While there are a lot of options out there, it is always ideal to choose one from among lending companies that offer the best fast business loans. Choosing the best means of getting the best rates and terms, and other exciting perks, too.
In the Economic Bulletin published online by the United States Small Business Administration – Office of Advocacy, it says, “Small businesses show strength in self-employment increases, proprietors’ income gains, job creation advances and births staying above deaths. Loan delinquency rates remain low, but small business loan demand is waning.”
This basically means that more and more small businesses are coming to life, providing jobs to the jobless, at the same time, helping the economy. According to the report, small firms or businesses have “accounted for 8.7 million net new private-sector jobs since 2005, or 62 percent of the total“.
Meanwhile, both larger “larger small firms (with 20-499 employees) and the larger large firms (with 1,000 or more employees) have been the main drivers of growth.”
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However, regardless of how small or big a business is, there is a chance that in one way or another, it may face financial challenges. And while some may get through it and succeed, others may fail.
While there are a lot of factors affecting a business’s failure, there are two most common reasons cited by experts. One has something to do with cash flow issues, and two have something to do with starting off with too little money.
As you can see, both have something to do with finances. Like in any business, no matter how small or big your firm maybe, ideally, you must have enough or more to cover all expense issues now and in the future. Otherwise, you may just face the worse.
Now, the good thing though is — reviving, rather, keeping a business up and running is not a hopeless case.
Thank goodness as in this day and age, businessmen have more options before they even file for bankruptcy or something like that.
One option is to apply for a business loan, which is tremendous. It definitely helps a lot to keep any business running and to ensure there is enough cash to keep it going.
Now, while there are countless business loan providers out there, particularly fast business loans, it is important to note that some loans are way different from fast small business loans. They do not only differ in terms of rates and repayment terms but that they also vary in terms of requirements set.
The thing about fast business loans is that it injects the cash you need into your small business to be able to overcome any financial challenges or in some cases, for expansion purposes.
Now, having said all that, today, we are going to share with you some of the companies that offer the best fast business loans. Remember, like in any other types of loan, shopping around and comparing rates and terms and features is important to be able to land with the best deal possible.
But before we head on to our list of best fast business loans provides, here’s a quick review on some important points that a borrower must know about fast or quick business loans:
- What is a fast business loan?
- How does fast business loans work?
- What are the different types of business loans?
- When to apply for a business loan?
WHAT IS A FAST BUSINESS LOAN?
True to what it’s called, a fast business loan is a type of loan that is readily available to any business person who needs cash to keep his or her business running. The loan may also be acquired for those who are just setting up a business — for their expenses and other business needs.
In addition, a fast business loan may also be used to expand a business, to renovate or buy replacements of equipment, or may also be used to float payroll for a month.
Whatever the reason is, a fast business loan is ideal for any business that needs quick funding. Contrary to a traditional loan, fast business loans can still offer you extra time and flexible terms to pay the loaned money back.
HOW DOES FAST BUSINESS LOANS WORK?
Now, borrowers need to learn a few more important things before acquiring a fast business loan. This has something to do with the following factors:
- APR
- Terms
- Types of Loans
APR
Similar to other loan types, a fast business loan does have two different kinds of APRs as well. One is fixed-rate, and the other is variable-rate.
While it is tempting to go with the lowest APR, which at first glance goes to fixed-rate, eventually, you’ll realize it may just cost you more. Compared to variable-rate, a fixed-rate, though may look like it’s lower, is fixed and won’t change. It does provide stability and peace of mind, but again, the risk is that you may end up paying more if the market changes.
Meanwhile, a variable-rate APR does change as the market changes. It may go low or high depending on the season.
So, in the end, it’s a matter of choosing between being at risk or being at peace.
Terms
Before committing to any fast business loan, it is important to learn and understand first the terms set by your loan provider.
When it comes to loan terms, the general rule applies — the longer the term is, the smaller your monthly payments will be, but that means paying off more. Meanwhile, when you choose a shorter-term that means paying high monthly fees but saving up a few bucks.
Types of Loans
Again, similar to any other loans, fast business loans come it two types — secured and unsecured loans.
On one hand, a secured loan requires some form of collateral, and the rate is usually lower.
On the other hand, an unsecured loan refers to a type of loan that does not require collateral. However, the APR is usually higher to help compensate for the loss should the borrower fail to pay off the loan.
Meanwhile, if you want to learn about how to particularly get a small business loan, we found this very informative video by Alex Berman. Here, Alex shares a lot of insightful and helpful tips on how to ensure approval of a small business loan.
WHAT ARE THE DIFFERENT TYPES OF BUSINESS LOANS?
Another important information that we thought every borrower must know before they even deal with a fast business loan is learning about the different types of business loans.
Yes, a while ago we mentioned about secured and unsecured loans, but business loans can be further defined as any of the following:
- Working Capital Loans
- Equipment Financing Loan
- Invoice Factoring Loans
Now, let’s know more about each of these —
Working Capital Loans
As the name implies, this particular type of business loan refers to the amount of money need to cover the everyday operating expenses of a business. This type of business loan can help businesses when it needs an extra boost in overall cash flow.
Furthermore, working capital loans are not meant for growing or improvements of a business, but rather for a business’s sustainability. This type of loan adds new capital to help maintain the daily operations especially when cash is very tight.
Of the three types of business loans, this is the most common one that most businesses use today.
Equipment Financing Loan
A business is not a business without proper equipment. Thus, it is important to invest in them, right?
An equipment financing loan exists to help provide a quick financial boost that businessmen need to jumpstart their businesses. This loan can be used, obviously, for purchasing equipment a business needs.
Invoice Factoring Loans
While this is not ideal for all business types, an invoice factoring loan is beneficial for companies that need immediate cash while their invoices are yet to be paid.
Unfortunately, in some instances, customers are unable to pay immediately, which may keep business hanging if it does not have funds. In this case, this particular type of business loan may be helpful.
WHEN TO APPLY FOR A BUSINESS LOAN?
Generally, a fast business loan is a popular way to help sustain business operations when the money is tight, or in some cases, it is used to acquire new equipment or use the loan for business growth opportunities.
BEST FAST BUSINESS LOANS PROVIDERS
So, now that you already know some of the most important details when it comes to fast business loans, it’s time for the real deal.
Below is our list of companies that provide the best fast business loans in the country today:
- Fundation
- Fundbox
- Kabbage
- OnDeck
- SmartBiz
| Bank | APR Range | Loan Amount | Minimum Credit Score |
| Fundation | 8%–30% | $20,000–$50,000 | 620 |
| Fundbox | 10.10 – 79.80% | Up to $100,000 | 500 |
| Kabbage | 24%–99% | $2,000–$250,000 | 560 |
| OnDeck | 9%–99% | $5,000–$50,000 | 600 |
| SmartBiz | 4.75%–7% | $3,000–$5,000,000 | 650 |
FUNDATION
As stated on their website, Fundation is a digital financial solutions provider that aligns its capabilities with those of its partners to be able to serve small and medium sized (SMB) business community.
The company’s mission is to help “empower small business economy by enabling banks, B2B vendors and suppliers and the other critical institutions that SMBs rely on.”
Headquartered in Reston, Virginia, Fundation is ideal for both budding and established businesses with fair or better credit scores that need a fast funding solution. Furthermore, it is more than ideal for those with an excellent credit score as they may be qualified for the lowest rate possible.
At Fundation, the credit requirements vary depending on the amount of loan. To be specific, for loans below $75,000, borrowers need a credit score of 620. AS with loans amounting to more than $75,000, the credit score requirements are up to 640.
Apart from the credit score requirements, you must also have a minimum of $200,000 in annual sales and at least three employees on the payroll to qualify. Furthermore, your record must not have late payments in the year before prior to your loan application or any bankruptcies, as well as foreclosures.
FUNDBOX
Fundbox is a fintech company that offers business lines of credit. The company was founded in 2013 and is based in San Francisco, California.
Fundbox is ideal for businesses that need to fill quickly a cash-flow gap as the company fund loans in as fast as the next business day upon approval of the business loan.
To qualify for a Fundbox fast business loan, the borrower must have a minimum credit score of 500. Yes, you read it right. It does require low credit as compared to other online lenders out there.
Furthermore, the company requires a minimum annual revenue of $50,000 and at least three months of invoicing history. Supported accounting software or business checking account is also required.
Unlike other online lenders, Fundbox does not require a personal guarantee for business lines of credit amounting to below $50,000, which means the borrower is not personally responsible for repayment in case the business fails to pay off the loan. Collateral is not required as well.
KABBAGE
Kabbage, Inc. or simply Kabbage is another popular online financial technology company that was founded in 2008 and is headquartered in Atlanta, Giorgia. The fintech company provides direct funding to small businesses as well as consumers through the use of an automated lending platform.
On its website, the company states that small businesses, in particular, choose Kabbage as it provides “tools to simplify the day-to-day cash flow concerns that every small business experiences.”
Apart from providing funding through a quick, easy, and convenient application process, the company also provides simple repayment terms, which makes it even more attractive to business loan borrowers.
One thing we noticed about Kabbage, and perhaps one of the things that set the company apart from other online lenders out there is that it does not require much paperwork or documentation, which is precisely one of the reasons also why the process is fast.
Now, to qualify for a Kabbage fast business loan, a borrower must be in the business for at least a year and must have at least $50,000 annual revenue.
Kabbage provides fast business loan amounting up to $250,000, and a revolving line of credit. It’s best for entrepreneurs who need serious funding for their businesses.
ONDECK
Launched in 2015 in Canada, OnDeck aims to “solve a major issue facing small businesses: efficient access to capital” by using “cutting-edge technology to evaluate businesses based on their actual performance, not solely business owners’ personal credit scores“.
Currently headquartered in New York, OnDeck is a well-known global online small business lending company.
What we particularly about the services provided by OnDeck is that it helps pair a borrower up to the right business loan or line of credit. So, if you are someone who’s not that sure whether to apply for a business loan or a line of credit, OnDeck will definitely help you figure out.
Being a veteran lender with experience in more than 700 industries, it is not surprising that the company is one of the best fast business loans provider in the country today.
To qualify for an OnDeck business loan or line of credit, the borrower must meet certain requirements like at least three years in business operation, a minimum of $250,000 in annual revenue, and must have an active business bank account.
Interested borrowers may apply online or over the phone. The company provides as much as $100,000 in a revolving line of credit. Funding is provided as fast as within 24-hours since the submission of the loan application.
OnDeck services all states across the country except South Dakota.
SMARTBIZ
Founded in 2009, SmartBiz is an online company that provides a service that has made the world of Small Business Administration (SBA) lending easier.
While it does not directly issue loans to borrowers, the company, through the use of technology, helps borrowers find the right lender in its network of preferred SBA bank lenders.
SmartBiz helps borrowers determine whether he or she is eligible for business from among its network in just a couple of minutes, which means, borrowers, get to save time and effort trying to do everything themselves.
Over the years, SmartBiz has become more popularly known for real estate needs. In fact, an SBA 7(a) loan from SmartBiz carries up to an 85% approval rate, needless to say, it comes with impressive APR rates, as well.
With regard to small business loan requirements, they’re quite stringent as compared to other lenders. The company requires a clean financial record and a FICO SBSS LiquidCredit score requirement of 150 that is in addition to traditional credit reporting.
Although it has a ton of hoops to get a business loan through SmartBiz, the high approval rate plus flexible terms makes it worth it.
FINAL THOUGHTS ON BEST FAST BUSINESS LOANS
When you open a business – whether it be small or big – you can really barely say if it’s going to succeed or not until it’s up and running. That means you have no idea as well when you can possibly earn back your investment.
Now, as businesses operate on a day-to-day basis, expenses pile up. While there are some who are able to make ends meet, some business owners may get into financial difficulty along the process.
When that happens, good thing is that businesses have an option to get a fast business loan.
By getting a business loan, it helps fill in whatever financial gap there is to help a business thrive. But take note also that business loans may also be used to expand a business if you think it’s time. You can also use it to buy equipment if need be.