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What You Need to Get Approved for a Fast Business Loan

When your company is under major financial pressure, you need relief quickly. A fast business loan helps you come up with the cash necessary to relieve the pressure, as well as healthily grow your business.

 

5 Fast Business Loans to Help Your Company Grow

If your business needs cash fast, AllFi is here to help. These five fast business loans help you find the capital you need quickly–in some cases as soon as one business day:

 

1. SBA Loans

Small Business Administration (SBA) loans are a go-to source for startups and growing companies. Although these are not exactly fast loans, they are backed by the U.S. government. This gives many lenders an incentive to take a risk on you.

With an SBA loan, your business can receive up to $5 million with repayment terms up to 25 years. Interest rates for SBA loans generally run between 6% to 13%.

This is a great financial resource if you don’t need immediate cash. Expect the process to take more than 30 days when applying for an SBA loan.

 

SBA Express Loans

An exception to the lengthy SBA loan process is the SBA Express Program, which allows you to borrow up to $350,000 for your small business. Most applicants receive an answer within 36 hours.

 

What You Need to Get Approved for an SBA Loan

If you decide to apply for a loan from the Small Business Administration, these are some things you’ll need to do and submit:

  • Meet the Requirements

    • FICO Score of 680 or higher
    • Have been in business for over two years
    • Annual revenue of at least $100,000
    • No past government debt defaults or delinquencies
    • 10% down payment if using the loan to buy another business
    • Two years of ongoing profitability preferred
    • Collateral is a major plus
    • Be a for-profit company operating in the U.S.
    • Have already made personal financial investments in your business
    • Prove you operate under public policy goals, and create and retain local jobs
    • Have a valid plan that describes how you plan to use the funds
  • Documentation Needed for an SBA Loan

    • SBA Loan Application
    • Borrower’s Info Form
    • Federal or State-Issued Identification or Driver’s License
    • Bank Statements
    • Voided Business Check
    • Personal Tax Returns
    • Business Tax Returns
    • Profit & Loss Statements
    • Balance Sheet
    • Business Lease
    • Business Debt Schedule
    • Business Plan

2. Equipment Financing & Leasing Loans

This type of loan is very popular in the construction industry and others that require expensive equipment to operate. It allows you to secure funding to finance or lease business-related equipment.

This is a fast business loan that puts cash in your bank account within 24-48 hours.  Some business equipment costs tens of thousands of dollars to replace. Equipment financing and leasing loans help you cover these expenses with as little downtime as possible. That means you’re covered if, for example, your tractor gives out for the last time, or a power surge kills your restaurant equipment.

AllFi equipment loan interest rates range from 9% to 36%. Loans are available for up to 70% of the forced liquidation value (FLV) of the equipment.

 

What You Need to Get Approved for an Equipment Financing & Leasing Loan

With inventory equipment, your existing equipment gives you the power to get a fast business loan, or structured as a revolving line of credit for your company. That way, much like a merchant cash advance, you use and pay back only what you need and only when you need it.

To get a loan against and for commercial equipment, you need these items:

  • Appraisals
  • Site inspections
  • Extensive financial analysis
  • At least $500,000 worth of inventory

3. Merchant Cash Advance

Small business owners sometimes find themselves looking at great opportunities. Yet, they still need cash to purchase equipment, inventory, or take care of payroll until that projected revenue makes it to the bank.

A merchant cash advance puts cash in your hands fast. With a merchant cash advance, you sell all or some of your company’s projected revenue to a business cash advance lender. Within 1-2 days, you receive a lump sum to handle your emergency, growth, or operating costs.

This is an effective financial resource for a small business owner in need of a fast business loan. AllFi works with newly established companies, as well as those owned by credit-challenged small business owners.

An advance is not a loan and won’t affect your credit report. Instead of concentrating on your credit scores, the lender puts more emphasis on the historical cash flow of your business.

You have two repayment options with an AllFi merchant cash advance:

  1. A fixed amount is deducted from the business’ bank account every day until the balance is zero.
  2. A fixed percentage is withheld from scheduled future credit card receipts until the debt is paid off.

Once approved, the advance is in your business bank account within 24-48 hours. You can use this advance to grow your startup, market your new project, or hire new staff members.

 

What You Need to Get Approved for a Merchant Cash Advance

Applying for a merchant cash advance is a simple, streamlined process that gets you the cash you need within 1-2 business days.

These are the things you need to qualify for this type of fast business loan:

  • Completed merchant cash advance application
  • Four most recent business banking statements
  • Three most recent monthly credit card processing statements (not required, but helpful)

4. Invoice Factoring

Business-to-business (B2B) brands have an advantage when it comes to finding capital. If you’re a credit-handicapped small business owner that needs cash in a hurry, this is the fast business loan for you.  Your customers’ outstanding invoices are invaluable tools worth instant cash because the creditworthiness of your customer is the biggest consideration in invoice factoring.

Factoring allows you to receive cash in exchange for your unpaid invoices. AllFi provides up to 90% of the total value of the B2B invoices your customers have yet to pay. The lender takes care of all of the accounts receivable and billing tasks while you go back to taking care of your business.

After the invoice is paid, the loan amount is deducted, along with finance fees. The remainder typically arrives in your business bank account within a couple of days.

 

What Are Some Benefits of Invoice Loan Factoring?

This is a fast business loan that can be paid off quickly.  Often, small businesses have outstanding invoices that could cover all upcoming expenses, but some expenses can’t wait.

Some small business owners turn to invoice financing for quick access to capital. This allows you to borrow, for example, $10,000, which can be paid off as soon as that one high-end customer pays their $15,000 invoice. After the debt is paid, you will have just over $4,000 after fees.

Applications for invoice finance loans are fairly simple to complete compared to other business loan products. That’s because there are no underwriters. Avoiding the underwriting process gets you approved for the loan much faster with less paperwork and hassle.

You can sell the factoring company all or some of your unpaid invoices. Either way, you may qualify for up to 90% of the invoices you choose to sell to the lender.

Keep in mind that your factoring lender takes over the invoicing and collections process. They contact your customers about outstanding invoices and take care of the receivables. For entrepreneurs getting their companies off the ground, this can be a major plus.

Others prefer the non-notification method, which allows the lender to factor invoices in your name without alerting your customers. AllFi offers this feature.

Invoice factoring takes the creditworthiness of your customer into account more than yours.

For example, if you’re doing business with a local “big name” corporation or a national brand that’s been in business for years, your chances of getting approved are outstanding!

This type of fast business loan is only effective if your customer is reliable. If the business financing company believes the customer will pay what they owe you, they will likely approve you for the loan, even if you have no or bad credit.

 

What You Need to Get Approved for an Invoice Factoring Loan

Selling your invoices is a way to get cash in your business account in as little as 48 hours. When you’re ready to apply, these are the documents you’ll need:

  • Credit Score
  • Voided Business Check
  • Bank Statements
  • Unpaid Invoices
  • Federal or State-Issued Identification or Driver’s License

5. Business Line of Credit

Although a business line of credit is not exactly a loan, it is a reliable source of funding for the future. The difference between a business line of credit and a loan is how and when you use it.

When a lender approves you for a business line of credit, you are not obligated to use it. This is simply a credit line that allows you to use up to the approved amount as you see fit and you only owe what you use.

That means that if you’re issued a credit line of $100,000, you have access to that amount. Let’s say you don’t need it for six months. When you need to use your credit, it’s still available (some restrictions apply).

Use $35,000 to purchase a new company vehicle, and this is what you’re left with:

  • Make monthly payments on the $35,000 plus interest until the debt is paid off
  • You now have about $65,000 still available to repair the company’s roof or invest in building material
  • Even though your credit limit is $100,000 in total, you only owe the $35,000 you used so far

There are two other benefits of lines of credit in comparison to other fast business loans:

  1. Because you only owe what you use, you only pay interest on what you use as well, which saves you money, unlike other funding sources.
  2. If you need to access any portion of the remaining credit line, it’s just a check or debit card away, without having to apply for another loan.

What You Need to Get Approved for a Business Line of Credit

Business lines of credit are flexible financial resources for companies like yours. You decide how long you take to repay the loan and your payments are always affordable.

Ready to apply? Here’s what you’ll need to get for a business line of credit:

  • Asset(s) You Can Use to Secure the Credit Line for Your Business

    • Invoices
    • Account Receivables
    • Personal assets
    • Inventory
    • Equipment
    • Machinery
    • Real Estate
  • Documentation Needed for a Line of Credit for Your Business

    • Credit Score
    • Bank Statements
    • Voided Business Check
    • Unpaid Invoices
    • Federal or State-Issued Identification or Driver’s License

Fast Business Loans for Good, Bad and Ugly Credit

Small businesses suffer financial challenges from launch to maturity. Your business may need a loan for operational costs, marketing, an ad campaign, emergency building repairs, buying commercial vehicles, or to sponsor an important business event.

When you need cash quickly for any reason, a fast business loan helps. This is a safe alternative to draining your retirement account or personal savings. These financial choices can lead to long-term debt. That’s never good for your business’ financial security.

AllFi Solutions offers all five of these fast cash business loans as well as many others. Get the funding you need to handle that emergency, take care of operational costs, or fund your big project until your client pays.

Don’t let the need for cash take your business down. Get the help you need from AllFi Solutions Small Business Funders today!

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