An infusion of capital to your small business can enable you to expand to a new location, recruit more employees, or launch a new product line. When cash flow is tight, you may need short-term financing just to keep your business operating.
The best type of financing for your business depends mostly on what you need the money for, but also on factors such as how much money you need and if you’re prepared to take on debt.
You may need quick access to funds when your company faces a crisis or you find your bank account a bit short when payroll is due. In those situations, you may find yourself looking at business loans for which you can apply and get funded within 24 hours.
Here are some of the best quick financing options for small businesses.
Entrepreneurs often work conventional jobs in the beginning. You might use the salary from a regular job to keep your firm afloat until you’re confident it meets enough market demand to go all in. Many successful business owners have taken this path.
However, your company can encounter some urgent requirements while waiting for your next paycheck. The best choice in this situation may be a payday loan. Compared to other loan forms, payday loans are generally smaller, as they are targeted at meeting minor emergency requirements. You can find more information about this option at My Canada Payday.
Payday loans allow you to acquire up to $500, but they normally don’t require credit checks, so you can still get approved for a payday loan even if you have low credit or no credit.
Business Line of Credit
A business line of credit is sort of a cross between a typical business loan and a cash advance on a company credit card. Depending on your creditworthiness, you will negotiate with a lender to obtain approval for a certain amount of funding. It may take as little as one day for this clearance.
A business line of credit, if authorized, allows you ongoing access to financing anytime you need it, unlike a single loan. It may be a better solution than applying for new loan every few months to meet short-term cash demands on a regular basis if your business is seasonal.
Merchant Cash Advance or Split Funding
A lump payment, known as a split, financing, or merchant cash advance, is paid back by taking a portion of your daily credit card transactions. Split funding has a benefit because of how the payback schedule is structured.
When the company is booming, debt repayment is simple. Because the payback amount depends on a percentage rather than a fixed number, it is easier to manage your daily payment when business is sluggish.
Short Term Loan
This is a one-time payment into your company bank account that you agree to repay with interest after a predetermined time. The concept is used over a shorter period, typically less than a year, but occasionally less than 18 months.
Short-term loans are quicker to obtain (often within a few days) and more affordable than other equivalents. However, they are also more costly.
Equipment finance is likely your best choice if you’re looking for quick small business loans that will give you fast cash for buying expensive equipment for your business. It might be the ideal option for business owners who want permanent assets right away, such as vehicles, machinery, or office furnishings.
Other factors to consider when looking for the best financial option for you include business information, such as your history of sales, the balances in your business bank accounts, and how long you’ve been in operation. The type of loan you’re seeking will determine what the lender will look for. While a time constraint may restrict your options, it doesn’t eliminate them.