If You Need a Quick Business Loan Consider These Options

2015-07-15

Jeffrey Bumbales

If you’re in business for yourself, there may be times when you’re in a position to cover last-minutes expenses. Whether these expenses include covering payroll, stocking up on much-needed inventory, or paying an outstanding bill, most of the time the money required needs to be accessed quickly.

But what if you don’t have enough money on hand to cover such expenses?

Usually, your next step is to apply for a loan in order to get the money you need to meet these financial obligations. But applying for a typical loan usually involves a lot of paperwork, and the approval process can take forever. You simply can’t afford to wait that long to get money you need right away.

The solution? Alternative quick business loan options that more and more non-traditional lenders are offering small business owners. Here are some options that can give you the quick cash you need.

SBA Loans Have The Most Competitive Rates

The Small Business Administration (SBA) is a federal firm that’s dedicated to helping small business owners improve their business ventures by helping them get the funds they need to do so. While the SBA itself doesn’t actually do the lending, it ensures that participating SBA-approved lenders when they offer loans to borrowers.

Since lenders are somewhat protected by the SBA, they are more willing to loan money to small business owners. This loan arrangement is highly suitable for small businesses who need the money for a variety of purposes, and who need the option of a long repayment term.

While SBA Loans typically exhibit the most competitive interest rates, they are much slower (months) than many modern financing options.

Working Capital Loan Offer Immediate Relief

Unlike a conventional long-term loan that’s geared towards larger loan amounts that are payable within a few years, a short-term working capital loan is usually for a much smaller amount, and the payback term period is usually no more than 12 months.

The payments are also made on a daily or weekly basis, as opposed to a monthly basis as with traditional long-term loans. These types of loans are more suitable for short-term financing needs, such as buying inventory or bridging the cash-flow gap between account receivables and invoice payments.

Business Lines of Credit Provide A Safety Net

This type of financing arrangement is ideal to apply for before you even need the money. With a business line of credit, you are given a certain amount of money in an account that you can withdraw from whenever the need for extra cash arises. Just like a credit card, you can withdraw as much as you want without going over the limit, and interest is only charged on the amount withdrawn. Talk about quick access to cash! You always have it available whenever you need to pay for emergency expenses!

Invoice Financing Is Great For Unpaid Invoices

Many businesses experience the frustration of waiting for payments to be made after a client or supplier has been invoiced. In the meantime, bills still need to be paid. But if you rely on these receivables to make the payments, you may be out of luck.

With invoice financing, you can get the money you need while you’re waiting to get paid. This makes it possible to take care of your expenses as needed.

With this funding arrangement, a lender buys your invoices while they’re still outstanding, and forwards you 85 percent of the loan amount. The rest is kept in a reserve fund, and once the invoices are paid, this reserve money is paid to you — minus the lender’s fees.

Equipment Financing

Are you a florist who needs cash registers? Are you a landscaper who needs tractors and mowers? Every type of business requires a specific inventory of equipment. But when money is too tight to buy it, equipment financing can help.

With this financial arrangement, you are loaned enough money to buy the equipment, then pay the lender back this money in addition to the required fees. When the loan is paid off, consider yourself the rightful owner of the equipment!

Getting Started With Quick Financing Now

There are plenty of quick business loan options that you can take advantage of. While some might not necessarily be suited for you, others might be just perfect.

To work out your business funding solutions the easy way, get in touch with Credibly today! To get started, complete our online pre-qualification request form.