5 Fast Business Loans When Instant Funds Are Required
Most of the entrepreneurs need sudden immediate funds at some point of their career because like human, businesses may also face any unexpected circumstance and require immediate funding. Applying for big bank loans which are based on lengthy procedure is not a feasible option under such circumstances so the business owner immediately start searching for the options online that can provide quick cash ASAP. The reason may be both positive or negative. Sometimes there could be sudden breakdown in any equipment which may require quick repair and sometimes extra raw material or man power could be required to complete large orders.
Below are the five extremely good options to arrange instant money as quick as possible:
1. Business Line of Credit
An intelligent business person is always aware of business line of credit and they always keep it secure from the very beginning. It comes with an opportunity that emergency funds could accessed through an active line of credit at any time. The biggest advantage of these loans as compared to other fast loans is that the interest rate stays the same on which you are currently borrowing but you can access additional funds without separate application.
Nevertheless, the disadvantage is that the lender can close the lone at any time so you may not have the emergency funds when you actually need them. Alongside, the collateral is asked by the lender from time to time to maintain your credit line. Though business line of credit, the business can access fast cash from $10,000 to $1 million make the repayment of the loan over 6 months to 5 years at interest rates of 7% – 25%.
2. Working Capital Loans
Working capital loans serves variety of purposes from operating expenses to taking advantage of business opportunity. A business can borrow from $2,500 to $250,000 from anywhere through these loans with a term of 3-18 months which is enough to meet its short term needs. Interest rate for these loans may vary significantly from 7%-9% annually and the potential amount could reach the business within 48 hours. The working capital loans posses least paper work and even available to the business with bad credit.
3. Payday Business Loans
If the business needs lump sum amount and is capable of paying back within 3 to 18 months, then it could consider payday business loans, often known as online payday loans for small businesses. Based on the company’s financials and creditworthiness, these loans provide from $2,500 to $250,000 within 48 hours. The biggest drawback here is that they are very expensive with the similar costs as of credit cards. They come in both forms short term as well as long term. Short term payday loans are accessed by bad credit companies who already exhibit multiple cash advances and range from a term of 4-6 months. Along with shorter terms, they come with high interest rate factors ranging from 1.1-1.5%. On other hand, Long term Payday loans range between 9-18 months or 12-21 months. These loans occasionally offer weekly payments which could help company’s cash flow while pay off the debt.
4. Invoice Financing for Fast Business Capital
Invoice financing is another brilliant option of arranging quick business capital for B2B business as it allows the business to sell its unpaid invoices to a finance company in exchange of lump sum payment of 50-90% of the total value of invoices. One the repayment will be done, the remaining value of invoices minus finance company’s fee is returned to the business for successful completion of the funding process. Indirectly, the invoices act as a collateral here and if the borrower decided to cancel the service then the additional fee is charged.
5. Merchant Cash Advance
This program allows the business to sell its projected revenue to lender in order to receive immediate cash to meet current financial requirement. They offer $2,500 to $250,000 funds with immediate availability. Instead of interest rate, the applicant is asked to pay factor rate ranging from 1.14-1.18%. To qualify for this option, it is required to present bank statements to determine the loan amount a business can access. The amazing part is that you do not need to repay the amount borrowed if the business goes under so technically merchant cash advance is a not a loan. Thinking about the bright future of the business, repay the amount over 12 months and get a high but not unreasonable APR of 20% and if you decide to pay over 2 months then cost will be a big factor because APR would be sky high in that case.
So, kick boost your business by availing any of the above mentioned instant cash option and do not let your entrepreneurship suffer because of lack of funds.
