Whether it’s taking advantage of an unexpected opportunity (such as acquiring discounted inventory or expanding into a new market), closing a cash flow gap or handling an emergency repair, having access to fast business funding can truly be a lifesaver.
Being able to tap into extra funding can make a huge difference to any business, providing you with extra funds for those moments when you need to take immediate action.
But what are the most important things you need to know about fast business financing? In this article we will answer some key questions – From eligibility requirements to amounts, interest rates, etc. for such funds.
What is fast business financing?
Fast business finance refers to a variety of financial instruments designed to provide businesses with Quick access to Capital – For example, with National Business Capital, it can take as little as 24 hours or as long as a week, depending on the loan type and your creditworthiness.
Some types of fast business financing include:
- business credit line – A business line of credit is a great way to recycle extra funds, meaning you can take the amount you need up to a certain limit, pay it back and borrow again without having to re-apply for a new loan.
- short term business loan – Term loans are one of the most popular types of quick business financing, giving you quick access to funds with repayment terms ranging from 6 to 18 months. They are useful if you need an immediate return on investment from your financing.
- income-based financing – With revenue-based financing, you can also leverage future sales of your business to quickly obtain funding for your business. This fast and flexible solution is ideal if you need cash in the short term and don’t have a fixed monthly payment.
- Equipment financing – If you need quick access to funds to purchase equipment, such as machinery or vehicles for your business, equipment financing is another great option for growing your business. You’ll need to show a FICO score of over 700, and an annual income of $500,000.
- small business loans – Small business loans are one of the most popular options for getting extra money quickly. They provide you with a sum of money that can be used for any business purpose, from acquiring a new business to opening a new brick-and-mortar store or purchasing equipment.
How quickly can I receive funds? Banks and Alternative Lenders
When it comes to quick business financing, it’s important to remember that traditional lenders such as banks don’t typically offer this type of financing solution.
Their loan qualification standards are much stricter than online or non-traditional lenders and require extensive documentation that can take weeks to review and approve (or not!).
On the other hand, non-traditional lenders, such as Specialty Finance Group National Business Capital, can provide funding more quickly by offering a streamlined application process and more flexible eligibility criteria. Let’s compare the two:
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How much can I borrow with fast business finance?
So, if you’re looking to get business funding fast, just how much can you borrow? The answer will depend on the type of business loan you apply for, your creditworthiness, the lender you choose, and your collateral.
Let’s look at some examples:
- short term business loan – From USD 2,500 to USD 500,000
- income-based financing – From USD 5,000 to USD 500,000
- business credit line – From US$10,000 to US$2 million
- Invoice financing – Up to 85% or 90% of the outstanding invoice value
If you’re applying for fast business finance, how long you’ve been in business is also important – many lenders and financial institutions will want your business to have been operating for at least a year.
Generally speaking, the longer your business history, the more likely you are to qualify Higher loan amount. Strong, stable income and profitability can increase the amount you are eligible to borrow.
What are the benefits of fast business financing?
If you’re looking to get business funding quickly, there are several advantages you can take advantage of. Some of these include:
- Get capital quickly – They allow you to receive funds very quickly, which can be crucial if you are faced with an emergency expense or unexpected opportunity but don’t have the cash on hand.
- Simplified application process – Instead of spending days and hours at the bank filling out reams of paperwork, you can provide alternative lenders with fewer documents – and applications can be completed in minutes.
- Automatic approval – Specialist financial groups such as National Business Capital use automated underwriting systems to quickly assess applications, which allows us to make decisions faster.
- Flexible requirements – Quick business financing options often have more flexible qualification requirements than options offered by traditional lenders. They provide you with the opportunity to obtain funding even if your credit score is less than perfect.
- cash flow relief – If you need immediate cash flow relief to meet short-term financial challenges (such as paying wages), fast business financing is a great way to achieve this.
- Minimum collateral requirements – Many quick financing options, such as business credit cards and some short-term loans, do not require collateral. This reduces your risk if you don’t have any significant assets to pledge.
What are the terms and rates for fast business financing?
Interest rates for different types of fast business finance can vary widely – here are some examples:
- short term loan – Range from 8% to 80%
- income-based financing – Factor ratios from 1.1 to 1.5
- business credit line – Annual interest rate 7% to 25%
- Invoice financing – Varies from 1% to 3% of monthly invoice amount
Repayment terms can also vary widely depending on the lender, the type of loan, and the borrower’s credit profile. However, in most cases we will usually consider repayment terms between 6 months and 5 years.
Qualify for NBC Express Business Financing
If you want to qualify for fast business financing, look no further than National Business Capital. With more than $2 billion raised since 2007, multiple awards and a team of experienced business financial advisors, we have everything you need to find the best financing option for your project.
Are you ready to get started? Apply here.