Need a business loan right now? Here’s how to access finance fast.
Cash flow can be tricky, especially when you’re running a small business. Unfortunately, the bills still need to be paid no matter how tricky your cash flow situation. If you’re in need of fast funds to fill orders or for any other business expenses, you have a few options to consider.
How fast can I get a business loan?
Turnaround times differ between lenders, but with many smaller, agile lenders cropping up in the small business finance space, turnaround times have shortened significantly in recent years. What used to take weeks now only takes a few hours.
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How much can I borrow for my fast small business loan?
The amount you can borrow depends on a variety of factors, including:
- The amount of cash flow the business has
- Why your business needs the funds
- How long the business has been around
- The credit history of the owner of the business
It’s ideal for you to think about these things before applying for a fast business loan as these are considered by lenders before deciding whether or not you and your business are eligible for the loan.
What types of business loans are available for me?
There are various business loans to consider if you need cash fast for your business. These include:
- Business term loan. This type of loan involves you borrowing an amount of money and repaying it in a fixed period of time.
- Line of credit. A line of credit gives your business access to funds up to a specified limit. You can draw up to and including this limit when you need to and only repay the funds you use.
- Business credit card. This works in the same way as a personal credit card except the funds are used for business purposes. The card account can also come with extra features such as additional cardholders or rewards points for the business.
- Business overdraft. This is a function that lets you overdraw your business bank account up to a specified limit. You only pay interest when you use the funds but you may pay a regular fee.
- Invoice financing. This funding option allows you to sell your outstanding invoices to a financing company for a percentage of the invoice.
- Equipment financing. This type of financing allows you to buy, lease or hire equipment that you need for your business.
How can I compare my business loan options?
There are a few factors that can help you decide what loan is best for you. Here are a few things to consider when applying for a business loan.
- Turnaround time. If you need access to finance fast, look at how quickly the lender can get you your funds. Turnaround can be in as little as a few hours to a few weeks.
- Loan term. Loan terms for business loans differ and can be for as little as three months to up to five years. Other products such as line of credit products offer ongoing terms.
- Upfront and ongoing fees. Fees can include application fees, loan origination fees, monthly fees and annual fees.
- Interest rates. Interest rates may be standard annual rates or factor rates.
- Secured or unsecured loans. If you have business or personal assets to attach to the loan you may want to consider a secured business loan as it can offer more competitive rates.
Will I be eligible for a fast small business loan?
The eligibility criteria will differ between lenders. However, these are a few things you should keep in mind when considering your eligibility for a loan.
- Age of the business. Lenders are more likely to approve loans who have shown they can survive the marketplace for at least a year.
- Turnover of the business. Is your business making a profit?
- Your personal credit history. Do you have a bad credit history? Are you the owner of the business? This could impact your eligibility for a loan.
- ABN/ACN. You need to have an Australian Business Number (ABN) or Australian Company Number (ACN) before applying for a business loan.