Each month, more than 500,000 small business startups open their doors for the first time. For these businesses to stay open, they’ll need money. And, unless they’re independently wealthy or have tremendous business resources, this means that most new small business owners will need loan options.
Whether it’s equipment financing, invoice factoring, term loans, franchise financing or a business line of credit, most entrepreneurs and business owners go to a traditional bank seeking business capital. Unfortunately, the experience requires time and patience. Most traditional financial institutions require annual revenues north of $1 million a year plus a personal credit score above 700 if not higher.
That minimum credit score plus personal guarantees makes the application process arduous at best. Your funding options can be limited with the stringent minimum qualifications. Most business owners complain that the time to funding is too long. According to a study by Harvard University, the funding time can be upwards of 90 days. The study found that the average owner visited almost 3 banks and spent close to 28 hours on the application process.
At Sunwise Capital, we specialize in connecting small businesses with fast business loans. We offer options for quick same-day and next-day approvals with a high approval rate so that your business can get the funds they need quickly. The loans range from $10,000 to $500K for most businesses.
If you are looking for commercial real estate loans, we have SBA loans up to $5M.
Let’s examine how fast business loans could benefit your small business.
Use Loans to Address Various Business Needs
For a company to maintain regular operations, companies need what is called “working capital.” This capital is money that you’ve earned from making sales, minus overhead costs, employee salaries, and what you owe to your suppliers.
Working capital is necessary to grow your business. Marketing campaigns, equipment maintenance, and expansion of your business all require spending your working capital.
But with all the overhead costs involved, it can be hard for new business startups and younger companies to build up these funds. Also, using your positive cash flow to cover these expenses can leave your business without emergency funds.
For this reason, many business options choose fast small business loans to cover these operating and expansion costs. These loans have high approval rates which allow you to grow your business without tying up your liquid capital.
Get Emergency Funds
As the old saying goes, “Men make plans, and God laughs.”
No matter how much you plan your business finances, there can still be instances where you’ll need to spend money on unexpected expenses. Perhaps you’ll need equipment loans when an essential piece of equipment breaks or unforeseeable circumstances causes you to lose revenue.
In these instances, you need the comfort of knowing that you can get the money you need when you need it. If you go through the Small Business Administration, you can expect to wait for a minimum of 60-90 days. The process of applying through a bank isn’t much faster.
When you apply for fast loans, you can get your money in as little as 24-48 hours. These quick business loans with their easy approval will ensure that your business won’t have to stop operating and lose revenue while waiting for a capital loan to come in.
Work with Fewer Documents
Another frustration of going through the Small Business Administration or a bank is the amount of documentation required. To pull all this paperwork together can be difficult and time-consuming.
For instance, many lenders require business owners to show business plans, financial statements, and both personal and business bank statements with personal and business tax returns for the past three years. In addition to the time it takes for you to get these documents together, you also must wait for the lender to review the documents.
By contrast, a short term business loan comes with much less required documentation. If fact, with Sunwise Capital, you can even apply for your loan online using the online application. This quick approval will give you more time to work on your business, and less time filling out bothersome paperwork. In fact, you can have your funds the same business day!
- All you need is a minimum personal credit score of 500+
- A one-page business loan application
- 3 months’ bank statements from your business checking account or bank account
- Loan amounts between $10K to $500K
- Approvals in 24 hours
- Funded as quick as next day
- Loan term from 6 months to 18 months
- Merchant cash advances for those that take credit cards
No Collateral Needed
Another benefit of fast business loans is that you often have the option to choose an unsecured loan. With these types of loans, you won’t need to put up any property or personal or business assets as collateral. By contrast, most banks require both assets and excellent credit for a loan.
Of course, just because the loan does not require collateral doesn’t mean that there is no risk involved. It’s still important to make all your daily or weekly payments. Otherwise, you may have difficulty getting approved for another loan in the future.
Don’t Let Credit Hold You Back
Running a small business requires taking on a lot of risks. For this reason, many small business owners develop less-than-stellar credit scores. Sunwise Capital specializes in bad credit business loans. If you have challenges with your business credit or personal tax liens up to $175,000 we can help.
These credit challenges can be a problem for businesses that apply for a loan through a bank. To get approved, a business owner with poor credit may need to accept a loan with a much higher interest rate, or not get approved at all. With fast business loans, it’s often possible to find lenders who will work with your credit profile.
Maintain Ownership of Your Company
Of course, getting a loan isn’t the only way that small businesses get the operating funds they need. Some small businesses choose to use investors instead.
One benefit of going through an investor is that you won’t need to repay the funds. The drawback, however, is that, in return for the funds they provide, investors take over ownership of a certain percentage of the business. Some businesses owners end up working with so many investors that they become minority owners of their own company.
With small business loans, you won’t have to give up any equity in your business. This type of business funding means that, even though you’ll have to repay the loan, you will get to maintain ownership of all the growth in your business.
Choose Loans with Shorter Terms
When you decide on a loan through the bank or the Small Business Administration, you will typically get a longer repayment term. While paying off the loan over 5 to 10 years will lead to lower monthly payments, it will also keep your business in debt for a longer period. When you get a long term loan, you can also end up paying more interest, even if the rate is lower.
When you choose a loan with a longer term, you will have to calculate repaying that loan into all your financial projections for the coming years. These loan repayments can hold your business back. Ask you accountant for a loan calculator or click here.
By contrast, choosing a loan with a shorter term will help you get out of debt more quickly. This way, you can focus on building your company’s revenue, rather than on making payments.
Get Fast Business Loans Today
A business short term loan can be an excellent way to get your business the funds it needs quick. Instead of waiting weeks or months to get approved, you can get cash in a matter of days.
To learn more about how to get fast business loans for your small business, contact us at 888.456.9223. Deal direct with our underwriters who will help you find the perfect loan for your business. Become one of our many success stories to help your business explode!