At some point or another, most companies will find themselves in a situation where they need a fast business loan. Maybe a pipe bursts on your premises and you need it fixed quickly. Perhaps an acquisition opportunity presents itself but needs to be acted on immediately. Whatever your reason for needing a short-term business loan, there are practical steps you can take to get the best possible deal.

In most cases, needing a fast business loan isn’t the consequence of poor preparation or incompetent planning. Unexpected costs can appear at any time and affect all types of business, large and small. What really matters is how we react to resolve these situations when they do crop up.

The problem is, it can be difficult to secure small business loans in any situation, let alone when you need one quickly. This can lead to people feeling panicked and making rash decisions that aren’t always in the best interest of their business. In the rush to secure a fast business loan, some business owners feel pressured into accepting extortionate interest rates or uncompetitive payment terms.

If you do find yourself in need of a fast business loan, then it’s important to consider all the available options. In this short guide, we’ll walk you through exactly how to get a fast business loan at the best possible rates.

Analyze Your Needs

The first step to getting a fast business loan is to analyze your needs. How much do you need to borrow? How long do you need it for? Do you intend to pay it off weekly or monthly? Many businesses finance their short-term costs using a classic loan. But if you don’t analyze your needs first then you may end up taking out too much and overpaying on interest unnecessarily.

Of course, the opposite can happen too. You may go through the entire loan application process, only to find out that you haven’t secured enough. You might have calculated your current needs but not thought about cash flow you’ll require in the coming months. In this case, you’ll have to spend precious time making an additional application or negotiating a new deal with the lender. So, it’s worth investing a little time upfront to accurately assess your needs so you can get the right deal.

Identify Finance Options

Once you know exactly what type of business loan you need, it’s time to identify your finance options. Search online for banks and lenders that offer fast business loans with competitive rates. Talk to other business owners or financial advisors about their experiences. In the past, the big banks weren’t willing to offer fast loans unless they were secured against future annual revenue or large premises. However, these days, some are more open to considering small to medium-sized enterprises.

Still, many large banks have long and complex application processes which can delay you receiving the money. So, depending on your business situation, you may also want to consider alternative options. Funding from specialist small business lenders can be quicker and easier to secure, with a higher approval rate too. Some can even process your application the same business day so that you receive your loan in as little as 24 hours.

Consider Short Term Loans

If you need a fast business loan, then it may be a good idea to apply for a short-term one. It’s generally much easier to secure a loan if the lender is confident it’ll be paid back quickly. Long-term loans also involve a lot more paperwork which can delay the entire process even more.

When considering business loans, it’s important to choose an option with realistic repayment terms. Although short-term loans have high approval rates, that doesn’t matter if you can’t pay them back in time. So, if you do need a longer payment plan then it’s better to be honest with yourself and your lender up front.

Alternative Options

When time is of the essence, there are several alternative options to a loan too. It’s possible to secure a completely different solution, by establishing business lines of credit or getting approved for a credit card. Lines of credit can usually be set up in a few days and then reversed once they’re no longer needed. Credit cards are equally fast, just be sure to check whether they’ll impact your personal credit score.

A merchant cash advance may be another suitable option. Rather than loans, these are advances paid in lieu of future sales. If your customers pay you using credit or debit cards, then the repayments can be deducted automatically. This makes it an easy option for peace of mind since you don’t need to think about how to pay it back.

Planning for the Future

A fast business loan can get you out of an unexpected situation, but it’s important to plan for the future. How will you make the repayments on the loan? Can you put procedures in place that’ll help to avoid needing one in future? Securing a quick loan is fine as a one-off solution but shouldn’t be relied upon as a continual source of finance. So, learn from your current situation and devise a plan to avoid requiring one again in future. This will help you to avoid the stress of loan applications as well as paying more interest than you need.

How We Can Help

Strategic Capital offers numerous business funding programs to small business owners across the nation. Transparency, innovation, and expertise are the driving factors behind everything we do.

With a talented team of advisors, a plethora of funding partners, and the best technology available -we go above and beyond to help our clients receive their capital rapidly with the industry’s most competitive repayment options and interest rates. We want to break speed records, not bank accounts.

Upon submitting your application, it’s reviewed by a dedicated Capital Advisor. We generate the best rates and terms at lightning speed through our funding matrix and robust lender network. Yep… it’s that simple. Apply online here.

Checking for pre-approval will not affect your credit score.