Small business owners run into emergencies sometimes. These emergency situations require quick cash to overcome. They can be anything from repairing a shop roof to recovering from a store fire. This post discusses how to get a loan in 24 hours, so your business can recover fast.
9 Ways to Get a Loan in 24 Hours for Your Business
There are various ways to get a loan for your business by the next day. These loans tend to be more expensive than other types of working capital solutions. Fast money isn’t cheap money but some loan programs were designed to help companies succeed. You’ll find that some are designed to be short-term financial solutions, while others allow your business room for growth.
Let’s discuss some of these various types of loans created for a company in the midst of an emergency situation:
1. Emergency Installment Loan in 24 Hours
Often called short term business loans, emergency installment loans require a soft credit check. These lending options are simple to qualify for if you have good credit.
When searching for an emergency installment loan, compare your lending options by analyzing the following factors:
- Term of the loan
- Interest rate
- Origination fee
- Loan limit amount
- Early repayment penalties
Convert the above terms to an APR % so you can have an apples-to-apples comparison of costs. Then you can make an intelligent decision on what is best for you
2. Real-Estate Finance
If your business assets include real estate or you personally own real estate, collateralizing it is a good way to come up with capital to solve your company’s emergency situation. You can find a lender to process the loan fast.
However, your home is your most valuable asset. So, protect it by following these guidelines:
- Don’t borrow more than you need. This is your home that you’re pledging as collateral. Borrowing too much could lead to losing it to foreclosure because you can’t make the payments. Just take what you need to cover the emergency, so you can recover quickly.
- Borrow for a short term. The last thing you need is another 30-year mortgage to worry about while trying to grow your business. Remember, the longer the loan term, the more interest you’ll pay over time. That’s money you could have invested in your company.
- Get a fixed interest rate. A variable interest rate may sound attractive in the beginning. But remember when the housing bubble burst and how high the rates jumped for people with these types of home mortgage loans. With a fixed rate loan, there are no surprises. You always know what your house note will be from month to month.
3. Credit Card Cash Advance Loan in 24 Hours
Most credit card companies make it very easy to get a cash advance these days. Take a quick trip to an ATM and you’re strapped with cash for your business disaster. The amount you can borrow against your credit card is determined by the company itself. But you can definitely have the cash in your hands within 24 hours.
However, money-wise entrepreneurs will tell you, there are negatives to credit card cash advances. They would never use this form of financial “support” unless it’s a dire emergency. The interest rates are very high, and there are generally expensive fees involved. But sometimes, business emergencies call for expensive solutions.
If you’re thinking about getting a credit card cash advance, think about the following:
- Can you just use your credit card? Is this an emergency you can pay for with a credit card, or do you have to have cash? Remember the costs of cash advances are much higher than using credit cards to pay for goods and services.
- Do you have other options? This is an expensive way of borrowing money. Making late payments will seriously hurt your personal credit, which negatively affects your business credit. Be sure this is the best… and possibly the only… borrowing option for you.
- Don’t exceed your limit. These expensive “loans” get even costlier if you go over the limit set for cash advances by your credit card company. You may be able to get more than you planned out of that ATM. But is paying the over-the-limit price next month really worth it?
- Calculate the costs. Oftentimes, small business owners are so quick to get a loan, that the costs simply don’t matter… that is, until the bill comes. Repaying an unaffordable loan will hurt you personally, which means your business will also suffer. Sit down and add up all the costs… fees, interest, over-the-limit penalties… and make sure this is the best borrowing option for you.
4. Merchant Cash Advance Loan in 24 Hours
A business cash advance is much different than getting one from your credit card company. This small business funding option is not a typical loan. Instead, you are selling your future accounts receivables to the merchant cash advance company at a discounted rate.
You agree to sell the “lender” a specified amount from receivables you expect to collect in the future at a discount rate specified in your contract. That means you can use future income to secure cash, without taking out a loan. Instead of paying for a high-interest loan, you allow the lender to take a portion (usually a fixed percentage) of the upcoming receivables as fee for extending the loan.
This is commonly used for future credit card receipts. Payments are made by allowing bank account deductions from daily receipts. Or the lender can deduct fixed, small percentages from future receivables. Either way, your business can receive the lump sum you need to cover that emergency in just 24 hours.
Here’s how the process works:
- Complete the merchant cash advance application
- Your financial profile is reviewed by a business funding specialist
- Most fast cash merchant lenders will contact you within 3-5 hours
- If approved, the lender will send you an offer with the amount and terms of the cash advance for your company
- After all the documents are signed, your cash will arrive in your company’s bank account within 24 hours
5. Business Lines of Credit in 24 Hours
Getting a line of credit for your business is a flexible way to deal with emergencies. These business loans are quick, with many having 1-day turnarounds. The minimum monthly payments are more affordable than many other lending options.
And if things turn around quickly, you can pay these credit lines off early. You’ll save on interest. And there are no prepayment penalties.
A business line of credit is much more than a loan. It’s a way to secure your company against emergencies that may arise. Once approved, you don’t have to cash out immediately. Instead, the money is sitting in an account, ready for you when you need it.
If you don’t need it, don’t use it. You never have to pay for what you don’t use. These are just some of the emergency’s companies use lines of credit to fund:
- Special lucrative projects
- Unexpected debt
- Real estate needs
- Staffing emergencies
- Business growth
- Equipment or inventory purchase
- Marketing campaigns
- Lucrative business opportunity
6. Luxury Asset Loan in 24 Hours
Do you own high-end assets, either personal or business? If so, you can get a quick loan using your property as collateral. With a luxury asset loan, you can receive up to 70% of the appraised value of the goods, without having to pawn your possessions for cash.
The asset is appraised by a financing solution company. Once approved by a Luxury Asset Specialist, it’s stored in their licensed, secure facility. Both the storage facility and your asset are insured to give you peace of mind.
Some of the luxury assets commonly used to secure 24-hour loans include:
- Antique & luxury cars
- Thoroughbred horses
- Expensive gems & jewelry
- Stamp & coin collections
- Aircraft, yachts and boats
- Precious metals
- Rare books
7. Inventory Financing in 24 Hours
What is inventory financing? This form of lending allows companies to use inventory as collateral for securing small business loans and revolving lines of credit. When structured as a loan, you make monthly payments until the debt is paid off.
If offered as a business line of credit, you only borrow what you need when you need it. Until then, the cash is sitting there available to you as a funding option for building your business or handling emergencies. You never pay for what you don’t use.
Most fast cash inventory lenders allow you to borrow up to 70% of the FLV (forced liquidation value). Expect a lot of extensive paperwork, appraisals, inspections, and financial analysis when borrowing money using this asset-based lending solution.
Some of the common reasons small business owners apply for inventory financing include:
- Buy new inventory
- Survive seasonal cash flow downfalls
- Necessary building upgrades or repairs
- Contracting emergencies
- Purchasing equipment and supplies for upcoming project
- Bounce back from a natural disaster, such as wildfire fire or hurricane
- Create a nest egg of working capital for your business
- Lucrative marketing or advertising campaign opportunity
8. Purchase Order Financing in 24 Hours
Are you holding a purchase order from a reliable customer that will convert to serious cash after it’s paid? You can turn it into cash now, so you have what you need to fund your emergency.
Most purchase orders aren’t even sent to accounts payable until the entire order is complete. And even then, some good customers are known to take their time paying them.
If you need cash now, you can get it within 24 hours by selling off your purchase order. Most lenders will give you up to 75% of the value of the PO.
Your personal and business credit aren’t the main deciding factors for PO financing. Instead, the lender will analyze the credit worthiness and strength of the company behind the PO.
That’s what makes this business funding solution such a resourceful option for business owners with bad credit or no credit and especially startups with stable customer bases.
9. Invoice Financing in 24 Hours
Does your business have outstanding invoices from customers known to pay… yet, they tend to pay slow? You can convert those unpaid invoices into cash for your business emergency and growth. Instead of getting a loan, sell these invoices to a lender and convert them into cash within 24 hours.
Typically, invoice financing lenders will loan you up to 90% of the value of your outstanding invoices. They purchase them for you at a discount rate. That means they now own them and take responsibility for administrative duties related to sending statements, collection payments and reporting the customer to collections if needed.
Invoice financing gives you the cash you need now to handle business emergencies or simply start on a new project. Invest your precious time into running your business and taking care of your customers, instead of handling loads of paperwork and chasing payments.
Where to Get a Business Loan in 24 Hours
There are many reasons why businesses need access to emergency capital. You may have an advertising or marketing plan that needs to be launched quickly. Or you may have a big project coming up that requires you to hire extra staff and a large inventory purchase. Whatever the issue is, you can have cash in your business account within 24 hours.
AllFi Solutions helps businesses by providing access to funds when needed. As a full-service business financial solutions provider, we cater to our clients with a broad range of products. We are industry leaders who want to see your company succeed. Call us at (855) 807-4944 or contact an AllFi Solutions underwriter online for more details on how to get a loan in 24 hours for your business now.