Most online lenders offer pre-qualification assessments to save time for loan applicants. Then, you can compare loan options and terms online to choose the right option.
You should remember that lenders will consider several qualification points when appraising your loan approval. Then, the cost of borrowing quick money will be significantly higher than traditional borrowings.
Here are a few quick methods to borrow money quickly for your business.
Fast Cash Business Loans
Online lenders provide fast cash business loans with quick processing. Most private lenders approve a loan application within 24 hours these days.
So, if you are looking for cash in no time, consider these online lenders. However, you must prepare yourself to fulfill loan requirements.
Popular online lenders like Ondeck, Kabbage, Fundbox, and Triton Capital provide different types of fast business loans.
You can assess loan qualification chances through prequalification tools from these online lenders as well.
Equipment Financing
Traditional and online lenders providing equipment financing are also fast and reliable borrowing options for your business.
If you need to borrow money for equipment purchasing, this is the right option for you. With equipment financing, you do not need collateral as the purchased equipment will serve as a pledge with the lender.
You may need to put some down payment though. Also, this type of borrowing is quick but not suitable for every business.
Online Business Line of Credit
A business line of credit is a useful option for businesses looking to fund their operational expenses. It means they can use the borrowed money as and when needed.
Online lenders like Kabbage and Ondeck provide business line of credit options with quick processing. You can fill out the loan application online within a few minutes.
Unlike commercial banks, online lenders offer flexible loan terms but charge higher interest rates. You must repay the total borrowed money every year or so as you do with a traditional revolving credit facility.
Crowdfunding Platforms
Borrowing money through crowdfunding may seem a lengthy and complex procedure. However, online lending platforms have made it easy and quick.
Specialized crowdfunding platforms like GoFundMe provide quick access to crowdfunding options. So, if you have got a great business idea and are looking to fund your startup, try this option.
Bootstrapping
Bootstrapping is the process of utilizing internal financing options rather than borrowing money. In this method, entrepreneurs fund their startups with their personal finances rather than external financing.
Bootstrapping allows business owners to keep control over business operations and ownership stakes. Business owners provide money for business needs as and when needed.
Friends and Family
If you want some quick cash without involving in a complex loan procedure, turn to your friends and family members.
You should always write a formal contract when borrowing money from your personal network. You can save time, energy, and interest costs through this method. However, you must compensate the lender in this case too.
Alternative Financing
Finally, some alternative financing options can quickly help you borrow money for your business needs.
Consider merchant cash advance loans if you accept credit card payments. Then, consider accounts receivable loans or invoice factoring for a quick loan.
Alternative financing options provide a fast method to borrow money. However, these methods are often costly and lenders may charge you significantly higher interest costs or commission charges.