Fast Business Loans
You need money fast and you’ve discovered many lenders offering fast business loans on the internet. Before you jump in with a lender, are you sure you understand what a fast business loan means? After we define fast business loans, let’s explore their advantages and disadvantages. Only then will you know this type of business loan is right for you.
What Is a Fast Business Loan?
In a nutshell, a fast business loan is a loan from a non-traditional lender like Shield Funding that can make a lending decision in a matter of hours. Then your loan can be funded in a matter of days and sometimes as fast as the same day you apply. Think you can try this with a bank? With regulations, approval processes, and layers of employees, you’ll be lucky to receive your business funding in weeks. And it may be longer. At Shield Funding we make the process of securing immediate funding fast and easy and you can get started online.
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500 Min. Credit Score
- $8,000 Min. Monthly Revenue
Fast business loans are for short term business needs. All businesses encounter the unexpected. Equipment breakdowns and urgent building repairs require quick access to cash or credit to keep your business up and running. Missing production targets or failing to deliver on time can turn into losses of customers and damaged reputations.
These loans can also help your business grow by helping you take on new opportunities you cannot afford with current cash flows. The extra cash will allow you to expand your production levels or broaden service offerings to take on new clients or tackle new markets.
A fast money loan helps by providing the needed funds to address problems, avoid disruptions, and accept new opportunities.
Maybe you’re concerned about past credit problems. Perhaps a low credit score is keeping you from obtaining the funds you need. Since private lenders provide private business loans, they can focus on the borrower’s current situation and successes. Have you been able to get a bank to set aside your past problems?
A fast business loan is not right for every situation, nor can it solve all your urgent business needs. It is important to have a clear understanding of how this type of business financing can help and how one differs from traditional loan products. Knowing can help you decide if a fast business loan is right for you.
Fast Business Loan Advantages
Speed can make or break a business opportunity, so access to funds in a short period of time is important. Receiving a loan approval and funding in days rather than weeks or even months is a major advantage of a fast business loan.
A fast business lender is adept at analyzing your situation and making a decision quickly. The lender understands that new opportunities may not materialize often, so being able to jump in at the right moment is vital. Once a decision has been made, they waste no time providing access to the funds.
Are you concerned about a less-than-perfect credit score or negative marks on your credit history? These factors don’t usually come into play during a fast business lender’s review of your application as they also can provide bad credit business loans in the same amount of time. These lenders focus on your time in business and your ability to generate revenue.
If you meet these criteria, it’s easier to qualify for a fast business loan than traditional business loans from banks. Lenders with significant experience in this area know which aspects of businesses are most important when evaluating an applicant. Credit history is not always a good predictor of who is and isn’t a good applicant. They know that time in business and current financials tell a better story about the applicant.
No collateral? No worries. Our fast business loans are also unsecured business loans and do not require collateral to obtain funding. This can be helpful to businesses with no real property but need additional funds to capitalize on new opportunities.
All these advantages may help you decide that a fast business loan is right for you, but don’t forget to look at the other side of the coin. To give you a clear picture of fast business loans, let’s look at some of the disadvantages next.
Fast Business Loan Disadvantages
Fast access to cash comes with some drawbacks. Fast business loans generally have higher interest rates than what banks offer for similar products.
Banks take a broader look at loan applicants and review past credit history as well as current business financials. This comprehensive look tends to weed out many acceptable applicants. This means less risk to the bank. Fast business lenders may take a chance on applicants with past issues who now run successful, established businesses. This translates into more risk to the fast business lender. To compensate for some of this risk, they charge higher interest rates.
Fast business loans tend to have very short terms from a few months to less than a couple of years. It may be possible to jump on a new opportunity, but turning enough of a profit to pay off the loan within the term may be harder to predict.
You don’t want one business loan to lead into refinancing or new loans to pay off the old ones. It’s important to consider whether you’ll be able to repay the loan on time before entering into a loan agreement. Don’t get caught in a cycle of constantly renewing the same debt.
Both the short terms of the loans and higher risk may equate to more frequent repayment terms. Having a weekly or even a daily repayment schedule isn’t unusual for fast business loans, particularly when the term is very short. Make sure you have enough cash flow to make the required payments on the lender’s schedule before deciding that a fast business loan is right for you.
After considering the advantages and disadvantages, it’s time to determine if a fast business loan fits your situation.
Is a Fast Business Loan Right for You?
Fast business loans work best when you need funds quickly to take advantage of an opportunity with high growth and profit potential.
If you need to expand your production capabilities to fulfill orders for a new large client, a fast business loan can help. Moving to a larger space, enhancing existing processes, or hiring new employees all require funds. Having fast access to cash may be the best answer to increasing output so you can win over that new client.
Are equipment issues affecting your output? Are you barely fulfilling orders while some of your equipment is in need of repair? A fast business loan can provide the cash you need to get all your equipment running again. Are you falling behind the competition with outdated technology?
Quick access to cash to invest in upgrades will help you keep up your competitors. Upgrades may help you increase output or speed to market, allowing your business to soar above the rest.
Do you have too many orders and not enough staff? Fast business loans can provide funding to hire the employees you need. Funding payroll with quick access to cash may help you generate enough revenue from new business in a short period of time. Then, once the loan is paid off, this new revenue stream should be enough to support ongoing payroll as your business continues to grow.
Not all these situations may match your particular needs. But with these examples, you should have a good idea of whether a fast business loan can help you run or expand your own business.
At Shield Funding, we offer some of the fastest business loans around. You can get a decision on your loan application in a matter of hours and have cash in your bank account in just a couple days.
For more information on our business loans, get in touch! We’ll help you figure out the fastest business funding option and best overall loan for your business.