When you need cash quickly, a fast business loan can be the way to go. Depending on the lender, the loan and your credit history, you can get funds in as little as 48 hours. Some online lenders can provide funding in as little as a day, and even traditional lenders are speeding up their disbursement to less than two weeks.

When applying for a fast business loan, there are a few ways to speed up the process. from picking the right lender to making sure you have your documentation in order. Here’s what you need to know about average fast business loan approval speeds.

How long does it take to get a fast business loan?

How long it takes to get a fast business loan depends on the lender. Most lenders can fund your business loan within three to five business days, so you can expect the average funding speed to be within a week. Some lenders that offer fast business loans can deposit funds to your business bank account within 24 to 48 hours of an approved application. The fastest lenders tend to be online.

For fast business loans, expect a simple application process, such as an online or one-page application that doesn’t require much documentation.

Business loan speed by lender

Different lenders will have different underwriting processes and different processing times due to their rules and standards. Certain lenders can sometimes disburse funds extremely quickly – online banks, for example, often have an automated application and approved process that can get you a business loan with 48 hours. Traditional banks, on the other hand, may take a few days to a week.

How can you speed up the small business loan process?

To ensure the small business loan process remains fast, you’ll want to make sure that you match the lender’s requirements for applying. Lenders typically have set requirements for minimum time in business, credit score and annual revenue. You’ll also want to take care to upload the exact documents the lender requests.

Here’s a general overview of the application process, how fast it can go and what you need.

Step 1: Applying

Depending on the lender, it may take less than thirty minutes to apply for a loan. But this assumes you have prepared ahead of time. If not, this portion of the application process can be the most grueling.

Fast lenders may still require important documents and information, such as your business plan, profit and loss statements, tax returns and bank statements. Gather these before you get started to move swiftly through the process.

Before you start an application, explore the types of fast business loans available to you. It’s never one-size-fits-all with funding, and there are plenty of options that are both fast and flexible.

The documents you need to apply include:

• Business information
• Owner details
• Business financial statements
• Personal finances
• Collateral
• Personal guarantee

If you want to speed up the application process, you can:

• Go with an online lender. Online applications can be filled out in minutes.
• Apply early in the week. While some lenders may work over the weekend, giving yourself enough business days can mean you get the loan within the week.
• Have your documents ready. Failing to submit your documents on time, or searching through your files for paperwork, can slow you down.

Step 2: Underwriting

Underwriting involves checking your business’s financial records and creditworthiness. It may also involve digging into each owner’s credit history and assessing your collateral, if applicable. This may be done by a human, but online lenders may use computer software to quickly go through the information you submit. Some lenders advertise near-instant funding decisions powered by their software.

For short-term business loans, like invoice financing, a lender may simply need access to your bookkeeping software. For other loans, an underwriter will need a variety of documents.

To help the underwriting process move swiftly:

• Keep in contact with the lender. Don’t let questions from your underwriter go unanswered for too long, or you’ll slow down the process.
• Apply for smaller loan amounts. Lenders will spend more time underwriting large loans.
• Have a good credit score. Lenders can skip or streamline the manual underwriting process if you have a solid score.

Step 3: Approval

The typical business loan from a bank or credit union can take weeks or months to process. Fast business loans, on the other hand, may be funded within a week of submitting an application. Some lenders are able to assess and underwrite loans in a matter of hours and fund them within a day.

This isn’t a guarantee, however. Most lenders will still take a day or two to process your business loan application and come to a funding decision.

To speed up the approval process, you can:

• Keep in contact with the lender. When approval happens, you’ll have to sign off on the final loan documents. Keep an eye on your inbox.
• Pick the right loan and lender. Some lenders are quicker than others. Online lenders will often have a turnaround time of one or two days. SBA loans, on the other hand, can take weeks for approval.
• Be an established customer with your lender. If your lender has all of your business details already, they may streamline your application and disburse your funds more quickly.

Step 4: Funding

Once your loan is approved, your lender will release the funds, often in the form of a direct deposit to your bank or a check.

While funding is the final step, you should plan to wait a day or two even for the fastest business loans. The lender will have to approve the funds release, and the bank will take time to approve the funds in your account, especially if it’s a large amount.

To help get your funding faster:

• Opt for direct deposit. This means you’ll get the funds more quickly than a check.
• Have your distribution method ready. Be sure to have a bank account set up to receive the funds, and that the lender has the information before the disbursement begins.

The bottom line

Speed may be a big factor, but it should not be your only concern when choosing a small business loan. A quick loan isn’t worth the speed if your business can’t handle the repayment. Take a little extra time to compare options, including alternatives to fast business loans, and find the best interest rate before signing an agreement.

Frequently asked questions

• How fast can you get approved for a business loan?
  

  You can typically get approved for a fast business loan in as little as a week and sometimes as fast as 24 hours.

• How long does it take for a small business loan to be approved?
  

  It depends on the lender and type of loan you apply for. Online lenders offer fast business loans that can be funded within 24 hours. Banks and credit unions may take a week or longer. SBA loans can take anywhere from 30 to 90 days from the application being submitted.

• Is it better to go with a fast loan or a slower loan?
  

  Determining whether a fast loan or slow loan is best really depends on your businesses’ financial needs and goals. If you’re in a cash crunch and require money quickly to keep operating, pay bills, salaries or some other critical need, then a fast loan can be a good choice. However, if you’re not in a rush, then a slower loan may be less expensive and offer a more competitive interest rate.

• Are fast business loans more risky?
  

  It’s not unusual for fast business loans to come with short repayment periods, high fees and other borrowing costs, which can make them difficult to repay. This can be a risk, because if you fall behind on payments or fail to repay the debt entirely as it will impact your businesses’ borrowing track record.