How can you get a fast business loan? Small business owners often do not have the time to wait to be funded through a traditional bank loan. In fact, small business owners sometimes find the entire loan application process so aggravating that they give up completely.
The interest rates for a bank loans can range from 8 to 18 percent, but the rates from some online lenders can exceed 30 percent: a huge difference.
This is the reality: if you need to obtain a business loan faster than a bank can offer, you are inevitably going to pay more for it. However, does this mean that it is a bad idea? That’s for you to decide, including by doing an analysis on return on investment. Provided the loan will lead to growth in your business, then the interest you will need to pay to finance your business will make good financial sense (that is, if the growth is expected to provide more profits than the cost of the loan).
Three ways to get money quickly when your business needs it
If you need money quickly for your business, there are other ways to get it besides a traditional bank loan or an online business loan. This could give you the money you need to make a quick, smart investment, jump aboard that great business idea, or even save your company.
Business Credit Cards
While most people don’t consider credit cards as a proper option for a business loan, if they’re used properly, they can offer you business financing when you need it. If you have good credit, you may want to consider a business credit card that you keep separate from your personal finances, and make it a convenient source of financing.
If you have a balance on the credit card, make sure that you pay it off in full each month. By doing this, the money will always be there, and additionally, it helps to increase your company’s credit score. An average APR for credit cards is 16 percent, so this is a lot less than what you’d be charged by internet lenders (though higher than a traditional bank loan).
It is true that you are likely limited on the amount of credit you have. However, remember that many credit cards have an introductory zero percent interest rate along with rewards like frequent flyer points and cash back with purchases. With careful planning and calculations, you could use this to your advantage.
If you find you don’t have enough cash flow because customers are slow to pay you for your products or services, you could consider invoice discounting or factoring. This may be a particularly worthwhile option for businesses that have long invoice cycles, and work business-to-business. With invoice financing, you get paid now instead of waiting for customers to pay their invoice.
Friends or family
This may not be a desirable option, but it is a possible one. It’s true that no one wants to ask money from family or friends for financial help. It can be embarrassing. What’s more, if something happens and you can’t pay back the loan, it could easily ruin the friendship and or your relationship with your family. However, in certain circumstances, it might be possible to do this. You’d have to be able to absolutely guarantee that you can pay back the loan, and obviously, the person would be someone you can trust and who has faith in you and your company. In this situation, asking them for a loan may be the quickest way to get a business loan when it is needed.
Getting a fast business loan
If none of these three options apply to you, a fast business loan from the team at FundingPro may be the answer. We are here to help – take a few minutes to fill out an online enquiry and a senior credit adviser will call you to discuss the best finance for your business.
FundingPro can provide business loans for any purpose including unsecured working capital loans, equipment and vehicle finance, invoice discounting & factoring, property finance and finance for any other business purpose.
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