Whether it’s to take advantage of unexpected opportunities (such as acquiring discounted inventory or expanding into a new market), bridging cash flow gaps, or handling emergency repairs, having access to quick business funding can truly be a life-saver.
Being able to tap into additional capital can make a world of difference for any business, providing you with extra funds for those moments that require immediate action.
But what are some of the most important things that you need to know about quick business funding? In this article, we are answering some key questions – from the eligibility requirements for this type of funding to amounts, interest rates, and more.
What Is Quick Business Funding?
Quick business funding refers to the variety of financial tools designed to provide businesses with fast access to capital – for example, with National Business Capital, it can take as little as 24 hours, up to a week depending on the type of loan and your creditworthiness.
Some types of quick business funding include:
- Business Line Of Credit – A business line of credit can be a great way to tap into extra funding on a revolving basis, meaning you can take as much as you need up to a certain limit, pay back, and borrow again without re-applying for a new loan.
- Short-Term Business Loans – Term loans are among the most popular types of quick business funding, allowing you to get speedy access to capital with repayment periods between 6 and 18 months. They are great if you need to see a near-immediate ROI from your financing.
- Revenue-Based Financing – With revenue-based financing, you can also get quick business funding by leveraging your business’ future sales. This fast and flexible solution is excellent if you need cash in the short term, all without fixed monthly payments.
- Equipment Financing – If you need fast access to capital to purchase equipment, such as machinery or vehicle for your business, equipment financing is another great option to grow your business. You will need to show a 700+ FICO Score, as well as $500k in annual revenue.
- Small Business Loans – Small business loans are among the most popular options for getting fast access to extra funds. They provide you with a lump sum of funds to use for any business purpose, from acquiring new businesses to opening new physical locations, or purchasing equipment.
How Fast Can I Receive The Funds? Banks vs. Alternative Lenders
When it comes to quick business funding, it’s important to keep in mind that traditional lenders, such as banks, don’t typically offer this type of financing solution.
Their loan qualification criteria is much more stringent than that of online or non-traditional lenders, and they require extensive documentation which can take weeks to be reviewed and approved (or not!).
On the other hand, non-traditional lenders, such as Specialty Finance Group National Business Capital, can speed up the provision of funds by offering a streamlined application process and more flexible qualification criteria. Let’s compare both:
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How Much Can I Borrow with Quick Business Funding?
So, exactly how much can you borrow if you are looking to get quick business funding? The answer will depend on the type of business loan you are applying for, your creditworthiness, your lender of choice, and your collateral.
Let’s take a look at some examples:
- Short-Term Business Loans – From $2,500 to $500,000
- Revenue-Based Financing – From $5,000 to $500,000
- Business Line of Credit – From $10,000 up to $2 million
- Invoice Financing – Up to 85% or 90% of the value of your outstanding invoices
Your time in business also matters if you are applying for quick business funding – many lenders and financial institutions prefer that your business has been operating for at least one year.
Generally speaking, the longer your operating history, the more likely you are going to qualify for higher loan amounts. Strong, consistent revenue and profitability can increase the amount you’re eligible to borrow.
What Are the Benefits of Quick Business Funding?
There are multiple benefits that you can take advantage of if you are looking to get quick business funding. Some of them include:
- Fast Access to Capital – They allow you to receive funds very quickly, which can be essential if you are facing urgent expenses or unexpected opportunities, but don’t have the cash on hand.
- Streamlined Application Process – Instead of taking days and hours to fill out extensive paperwork at the bank, you can expect to provide less documentation with an alternative lender – and the application can be completed in minutes.
- Automated Approvals – Specialty Finance Groups such as National Business Capital use an automated underwriting system to assess applications quickly, which allows us to make faster decisions.
- Flexible Requirements – Quick business funding options typically have more flexible qualification requirements compared to the options offered by traditional lenders. They give you the opportunity to get funding even if your credit score is less-than-perfect.
- Cash Flow Relief – If you need immediate cash flow relief to handle short-term financial challenges such as covering payroll, quick business funding is a great way to achieve that.
- Minimal Collateral Requirements – Many quick funding options, like 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 & Rates of Quick Business Funding?
Interest rates may vary highly between the different types of quick business funding – here are some examples:
- Short-Term Loans – Range from 8% to 80%
- Revenue-Based Financing – Factor rates from 1.1 to 1.5
- Business Line of Credit – From 7% to 25% APR
- Invoice Financing – Range from 1% to 3% of the invoice amount per month
Repayment terms can also vary widely depending on the lender, type of loan, and your creditworthiness as a borrower. However, in most cases, we are typically looking at repayment terms between 6 months and 5 years.
Qualifying for Quick Business Funding with NBC
If you want to qualify for quick business funding, look no further than National Business Capital. With $2+ billion financed since 2007, multiple awards, and an experienced team of Business Finance Advisors, we have everything you need to find the best financing options for your project.
Are you ready to get started? Apply here.
