Fast Business Loans

How To Get a Fast Business Loan

Running a business means dealing with emergencies where you need access to working capital. There might be times when customer payments get delayed, or sales are slow. Even a huge demand for your products can have you scrambling for more cash to purchase inventory.

Fortunately, small business loans can help you keep operations going smoothly during times like these.

Fast business loans refer to financing options with a fast approval process. These types of business loans are typically offered by online lenders with less strict eligibility requirements than traditional banks. They also tend to have a streamlined online application process, so you can receive your funding within days.

But just because you can get approved doesn't mean you should go with just any business loan option. Consider the qualifications, interest rates, and fees to make sure you have the right type of financing.

The good news: When you work with Clarify Capital, you'll get matched with an advisor who will work with you every step of the way. Your advisor can help you choose the best financing option based on your business needs and the qualifications you can meet. And with a marketplace of more than 75 lenders, you're sure to get the best loan offers.

6 Best Options for Fast Business Funding

Whether you need capital to take advantage of profitable business opportunities, repair a crucial piece of equipment, or cover operating expenses, we have you covered. When you partner with Clarify, your advisor will help you choose a loan based on your needs and goals.

Let's explore some types of loans you can apply for through Clarify Capital.

Short-Term Business Loan

Small business owners can get short-term loans that are unsecured and have no collateral requirements. With term loans, borrowers receive the loan amount in a lump sum.

You pay back the loan plus interest in fixed monthly payments within a predetermined repayment schedule. The term length is usually six months to two years.

Business Line of Credit

A business line of credit is a flexible financing option that works similarly to business credit cards (at a much lower interest rate than a credit card). With this type of financing, you get access to a revolving credit limit that you can pay and draw as needed. In addition, you only pay interest for the amount you borrow.

Borrowers who meet the criteria can get approved instantly for a credit line. Many business owners receive the funds in their business bank accounts within hours of approval. That's why it's a good financing solution for businesses that want fast access to cash when needed.

Invoice Financing

Invoice factoring allows you to borrow money using unpaid invoices as collateral. It's a popular fast funding option for small businesses that sell products and services on credit. There's no personal credit score requirement, so it's a good financing solution for small business owners with bad credit.

In a factoring agreement, you receive up to 100% of the total invoice value in exchange for a fee. You turn over your accounts receivables to the factoring company. Then, they collect from your customers when the invoices come due.

Equipment Loan

Equipment financing allow business owners to borrow money for the purchase of machinery. You can borrow up to 100% of the cost of the equipment. Repayment terms depend on the useful life of the asset.

It's a form of asset-based financing, which means the equipment you want to buy acts as collateral for the loan. So, lenders are less strict with minimum credit score requirements. Additionally, business lenders don't require a personal guarantee for equipment loans — making it a great option for new businesses or startups.

SBA Microloan

Microloans are one of the loan programs available through the U.S. Small Business Administration (SBA). SBA loans have some of the lowest interest rates because they're guaranteed. So, if a borrower defaults on the loan, the government pays the lender up to 85% of the unpaid balance.

Small business owners can borrow up to $50,000 through the Microloan program. You can apply for funding through SBA-approved nonprofit organizations. Each lender has their own credit requirements, but most will ask you to sign a personal guarantee or provide collateral to secure the loan.

A personal guarantee means you agree to be responsible for the debt. So, if your business defaults on the loan, the guarantee gives the lender the right to your personal assets.

Merchant Cash Advance

With a merchant cash advance (MCA), your business can get funding in exchange for a percentage of your future sales. It's a quick business loan option with no collateral or personal credit requirements.

With this small business financing, you receive a lump sum based on your credit rating and past sales receipts. Then, you pay back the advance through automatic withdrawals from your credit card sales or merchant account daily or weekly.

• Learn how to choose a merchant cash advance direct lender.

Apply for Quick Funding

How Fast Can You Get A Business Loan?

At Clarify, we strive to keep things simple, convenient, and transparent. That's why our online application is quick and easy. It takes just two minutes to fill out the online application form!

You can even get same-day funding if you meet the qualifications for the type of loan you're applying for. Once your application is approved, you'll receive funding in your bank account in one to two business days.

How Much Business Financing Can You Get With Clarify Capital?

Lenders base the loan amount you can get approved for on different factors, such as your credit rating, time in business, and annual revenue. The amount you can borrow depends on the loan you're applying for.

For instance, you can borrow up to 100% of the equipment you want to buy with equipment financing. Invoice factoring also gives you cash upfront for a percentage of your unpaid invoices.

With Clarify, you can receive funding between $10,000 to $5M. We'll help you choose the best loan depending on your business needs. Then, we'll connect you to loan providers with the best factor rates.

When Does It Make Sense To Get a Fast Small Business Loan?

Veteran entrepreneurs say the best time to apply for a loan is when you don't need it. It's great advice, but not everyone has that foresight, and it's not always feasible for new business owners.

Sometimes, quick business loans are the best financing solution, just like the examples below.

1. Take Advantage of Profitable Opportunities

In running your business, there are times when you have to make quick decisions and actions to make a profit or achieve your goals. Say you have a boutique that runs out of inventory in the middle of the peak season.

You don't want to close your shop or tell customers you don't have the items they want. In this case, it'd make sense to take out a loan so you can buy more inventory. A fast loan is just what you need to buy the products, sell them, make money, and pay off your debts.

• Apply for Growth Opportunity Loan

2. Make Equipment Repairs and Upgrades

Every piece of equipment has a limited life span. When a crucial part of your business breaks down or becomes obsolete, repairs and upgrades are necessary to keep your operations going.

Repairs and equipment can be expensive, but you can use quick loans to afford the cost of repairs or new equipment. This way, you aren't taking out capital from your business and compromising your cash flow.

• Apply for Equipment Financing

3. Purchase Materials to Fill a Large Order

You work hard to bring in more sales to your business. But what happens if you need to fill a large order and don't have enough materials or manpower?

You'll need to purchase materials or bring in extra workers. It can make sense to get funding through working capital loans like a business line of credit or short-term loans.

• Apply for Material Purchase Loan

4. Manage Seasonal Gaps in Cash Flow

Industries like retail, manufacturing, and transportation have seasonal trends where sales slow down. Some companies can cut back on expenses during these times, but it's not always possible.

If you're experiencing a downturn, you can bridge the gap with a quick business loan. A short-term loan helps you stay afloat and get your company back on track to success when peak season starts.

• Apply for Working Capital Loan

5. Hire Employees to Keep Up With Demand

Employees make the products and deliver services that create value for your business. But hiring and training employees come with an added expense that you may not have the budget for.

The capital you receive from a small business loan can provide the funds you need to hire new people. With more people, you can increase the number of products you make or customers you serve, meaning greater profits.

• Apply for Short-Term Loan

6. Advertise and Promote Your Business

Some businesses can grow from word of mouth and referrals as a way of advertising. In fact, these methods are great for getting a business started. But advertising and marketing your business is a necessary investment.

You can't just have amazing products and expect people to find you on their own. You need to let customers know you exist and your products are the solutions to their problems.

• Apply for Business Line of Credit

FAQs about Fast Business Loans

Getting access to capital fast might be the best news for your business, and you want to know more. Here are the answers to common questions about fast business loans from entrepreneurs like yourself.