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When you need cash quickly, a fast business loan can get you the funding you need as soon as a business day. Keep in mind that while fast business lenders can have a quick turnaround time, they may come with less favorable terms such as higher interest rates, shorter repayment periods or higher lending standards. Here’s where to find and the pros and cons to consider for small business lenders. 

Online lenders

Online lenders offer some of the fastest approval times for business loans. These lenders require minimal documentation and use software to streamline the approval process, sometimes within 48 hours of applying, or even same-day funding. The entire application can be completed online and within minutes, and is often available in all 50 states. On the downside, online loans may have less favorable terms, such as short, aggressive repayment periods, higher interest rates, and less personal customer support compared to traditional banks.

Pros

• Fastest funding option
• More lenient qualification requirements
• Use funds for almost any purpose

Cons

• Less favorable loan terms — often only a few months
• Higher borrowing costs
• Limited personal interaction and support

Who it’s best for

Financing through online lenders may be best for startups, businesses with limited credit history or business owners with bad credit. Online lenders typically have streamlined application processes and less stringent approval requirements. You could be eligible for some lenders with a minimum credit score of 550, six months in business and annual revenue of at least $50,000.

Merchant cash advance companies

If the majority of your transactions happen via debt or credit cards, then a merchant cash advance (MCA) can get you funding quickly. Like invoice factoring, you can get a cash advance in exchange for future transactions – specifically, future credit and debit card sales. The lender will extend a loan based on your past sale amounts, and thus don’t typically have credit requirements, and often carry 90 percent approval rates. However, MCA factor rates and fees tend to be quite high, and repayments are often on a daily or weekly basis. 

Pros

• Fast funding
• No credit requirements
• Approval rates of up to 90 percent

Cons

• Very high fees
• Doesn’t add to credit history
• Daily or weekly repayments

Who it’s best for

MCAs work best if you have limited or bad credit and conduct a good chunk of your sales via credit or debt cards, and if you don’t otherwise qualify for other loans. Keep in mind that the loan repayment period will be short and aggressive, and that the fees will be much greater than a traditional or online loan. You also risk incurring late fees or penalties if you can’t make payments due to slow sales or otherwise.

Traditional lenders

While traditional lenders, banks and credit unions often have a longer underwriting process with stricter loan requirements than online lenders, you may be able to get some loans quickly.  PNC Bank, for example, can fund loans in one to five business days. If you’re an established customer at the lender and have borrowed from them before, you may be able to get funds more quickly based on customer loyalty and the information they have on hand. 

Pros

Cons

Who it’s best for

Traditional lenders usually require businesses to be established — often at least two years old — with good or excellent credit and at least $250,000 in annual revenue. If the business has an existing relationship with the lender, such as a business bank account, this can increase the likelihood of approval and speed of funding. 

Fast business loan alternatives

You don’t necessarily need a fast business loan to get cash quickly. Alternative options include grants, bootstrapping and more.

Learn more

What to look for in a fast business lender

While you may need fast business funding, taking the time to research the most reputable fast business lender can pay off. After determining which loans and terms best fit your lending needs, you can evaluate each lender by its application process, customer service, underwriting requirements and funding speed. Once you’ve found the right lender, responsibly managing your fast business loan is key to avoiding default and penalties.

The best fast business lenders should have:

• Good customer reviews on sites like Trustpilot
• A soft credit check to prequalify and avoid lowering your credit score
• Competitive interest rates
• A clear and understandable approval process
• No fees or other costs hidden in fine print

Bottom line

Fast small business loans can be a great way to get the financing you need quickly. Since every lender has pros and cons, you’ll want to consider each lender’s requirements and your business’s needs and eligibility. Once you gather any necessary documentation and apply, you could receive funds within one to three days if approved.

Frequently asked questions

• How fast can you receive a business loan?
  

  It’s not unusual for online lenders to grant a business loan within a few hours of application submission and funding as soon as 24 to 48 hours after an application has been submitted. Traditional lenders may take a few weeks.

• Can you get a fast business loan for a startup?
  

  Yes, online lenders are known to offer startup business loans. These loans typically fund quickly and have less stringent qualifications and lending requirements. A business line of credit is another quick funding option for startups. Even startups with a minimal credit history may be eligible through online lenders.

• What is the quickest way to get a business loan?
  

  The quickest way to get a business loan is to work with a lender who offers fast business loans. These lenders can typically approve and fund a loan in as little as one to two business days. Online lenders usually offer the fastest lending times. If you prefer to work with a traditional lender, you can speed up the process by knowing the eligibility requirements and having everything you need for the application in advance.