high-risk, small business or startup, you can convince these alternative lenders to lend cash to your large enterprise with good business credit scores and a strong history of loan repayments.
- An interesting study by Harvard Business School shows that most alternative lenders have a complete set of loan applications online. You can access their site and fill out the forms on your smartphone or desktop within 30-minutes or less. The study also highlights that it takes close to 25-hours to complete an application for a traditional bank loan.
- Same-day business loans have become an everyday transaction for small and large enterprises. While banks have an average approval rate of 13%, alternative lenders approve 64% of the applications from business owners. The approval rate of revolving lines of credit is much higher than bank loans and short-term small-business loans.
. Irrespective of the levels of risk involved in the loan approval process, alternative lending requires considerably less paperwork. Additionally, the borrower has more flexibility while choosing repayment methods with revolving business lines of credit.
However, you must never forget that the speed comes at the cost of annual interest rates and processing fees.
What are a few sure ways of getting same-day business funds?
As a result, most businesses prefer opting for revolving lines of credit when they are in need of same day business loans. The features and qualifying criteria of business lines of credit will depend upon the company you approach for the loan, but here are the different types of lines of credit your business can benefit from right now –
Business lines of credit – You can think of it as a revolving capital akin to a credit card. You can directly access cash using the card, and you can experience low APRs compared to personal credit cards. It is one of the saving graces for businesses with bad credit.
Business credit cards – They are not the same as business lines of credit. When you need to pay for emergency equipment servicing or cover similar costs, your business credit card will come in handy. It offers an adequate cash flow cushion. It is not a secure line of credit, and it may provide cash back and rewards points like some personal credit cards.
Business charge cards – These are very similar to business credit cards. The charge cards include cash backs and rewards. The most significant advantage is it has no spending limit in spite of requiring no collateral. However, you need to pay the outstanding bill of a business charge card in full every month.
When you are looking for instant cash, you should be ready to embrace certain levels of risk. To minimize the risk associated with borrowing, you should always read the fine print of every credit union and the private lender.
Author: Charlie Brown
