What's there to consider?
When thinking about applying for quick business funding, it's really important to assess your business's financial health and the repayment amount you feel comfortable with in relation to the loan amount. Understanding what you need will help you find the right solution.
Interest rates and fees vary with different funding options. Some, but not all quick business loans may have higher interest rates compared to traditional loans. Compare rates, fees, and repayment terms to find the option for you.
Obviously the biggy is the speed of funding. The time it takes to receive funds can vary, some lenders offer same-day or next-day funding, while others may take longer, work out how fast you need the cash.
Quick business loans are typically unsecured loans, so you can borrow without giving any security on any business assets, although it’s likely you’ll be asked for a personal guarantee. This means if the business becomes unable to meet the loan repayments, the individual assumes personal responsibility for paying back the loan.
Ideally you are looking for a loan without early repayment fees, so you only pay interest for the time you have the loan. Repaying your loan early is a great way to reduce the overall cost of borrowing.
Applying for quick business funding
Applying for a quick business loan is a pretty straightforward process. You can either research reputable lenders, or use a service such as Same Day Business Loans that specialise in quick business funding. Once you have your short list, check to see what documentation they may need for the application. Some lenders won’t ask for anything whereas others may ask to see business bank statements, filed accounts or shareholder information
The application itself should be streamlined and shouldn’t take long to fill out. You’ll need to provide information about your business such as shareholder details, top level financials, and purpose for the funding.
After submitting your application, the lender will review your information, manual reviews take longer and more lenders are now automating the process to speed up the time it takes to get a decision, with some offering instant decisions. If approved, it’s pretty standard for a lender to then run a personal credit check and ask for a personal guarantee to secure the loan. It maybe at this stage that some lenders may also request additional documentation.
If approved you’ll then receive a loan offer stating the amount and terms, it’s then for you to decide if you want to go ahead with the loan. It's important to review the terms and conditions of the loan agreement before accepting so that you are clear on the repayment terms and any fees.
After accepting, funds will be transferred directly into your business bank account, it can take as little as 2 hours with some lenders.