Same Day Business Loans
Shield Funding has been providing fast business loans for over a decade. We understand that sometimes you need cash fast, and we can help. Whether you need it within the next week or absolutely as fast as possible, we’ll work with you to get you the money you need.
Traditional business bank loans have some serious disadvantages. One of those disadvantages is that they’re slow. It can take a very long time to get your cash—and if you need it fast, you’re out of luck.
We’re an alternative lender, so we can get you money faster than a bank. And that has some big benefits. The process is very fast and extremely flexible so apply online and see how much you are approved for immediate business funding. 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.
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.
Why Traditional Business Loans Are So Slow
How long does it take to get a business loan from a bank? It can take up to three months to go from filling out an application to getting a deposit.
When you’re running a business, that’s an incredibly long time. That can be debilitating if you haven’t planned on your loan taking a long time and you’re in a hurry.
Why does it take so long to get a business loan from a bank?
Because banks are extremely careful. After the 2008 recession, banks are wary of lending money to people who might not be able to pay it back. So they spend a lot of time asking questions and checking up on your loan risk.
That contributes to the first reason banks are so slow:
- A Long Application Process
You’ll need to provide a lot of information to start your business loan application with a bank.
For example, they might ask you for a detailed plan on how you’ll use the money you’re borrowing. The intended use of your cash might also determine which loans you can qualify for. If you’re going to use the money for day-to-day purchases, you might only be allowed to apply for a working capital loan. If you need a new delivery truck, the bank may limit you to an equipment loan.
But there’s more paperwork, too. You might need to present a business plan to show the bank you know how to run a business. And if you don’t have one written up, that can significantly add to the time it takes to apply for a loan.
It also takes the bank quite a while to look over all of your application materials. They go through a lot of applications and they give each one a detailed look. Combine that with the tons of financial paperwork you have to submit (which we’ll discuss below) and you get an application process that can take a couple months.
- Detailed Credit History Checks
When you apply for a business loan, a bank will take a very detailed look at your credit history. They’ll look at your credit score, and if it’s less than excellent, you might be denied immediately. They’ll look at your payment history to see if you’ve been on time with your payments. They’ll see if you already have a lot of debt.
In many cases, they’ll perform these credit checks on both your personal and business credit reports.
There’s no standard credit requirement for business loans. But if your score is less than 600, it could be hard to qualify for a business loan from a bank. If you want to get a good interest rate, you’ll need to provide an excellent score of 700 or higher.
In some cases, it’s worth taking the time to improve your credit before you apply for a loan. That can take months on its own, potentially adding even more time to the process.
- Lots of Financial Paperwork
Banks want to know exactly how well your business is doing. You’ll need balance sheets, cash flow and income statements, business and personal tax returns, business licenses, and other paperwork before the process is done.
Unless you have all of your paperwork in perfect order, it could take a while to track it all down and organize it. And if you’re missing something during the application process, the bank will ask for it later, further delaying your application.
And if your business isn’t doing well, there’s a good chance you’ll be denied the loan. Which makes it difficult if you need a loan to get your business back on track.
- Documentation for Collateral
Because banks are so wary of making business loans, they often ask for collateral. That means you have to put up an asset to back the loan—and if you default, the bank will take it.
You can use a wide variety of things as collateral: buildings, vehicles, equipment, sometimes even invoices. But you need a valuable asset to back the loan. This can prove problematic for some businesses. Some business owners put up personal assets for their business loan collateral, which can be a huge risk.
And, of course, you’ll need documentation for that collateral.
Why Are Alternative Business Loans So Much Faster?
Alternative lenders like us can provide you with much faster loans. So fast, in fact, that you can often get approved on the same day you apply. In some cases, you might even get the cash on the same day (though it usually takes a couple days).
Why are we able to offer same-day business loans? Because we’re a lot more flexible.
Banks have complicated formulas that look at the age of your business, your credit rating, assets, and more factors to determine how much of a default risk you are. We take a broader view of your business and make a more personal determination. And we’re agile enough to do this quickly with much less paperwork.
Of course, we have our own requirements. But we’re not tied down by the same regulations that banks are, and we can weather more risk because we don’t have the same expenses.
In short, we’re smaller, more nimble, and better equipped to take a holistic view of your business.
Can You Really Get a Same-Day Business Loan?
Yes, you absolutely can! If you meet our requirements, you can get funding within a couple days. And if you have everything ready when you apply, it could even be the same day. Here’s what you need:
- Our one-page application form
- Proof that you’ve been in business for two months (or a year, for some types of loans)
- Proof that you bring in at least $8,000 (or $10,000) in monthly revenue
- Two to four months of company receipts
With that documentation, you can get a same-day business loan.
Why Not Take a Payday Loan?
When you need cash fast, a payday loan might seem like a good idea. Some lenders offer cash on the spot with little documentation required. Seems like a good solution to your problem, right?
Don’t be fooled. These loans are absolutely terrible.
Payday loans usually come with APRs of 400% or more. And while they’re generally for small amounts, some of these lenders make bigger loans as well. That means you could be paying thousands of dollars in interest if you can’t pay the loan back right away.
Our same-day business loans, by contrast, have interest rates as low as 5%. Even our bad credit business loans start at 12% interest.
Don’t get ripped off by a payday lender. Take a same-day business loan from a reputable alternative lender and save thousands of dollars.
Why Not Use a Credit Card?
So a payday loan is a bad idea. What about a credit card? You already have one and you can use it immediately. You’ve gone through the application process and you don’t need to gather documentation.
These are certainly advantages. But credit cards also have very high interest rates. Not nearly as high as payday loans—but they can still be in the range of 30% or more. If you have to charge something expensive, that adds up fast.
And putting a big expense on your credit card can be hazardous for your credit. If you can’t pay it back right away, you could be carrying debt, altering your debt-to-income ratio and your total balances. Both of these can drop your credit score.
For emergency purchases under $1,000 or so, a credit card might not be a bad idea. But if you need more than that—or you have very little cash on hand—a same-day business loan is a safer idea.
What Can You Use a Same-Day Business Loan For?
A business loan from Shield Funding can be used for anything related to your business. Here are a couple reasons you might want a same day business loan:
Equipment Repairs and Replacements
When your equipment breaks, you have to get it fixed fast. In many cases, a few hundred dollars will do the job. But if you have large, expensive, complicated machinery, you could be looking at thousands of dollars in repair costs.
The more complicated your equipment, the more likely you are to need it replaced quickly. A broken washing machine at a laundromat can wait a couple days—but a piece of manufacturing equipment or a tractor-trailer needs to be fixed immediately.
In some cases, repair is impossible, and the equipment will need to be replaced. Again, you might be able to cover this cost out of pocket. But if not, a same-day business loan can save the day.
Short-term business loans are especially beneficial for these types of expenses, as they reduce interest costs and don’t require you to commit to paying a monthly installment for years.
Business owners come up against all sorts of problems. Maybe there was flooding in your town. Or a cold snap hit before you were ready and your pipes burst. Maybe you’ve fallen ill and need cash to bring in an experienced manager to take over for a while.
Same-day business loans mean you don’t have to wait a long time (or resort to predatory payday lenders) to solve these problems. You get cash fast and you can use it to get your business back on track right away.
And because business loans come with interest rates can be much lower than credit cards, you won’t go into debt just keeping your business afloat.
Taking Advantage of an Opportunity
Small business owners are very enterprising—when they see an opportunity, they want to take advantage. Maybe a competitor is selling their business. Or your supplier is having a sale.
Whatever the case, you have a limited time to make the most of it.
You know that this expenditure will make you money in the long run, but you need to pay for it now. A same-day business loan makes this outlay possible. And because you’re making a purchase that helps you make money, you’ll be able to pay it back in a reasonable amount of time.
Don’t Fall Into a High-Interest-Rate Trap
When something bad happens or you’re excited about taking advantage of an opportunity, you want to act fast. You don’t want to wait around for a loan. Even waiting a day or two can seem like a long time—which is why some business owners resort to credit cards or predatory lenders.
Don’t fall for it. Take a same day business loan from a reputable lender to get the money you need quickly without paying hundreds or thousands of extra dollars in interest.
Want to learn more about how we can help you with a same-day business loan? Or to get information on any of our other business financing products? Get in touch today and we’ll chat about it!