Updated: May 3, 2021
When you are in a business, there has a new opportunity to double or triple your revenue. And also, you know better than anyone that things can come up unexpectedly. Equipment can break, revenue can unexpectedly slow and circumstances can change on a dime and you will be in need of extra cash as fast as 24hrs.
Most of us know that small business owners are very familiar with the difficulties associated with qualifying for small business loans. Banks reject almost 82% of these loan applications because they will take a deep look at your business to determine if you are really a good fit. And if you are qualified with a lower interest rate, it takes 2-3 weeks or even months before you receive the funding.
During these moments, having secure finances can be the difference between expanding versus failing your business. And luckily, there are some lenders who fund business loans and lines of credit within 24 hours, though borrows should know that faster loans can be more pricy. And this is where business loans can help.
We should be thankful for the rise of online lenders and made their business to know how to acquire a small business loan fast and easy.
But before anything else, you should know how to get a business loan in the easiest way.
1. Get your documents in order or prepare documents ahead of time.
- Ask your lender to find out what documents and information you will be needing to provide for the loan application. Other lenders may not require as much documentation but you should be prepared with whatever information or documents the lender will be asking.
2. Get a credit check before you apply.
- Business and personal are the two types of credit scores. Once you've been in business, your personal credit score is not that important, but it's still a factor in the loan decision. and of course, before starting the loan process, you should get a business credit report and address your trouble spots. Even if you have bad credit, don't despair.
3. Explore your options for alternative/online lenders, including those that are peer-to-peer and crowdfunding.
By doing this, you will never be wasting your time with a potential lender that doesn’t meet your business needs.
4. Know the type of business loans to get.
This term brings extra cash into the business to use for growth or any expansion, and for day-to-day expenses like payroll or inventory purchases. And should be repaid in a period of weeks or months.
For this term, it runs more than one but less than three years which is paid in a monthly installments basis.
Runs for three to 25 years, use company assets as collateral and requires monthly or quarterly payments from profits.
Which business loan that’s right for you? Well, the answer to that is tied to the purpose of the loan.
If you go along with the wrong process, it can really be time-consuming. But when everything is in the right place, you find the best funding services and you know the steps or the right process, you can easily get the fund within 24hrs!