At the same time, opportunities may present themselves, and quick decisions may need to be made in order to capitalize on a competitor’s shortcomings or mistakes.
That’s one of the ways in which newer small businesses gain market share. On top of all that, regular operations, marketing efforts, up-staffing, and expansion all need to happen quickly.
A hallmark of small businesses today is their nimbleness and flexibility, which is a major competitive advantage they have over larger, more established players in most industries.
Because time is money, and speed matters, many small business owners have a need for quick business funding, that puts money in their bank account as soon as possible.
What Defines Quick Business Funding?
Quick business funding isn’t formally defined among lenders or the small business community, but can be differentiated from “ordinary” business funding on the basis of how long it takes to obtain.
When it comes to most kinds of small business funding, including small business loans, lines of credit, and similar, there are usually two sources or categories of lenders from which a small business owner can choose: banks and private lenders.
Private lenders have become extremely popular in recent years, especially for their customer service, approachability, and speed. They are usually synonymous with quick business funding, offering unsecured loans and credit products that can close in hours to days.
By contrast, banks tend to be slow and aren’t especially customer-oriented, especially when it comes to small business lending. They see lending to small businesses as a risk to begin with, and often only offer secured forms of small business funding that require collateral.
They set fairly high requirements to qualify for this funding, too. The net result is a lengthy application and approval process that can drag on for weeks or even a month or more.
That’s generally considered too slow by many modern small business owners, so they turn to private lenders for quick business funding.
Different Types of Quick Business Funding Available
There are several different types of quick business funding available from most private lenders.
While every lender is different, and their product or service offerings will naturally vary, below are the most common forms of small business funding that are offered, and a bit about how they work and compare to one another.
- Small business loans, providing cash as a lump sum, that is then repaid with interest over the term of the loan, usually a few years
- Short-term business loans, which are like small business loans but are repaid in a much shorter term, usually months to a year at most, with more frequent repayments
- Business lines of credit, operating much like a credit card account, serving as a revolving source of borrowing and repayment up to the approved credit limit
- Merchant cash advances, which are not formally loans, but actually a pre-selling of your future debit and credit card sales at a discount, in exchange for a lump sum of cash up front, repaid out of sales revenue dynamically rather than on a calendar basis
Of these common forms of small business funding, small business loans and merchant cash advances are generally the easiest to qualify for quickly, and with the most generous qualification requirements that private lenders have to offer.
When many small business owners think of quick business funding, these are the products that come to mind.
Of course, if you are approved for a business line of credit, then you can borrow instantly whenever you need (provided your outstanding balance is below the total credit limit), but those are harder to obtain, with more stringent requirements.
Secured vs. Unsecured Small Business Funding
Much of the speed associated with quick small business funding comes down to the unsecured nature of the funding offered by private lenders, as compared to the secured funding options offered by banks.
The requirements for collateral with secured loans and credit products involve a lot of risk for small businesses, in exchange for a slightly lower interest rate. But setting that aside, in terms of speed, it adds significant amounts of time to the lending process.
Collateral requires valuation, and often this can mean physical inspection by a trained professional (depending on the collateral in question). Scheduling and sending an assessor to your office or factory location is not something that will happen overnight.
The general application and approval process is already longer when it comes to banks, as they simply move with a slower, more plodding pace than many small business owners can tolerate.
They also tend to require more documents, do more credit and other checks, and are much more cautious about lending, since they are so risk-averse and see small business lending as inherently risky.
Adding collateral valuation into the mix is a bridge too far for many small business owners. Unsecured small business funding from private lenders is inherently much faster to obtain.
With no collateral valuation steps in the process, there are no external forces adding lengthy periods of time to the process.
On top of that, most private lenders who offer quick small business funding are built for convenience, speed, and service, and fully understand the needs of small businesses to access quick business funding…well, quickly.
This means a streamlined application process, dedicated loan management team, fast approvals, minimal documentation requirements, and fast funding from all the top private lenders.
When speed matters, private lenders and unsecured small business funding are really the only way to go.
Quick Business Funding from BizFly Funding
When you need quick business funding, and time is of the essence, you want to choose a top-quality, reliable private lender who understands the unique needs of the small business community.
We highly encourage you to consider BizFly Funding as your source for small business funding.
BizFly Funding is one of the leading private lenders in the US, and offers a full portfolio of quick business funding options, including small business loans, short-term business loans, business lines of credit, merchant cash advances, and several other products.
They also feature a speedy application and approval process, with no collateral requirements, and funding that can be delivered within 1 business day to most approved customers.
Approval requirements for quick business loans and credit products at BizFly Funding are very reasonable, meaning even businesses with bad credit can obtain the funding they need to operate, grow, and succeed.
To find out more or to start the application process online, visit BizFly Funding at https://bizflyfunding.com.
Frequently Asked Questions about Quick Business Funding
There are several different types of small business funding options, including varieties of business loans, which are relatively easy to obtain.
The exact requirements at each lender will vary, and most small business owners will have better odds of approval at a private lender as opposed to a bank.
Typically, if credit is a concern or stumbling block for you in obtaining a loan, then bad credit business loans are likely the best choice for your business.
If your credit is fair to good, then an ordinary unsecured small business loan, short-term small business loan, or merchant cash advance may be easiest for you to obtain.
Traditionally, it has been nearly impossible to get a business loan of any kind with a credit score as low as 500.
Most banks require credit scores of upwards of 700, 750, or even more in order to qualify.
Quick business funding from private lenders, on the other hand, is readily available for businesses with bad credit, including credit scores as low as 500.
Every private lender will have different minimum qualification requirements for their small business loans, so you may have to shop around and find a lender who accepts applicants with your particular credit score.
Generally, searching for bad credit business loans or similar terms will help you find private lenders online who offer these kinds of loans and credit products.
In order to obtain quick business funding, it’s best to seek out unsecured small business funding products, including unsecured small business loans.
These are most readily available from private, non-bank lenders, and do not have any collateral requirements.
Collateral generally adds a significant extra period of time to any loan application and approval, as the collateral must be valued and assessed by the lender.
Banks almost always offer secured products, where collateral is required. T
herefore, the fastest way to get cash for your business when you need a quick business loan is to seek unsecured funding from a private lender.
As with most loans and credit products, quick small business loans will have interest rates that vary significantly from lender to lender – especially between secured and unsecured loans.
These rates will also vary based on the amount to be borrowed, credit score of the borrower, business fundamentals, revenue of the business, and other factors.
In general, unsecured small business loans usually have their interest rates expressed in a range, and the exact interest rate for a particular applicant will be determined during the application and approval process.
Most of these ranges are on the order of around 9% to as high as 50% (with higher rates usually reserved for the riskiest customers, and the lowest rates going to the least risky customers).
For businesses who need capital fast, choosing a small business loan from a private lender is one of the fastest ways to get funding.
The exact timing will vary by vendor and borrower details, of course. Generally speaking, though, most private lenders offering quick business loans can take you from initial application to loan agreement in a matter of days, compared to weeks or even a month at banks.
The best private lenders can get you funded within 1 business day following completion and signage of the loan agreement.
That’s why so many small businesses in need of fast funding choose quick business loans from private lenders.
