Should You Consider Cash Advance Lenders When You Need Emergency Loans for your Business


Minyang Jiang

Financial emergencies happen, sometimes when you least expect it. Suddenly, your business is in a financial crisis and the only way to stay afloat is to gain access to funding fast. But traditional lending avenues take time, and often require a pristine credit score. When you need an emergency loan, time may not be an option.

The good news is there are fast, emergency loans and alternative funding solutions that can stop your ship from sinking. But finding the best one can be stressful if you don’t fully understand the terms. The choice you make could help your business survive and thrive or it could create more financial strain.

Understanding the basics of how to raise working capital fast and all the options available will help you identify the best funding solution for your business and navigate through the storm with ease.

What do You Need Emergency Financing For?

Financial emergencies in business can happen quickly. Perhaps a few of your credit customers are late paying their bills. Maybe cash-flow is falling short because of a slump in sales or a seasonal decline.

The need for fast cash can be dire, like a delivery vehicle needing to be immediately repaired, or urgent, like acquiring a new client, but lacking the capital to purchase supplies to fill their order.

Falling behind financially threatens your business success in several ways:

  • Production and services are often compromised when a business is in a financial emergency.
  • Customer service be affected by a cutback back on employee hours and a slump in overall company morale.
  • You could lose experienced, valuable employees because of cutting back on their hours or concern over their job security.
  • Falling behind on your bills can affect your credit in the future.

Emergency Funding Options

There are a few fast, easy funding options when a business emergency strikes. Typically you should look to solutions that carry the least risk, have fast results and will get you through the crisis at hand without compromising your long-term success.

Hard Money Loans

According to, one option some business owners take for emergency funding is a Hard Money Loan, which can be considered a slightly risky approach to emergency funding. A Hard Money Loan does not look at your credit score, but is based completely on your collateral. In fact, the amount you can receive is typically based upon the value of the property you use as collateral and of course, this means you risk losing that property if you cannot make your payments.

Interest rates for Hard Money Loans are higher than on traditional business loans, because they are also riskier for the lender. Interest rates can be as high as 30 percent and most small businesses are required to pay as much as 8 percent in points. A balloon payment is also often required before the end of the loan term, which can be as short as 1-5 years.

Credit Cards

With zero percent interest offers and no requirement for collateral, using a credit card as a source of emergency loan funding may seem like the perfect solution. This can be a fast solution, but keep in mind that with it there is no separation from your personal and business finances. It is easy to overextend and end up with larger payments then anticipated, and if you fail to keep up with the payments it can negatively impact your credit score.

Credit cards also have lower limits than a typical small business loan or a Merchant Cash Advance, and may not provide adequate funding.

Merchant Cash Advances

According to Business News Daily, alternative funding is a solid solution for businesses in need of cash and that require the process to be quick and easy. Many are getting the funds they need through a Merchant Cash Advance.

The speed, availability and flexibility of this type of funding provide the financial infusion that allows business owners to handle any emergency and answers to their immediate needs without stressing about how they will afford monthly payments. Cash advance lenders can provide quick and easy access to the cash you need.

Why are they stress-free?

  • They are unsecured funding advances, so no collateral is required.
  • A Merchant Cash Advance is based on your volume of sales and the health of the business as a whole. Your credit score is not required.
  • Essentially, this is not a loan. You are getting an advance on your future revenue to use today. The money is paid back based upon a small, set percentage of your business’s daily credit card processing receipts. So, there are no fixed monthly payments, rather it is based upon the sales volume of your business as it ebbs and flows.
  • The decision for your merchant cash advance is typically made within two business days and your money can be in hand within 72 hours.

If you need emergency financing for your business, Credibly can help. Our fast, flexible capital solutions are tailored to your short-term needs and long-term goals. To get started, fill out our online prequalification request form. Submitting is free and easy and will not negatively impact your credit score.