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Whether it’s an unexpected equipment breakdown, a golden opportunity to stock up on inventory at a discount, or a sudden market shift, there are moments when waiting weeks for traditional financing just won’t cut it. Enter same-day* business loans, the financial lifeline for modern enterprises.

“Businesses that are used to working with traditional lenders may not be aware of same-day loans as an option,” said Credibly CEO, Ryan Rosett. “There’s a range of options available, and each has its own risks and potential rewards.”

And, more recently, more small businesses have stopped working with traditional lenders for financing, with totals dropping to 34% in 2021, from 43% in 2019.

In this blog, we’ll delve into the various options available, shed light on why your business might need a same-day loan, and the power of working with an alternative lender.

 

Why might my small business need a same-day loan?

In the rush of doing business every day, here’s just a few of the reasons why you suddenly might find yourself in need of a same-day loan.

  • Emergency repairs: Consider a local café whose espresso machine malfunctions on a Monday morning. Without it, they’re losing both daily sales and regular customers.
  • Sudden bulk orders: A craft soap manufacturer might receive a large, unexpected order from a retailer. While it’s a golden opportunity, they might lack the immediate funds for raw materials.
  • Short-term cash flow gaps: A seasonal business, like a pumpkin patch, might need funds to prepare for the peak season while waiting for pending payments from vendors.

 

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The best 6 options for same-day business loans and financing

Let’s get into the best options for small businesses looking for immediate financial assistance.

 

1. Short-Term Business Loans

Short-term loans are a good fit for businesses needing a quick cash injection for a short period and can manage frequent repayments.

Pros:

  • Fixed payments: This type of loan has a fixed repayment structure.
  • No collateral: Short-term loans are typically unsecured, meaning you don’t need to provide any assets as collateral.

Cons:

  • Higher interest rates: You may need to watch out for higher rates due to the shorter repayment period.
  • Frequent repayments: Your payment schedule is also more immediate, often requiring daily or weekly payments.

 

2. Line of Credit

A line of credit is a solid choice for businesses seeking flexibility, allowing them to manage unexpected costs without over-borrowing.

Pros:

  • Flexible access: Only draw on funds when you need them.
  • Interest on drawn amount: Only pay interest on the amount you use.

Cons: 

  • Maintenance fees: Some lines of credit have fees, even if you don’t draw from them. This is something to keep an eye out for.
  • Variable interest rates: Your rates can fluctuate based on market conditions.

 

3. Equipment Financing

This kind of financing is perfect for businesses in need of specific equipment to continue operations or seize growth opportunities.

Pros:

  • Quick funding for equipment: Directly finance the purchase or repair of equipment and get back to business sooner.
  • The equipment serves as collateral: The financed equipment acts as collateral, often allowing for better terms.

Cons:

  • Depreciation: New equipment might depreciate faster than the loan is paid off.
  • Limited use: Funds associated with this kind of financing can only be used for equipment-related expenses.

 

4. Business Credit Cards

This option is suitable for businesses with regular expenses that can be paid off monthly, allowing them to benefit from card rewards.

Pros:

  • Immediate access: Use the card immediately upon approval for purchases.
  • Rewards and perks: Many cards offer cash back, points, or other rewards.

Cons:

  • Higher interest rates: If you don’t pay this off monthly, your interest can accumulate quickly.
  • Credit impact: If you mismanage your credit, you could be dealing with some negative impacts to your score.

 

Have additional questions about same-day financing?

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What about same-day business loans with no credit check?

For many business owners, the prospect of obtaining a same-day business loan with a soft credit check sounds like a dream come true. Traditional lenders often place significant emphasis on credit scores, which can be a barrier for those with less-than-stellar histories. But is it truly possible to secure such a loan?

The answer is yes, but with caveats.

Some alternative lenders offer same-day business loans without placing as much importance on credit score. Instead, they might assess the business’s daily transactions or cash flow.

However, while these options provide a lifeline for businesses in need of immediate cash, they often come at a cost. The interest rates can be significantly higher, reflecting the perceived risk the lender is taking. Additionally, the terms might be less favorable, with shorter repayment periods or daily deductions from sales.

 

Can I get same-day business loans if I have bad credit?

Yes, it’s entirely possible for business owners to secure same-day loans even with unfavorable credit histories.

These lenders often evaluate the daily operations and cash flow of a business, considering its real-time financial health rather than past credit missteps. However, there’s a trade-off. These loans also often come with higher interest rates and less flexible terms, reflecting the lender’s assumed risk.

Take some time to think through what’s most important to you when getting business financing–speed, cost, amount. This will help you decide how you should move forward.

Waiting weeks for traditional bank approvals can mean missed opportunities. This is where alternative lenders like Credibly come into play.

Unlike traditional banks, we adopt a holistic approach, evaluating the real-time health and potential of a business.

*Approval in as few as four hours. Distribution of funds may take longer depending on underwriting requirements, industry, and merchant response times.

 

Plan for the future with Credibly.

We recognize the unique financial needs of your business. Although we don’t provide mezzanine financing, we’re equipped to help you assess if this is the right path for you.

Our commitment is to understand your business’s potential beyond just the numbers. We’re here to offer insights and guidance—not just financing.
If you’re considering your next financial move and wondering if mezzanine financing fits your growth strategy, let’s discuss your options.

With experience supporting over 30,000 businesses, we’re prepared to help you make an informed decision.

Begin exploring your financing possibilities with Credibly today

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