Same-Day Business Loan: 5 Options for Quick Online Funding
Running a small business can feel like an uphill battle.
There will always be some pressure, but it’ll feel magnified when there are unusually high expenses that pop up (and they will!).
What are you supposed to do to recover from a disaster, repair a crucial piece of equipment, or cover any other unusually high expenses that might pop up?
Same day small business loans can be the lifesavers that keep your company afloat even in the hardest and most urgent financial jams. Use this guide to learn all about same day business funding and how you can get it in times of need.
What are same-day business loans?
Same-day business loans are funding solutions that are accessible to business owners when time is short and their need for financing is high. The ongoing process of running a business isn’t always smooth sailing; when a financial storm hits, same-day business loans are there to help keep your ship intact.
There are a variety of business loans that you can apply for, but when you’re under pressure to get your hands on funds at short notice the number of loan types best suited to your needs will become smaller. If you’re curious about exactly which loan types are best to get funding on the same day, you’ve come to the right place – we get to that in just a bit. First, let’s cover where to find same-day business loans.
5 best same-day business loan options
Same day business funding comes in many forms, some of which process faster than others. In general, online small business loans process quickly because they require less paperwork to be filled. Another big perk of same day business loans is that they are less restrictive in terms of what you’ll be allowed to use them for and the way you make payments.
With that in mind, fast loans will come at a cost. Borrowers of same day business loans will often face higher interest rates, stricter requirements to qualify, fees, and so on. Be sure to take those factors into consideration so that you can choose the right financial option for your own business. Before making your decision, it’s important to know your options…
1. Line of credit (LOC)
More than 40% of business financing applicants applied for a business line of credit. Wondering why they’re so popular?
An LOC works very similarly to a credit card, in the sense that the funds are there for you to use on an as-needed basis. Unlike lump-sum loans, you won’t feel pressure to spend the money you have at your disposal since you’ll only pay interest on the amount that you decide to withdraw.
A line of credit or ‘credit line’ is a very useful form of same day business funding, since you can apply for it in advance and have it on-call for whenever that time of need hits.
Qualifications & features:
- Fastest time to funding: 24 hours!
- Time in business: 3 months minimum
- Interest rates: Start at 1%
- Repayment: Weekly
- Minimum FICO score: 450
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2. Invoice factoring
When customers are slow to pay you what they owe, your business’s cash flow can suffer. Invoice factoring is a fast way to get a lump-sum loan that can cover up to 80% of the amounts due.
The loan provider fronts you the majority of the money and then pays the rest after collecting from those customers with overdue bills (keeping a percentage for themselves as payment for their services).
Quick tip: if unpaid invoices are an ongoing problem that your business faces, take a few minutes to look over these 5 strategies for dealing with non-paying customers.
Qualifications & features:
- Fastest time to funding: 3 hours!!
- No collateral needed
- Interest rates: 2-4%
- Repayment: weekly or monthly
- Minimum FICO score: 500
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3. Merchant cash advance (MCA)
If you’re searching for fast funding, a same day cash advance is one option that can fill your financial needs. MCAs provide a lump-sum loan which is repaid by automatically siphoning a percentage of future credit and debit card transactions. While it’s convenient in the sense that you won’t need to remember to make payments on time, the frequency of payments is higher and the repayment periods are usually shorter.
It should also be noted that MCAs have some of the highest interest rates of all small business loans. That said, a same day cash advance is immensely useful particularly if you’re having difficulties getting approved for other types of business loans.
Qualifications & features
- Minimum time to funding: 4 hours!
- Time in business: 3 months minimum
- Interest rates: Start at 10%
- Repayment: daily or weekly
- Minimum FICO score: 500
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4. Unsecured business loan
While they usually come with stricter requirements to qualify, unsecured business loans are extremely helpful when it comes to the search for same day business loans with the best terms.
Since they don’t require any form of collateral (hence the ‘unsecured’ part of it), lenders will look more closely at your credit score and other parts of your financial history including monthly revenue and non-sufficient fund alerts, just to name a couple. Let’s just say, if you’re able to qualify for unsecured business loans, it’s clear to lenders that your business is doing well enough that providing you with the funds the same day shouldn’t be an issue.
Qualifications & features
- Minimum time to funding: 3 hours!
- Time in business: 6 months minimum
- Interest rates: Start at 7.5%
- Monthly revenue: $5k minimum
- Minimum FICO score: 650
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5. Business credit card
Did you know that 75% of all American consumers have a credit card? But they’re not the only ones who can benefit from having funds accessible at the swipe of a card – businesses can also use credit cards.
Credit cards are particularly useful for regularly-occurring expenses that you know you can pay off quickly. That’s just one of the ways to use credit cards to build credit, which will ultimately help you qualify for more desirable forms of business financing (such as those mentioned above).
Qualifications & features
- Minimum time to funding: 2 hours!
- Time in business: 3 months minimum
- Interest rates: Start 0% for first 15 months
- Repayment schedule: monthly
- Bonus perk: Cash back rewards starting at 1% on all purchases
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Where to find a same-day business loan
If a same-day business loan is what you’re searching for, there will be fewer places for you to go looking than if time was less of a factor. For example, when you compare alternative business funding vs traditional bank loans, you’ll find that time-to-funding can take weeks or even months through banks.
When it comes to the question of where to find same-day business loans, the best place to look is with alternative lenders – particularly those that have adopted fintech lending into their system. Advancements in technology have allowed alternative lenders to process loan applications more accurately and faster than ever before.
Side note: Fintech has also introduced the concept of an online lending marketplace. If you’re unfamiliar with the term, take a quick minute to learn more about how this new approach is revolutionizing the business lending process.
Is it possible to get business funding on the same day?
Let’s face it, the odds of getting approved for a small business loan can be tough. A staggering 82% of SMB’s that apply for funding from their banks are rejected, and that’s before we even consider the inherent difficulty in obtaining a same day business loan! Despite these small business lending statistics, it’s still possible to get same day small business loans – though it won’t always be so easy.
Often times, the need for a speedy business loan arises from urgent and unexpected financial issues. Since you won’t be able to anticipate such obstacles, the best course of action is to be prepared to apply for business funding at all times.
Basic ‘quick’ business loan requirements include not only keeping monthly bank statements at hand but also doing your best to maintain a consistent monthly bank account balance, number of monthly deposits, and monthly revenue.
Ultimately, the time-to-funding will depend on several factors, including:
- The loan type
- The lender
- The business’s financial profile
- The amount of money being applied for
Note: Of course, the type of business will affect the kind of industry loans a business needs, as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.
How to qualify for a same-day business loan?
Even when considering the fact that same day business loans are designed to have easier qualifications, small business owners may still face some obstacles depending on where they’re applying. For example, if you’re hoping to obtain same day small business loans from your bank, you’ll likely be in for a rude awakening due to the high rejection rates. Fortunately, innovations in financial technology have brought about a whole new industry of same day business loans online.
One prime example of the power of digital financing is the proprietary LendingScore™ Technology designed and developed by Become, which provides small business owners with benefits that they’ll be hard-pressed to find anywhere else. How does it work? We’re glad you asked!
With advanced algorithms, the LendingScore™ platform creates a detailed financial profile of your business. On your free profile, you’ll receive a score between 0 and 100 that signifies your likelihood of getting approved for a loan.
Whether you qualify right away or not, you’ll gain access to your very own tailored LendingScore™ Dashboard that highlights precisely what you should focus on in order to improve your funding odds and access more (and better) loan offers.
When you’re in need of quick access to business funding, you won’t want to waste your time jumping through bureaucratic hoops and dealing with nonsensical technicalities just to end up with a lender that doesn’t fit well with your business.
Applying for same day business loans online through Become takes only a matter of minutes (around 5 to be precise), and you can get matched with the optimal loan provider for your business’s specific profile in less than 24 hours.
How to apply for a same-day business loan
Applying for a same-day business loan online through Become is not only fast, but incredibly intuitive as well. Take just a few minutes to fill one application and you’ll gain you access to business loan offers from dozens of the nation’s top lenders.
Step-by-step guide for applying for a same day small business loan:
- Choose your desired loan amount and select ‘Get Loan Offer’
- Fill in the requested information (including time in the industry, revenue, business, etc.)
- Submit your business’s checking account information for analysis
- Wait for offers. You can also review your status by clicking ‘Access Your Loan Application’
- Review offers and select your preferred lender and terms
- Receive the funds to your business checking account
- Review your tailored LendingScore™ dashboard to improve your funding options
- Improve your rates – if your LendingScore™ is insufficient, follow the personalized plan (8-12 weeks to unlock funding)
Beat the clock
You may be in a rush to get a same day business loan, but that doesn’t mean the process has to be difficult. Become can help you get funded fast so that you can get your business operating at full capacity. Find out today how the power of fintech can make the business loan application process faster, easier, and more likely to end in approval!
And don’t forget to share this article so that other small business owners like you can learn about same day small business loans!
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