Fast Loans for Small Business

With many
business loans, you might find that the turnaround time for your application
can be anything from a few days to a few weeks. This might not be an issue if
your small business loan is part of some longer–term improvements. If you’re
planning to move to a bigger workshop in a few months, for example, then you
won’t mind waiting for the application to be approved.

However, sometimes
you might need the funds within a matter of hours or a couple of days. You
might think that this isn’t possible with business loans, but there are some
providers that can approve your application and have the funds to you within 24
hours.

Is a fast business loan right for you?

Very often, fast
business loans are for smaller amounts – maybe you have a seasonal slump in
sales or you need to make some sudden repairs to your premises – and so a small
cash injection with quick approval is ideal.

How rapid can turnarounds be for fast business loans?

Of course,
turnarounds vary between lenders, but many fast loan providers can approve your
application within a matter of hours and get the funds to you within by the
next business day.

In general,
non-bank or fintech lenders have faster turnarounds than the bigger banks –
it’s their selling point.

What sorts of amounts are available to borrow? مضمار الخيل

Most business
loans start at $5,000 but there are differing maximum amounts. Some max out at
$25,000, while others go up to $500,000. However, the amount you’ll be eligible
for will depend on several factors, including:

• Your business’ cash flow and its immediate projections
• The reason for the loan – some reasons are “better” than others, such as needing to buy fancy new equipment that will increase your profits
• How long your business has been in operation, and
• Your credit history, as well as that of any partners and directors.

You’ll be able to
explain your reasons and provide all the necessary information when you make
your application. Before you think about making any applications, however, you
need to make sure your business is eligible, in terms of turnover and length of
operation. Never be tempted to apply for a loan if you don’t fully fit all the
criteria.

Reasons that a business may want a fast loan

To help with a
dip or restriction in cashflow

Lots of
businesses have issues with their cashflow at times. This could be due to
buying new inventory or equipment, or an unusual economic event that’s
temporary and (hopefully) rare.

To help with
the purchase of new equipment or other infrastructure

Small business
loans can help you to buy new machinery or equipment that will help your
business to expand operations or to bring down your production costs.

To help your
business to expand

A loan can help
with the hiring and training of new employees, buying more stock or raw
materials or moving to larger premises.

To consolidate
existing debts

If you have a few
separate debts that are taking up a lot of time to service each month, then
bringing them all together under one umbrella can save time and effort. You may
also find that your interest rate is better.

How do I compare fast business loans?

You’ll need to
examine a few factors when you’re comparing business loans before you decide
which one is best for you and your needs.

The turnaround time

If you’re looking
for fast loans, then you need to narrow your search down to providers that can
assess and approve your application and deliver the funds within 24 hours or
so. If it’s not quite so urgent, then look at providers with turnaround times
of a week or more.

The repayment term

This term could
be anything from three months to five years, so work
out how much you can afford to pay back each month while clearing the loan in
a timeframe that doesn’t generate loads of interest.

The upfront and ongoing fees

Most loans
involve some fees, like set–up fees, service fees, early repayment fees and so
on. If you see a loan with no fees, look at the interest rate as it may be
higher than others. Similarly, high fees may mean lower interest rates.

The interest rates

You may prefer
fixed rates or variable rates, depending on the length of your repayment terms.
Fixed is better for longer terms.

Secured or unsecured?

Secured loans,
where you offer business or personal assets as collateral, often have lower
interest rates and longer terms, so decide which works best for you.

Am I eligible?

Lenders have
different eligibility criteria, but make sure you know what the requirements
are before you apply. Requirements include:

The length of operation

Many new
businesses fail, so lenders want to see that you’ve been operating for at least
a year.

Your turnover

If you have a
regular and steady turnover then this gives lenders confidence in your ability
to repay any money that they lend to you.

Your credit history

If you, as the
business owner, has a poor credit history, this could make you less eligible.

Your ABN

You’ll need your Australian Business Number or Australian Company Number to apply.

How to apply for a small business loan

Once you’ve
selected your ideal provider from the comparison site, you should hit the “Go
to Site” button on the comparison panel and take it from there. You’ll need
some of your business’ details to hand to get through the first stage of the
application, so make sure they’re there.

There are also other finance solutions available

A line of
credit

A line of credit
is a revolving debt; you have a pre-defined limit of credit that you can draw
down on and it’s “replenished” as you pay it back.

A business
credit card

This works in the
same manner as a personal credit card but it’s dedicated for business purchases
and purposes. These cards often have a few extra features like special rewards
points and the ability to nominate additional card holders.

A business
overdraft

With this product
you can overdraw your business bank account (up to a limit). You only pay
interest when you’re overdrawn, but you may have to pay a monthly fee for the
option to overdraw.

The information contained on this web site is
general in nature and does not take into account your personal situation. You
should consider whether the information is appropriate to your needs, and where
appropriate, seek professional advice from a financial adviser. If you or
someone you know is in financial stress, contact the National Debt Helpline on
1800 007 007.