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Key takeaways
- Fast small business loans can be secured as quickly as within 24 hours
- Fast small business loans still require the submission of documentation but often have a streamlined underwriting process
- While fast business loans provide speedy access to funds, you may find better terms with other options
Some online lenders can fund loans in less than a week — some in as little as a single business day. These lenders have streamlined processes that require minimal documentation. By contrast, while some banks are becoming faster, many still have applications that can take weeks or months to fully process.
Compare top fast lenders that offer the turnaround you need and have all your information prepped before you apply. This will help ensure a quick response and a fast turnaround on your next loan.
How long does getting a fast business loan take?
Lenders that boast fast approval speeds are able to process and fund your loan within a week. Their quick underwriting process means they are able to disburse funds to your business bank account as soon as your loan paperwork is signed.
Step 1: Applying
Depending on the lender, it may take less than thirty minutes to apply for a loan. But this assumes you have prepared ahead of time. If not, this portion of the application process can be the most grueling.
Fast lenders may still require important documents and information like your business plan, profit and loss statements, tax returns and bank statements. Gather these before you get started to move swiftly through the process.
Before you start an application, explore the types of fast business loans available to you. It’s never one-size-fits-all funding, and there are plenty of options that are both fast and flexible.
The documents you need to apply include:
- Business information
- Owner details
- Business financial statements
- Personal finances
- Collateral
- Personal guarantee
Bankrate insight
Find lenders that offer competitive rates in addition to quick funding speed. The best way to do that is to know your credit score and business financials, which will also make submitting a few applications at one time a quicker, smoother process.
Step 2: Underwriting
Underwriting involves checking your business’s financial records and creditworthiness. It may also involve digging into each owner’s credit history and assessing your collateral, if applicable. This may be done by a human, but online lenders may use computer software to quickly go through the information you submit. Some lenders advertise near-instant funding decisions powered by their software.
For short-term business loans like invoice financing, a lender may simply need access to your bookkeeping software. For other loans, an underwriter will need a variety of documents.
To help the underwriting process move swiftly:
- Request a smaller amount. By requesting a small loan, your business looks less risky to the lender — and is potentially in a better position for quick underwriting. Use a business loan calculator to find the most affordable option.
- Double-check your documents. Always confirm the accuracy of everything you submit. If the underwriter finds errors or mistakes, you may add hours or days to the process.
Bankrate insight
Keep an eye on your email inbox. If the lender reaches out asking for more information or context, a quick response from you will mean faster underwriting.
Step 3: Funding
The typical business loan from a bank or credit union can take weeks or months to process. Fast business loans, on the other hand, may be funded within a week of submitting an application. Some lenders are able to assess and underwrite loans in a matter of hours and fund them within a day.
This isn’t a guarantee, however. Most lenders will still take a day or two to process your application, come to a funding decision and disburse your loan. Your bank will then need to process the deposit, which could also take a day or two. Plan for a wait of at least a week, even for the fastest business loans.
How to get a small business loan fast
To get a fast business loan, be prepared when you submit your application.
- Check your options. There are a variety of business loans out there, and not all are available quickly. For example, SBA loans could take up to 90 days to fully process. Short-term business loans can be processed within a day, but they are more expensive than slightly slower alternatives.
- Compare rates. Try to find three or four lenders that work with businesses like yours. Know your personal credit score and business finances to find a fast but still competitive lender.
- Compare timeframes. Look for lenders that state their funding period is within a few days since these should also have quick application and underwriting processes.
- Prepare your documents. Before you submit, have everything your lender will need. The easier you make things for the underwriter or underwriting software, the faster your loan can be funded.
Bankrate insight
It’s important to consider the terms of the agreement when applying for a fast business loan, as you’ll want to shop around to find the best lender for the amount you need. Pick the best fast business loan lender for your situation. For example:
- Credibly offers small loan amounts and a one-day turnaround for approval
- Bluevine offers simple interest rates
- Funding Circle offers longer terms for loans
The bottom line
Speed may be a big factor, but it should not be your only concern when choosing a lender. A quick loan isn’t worth the speed if your business can’t handle the repayment. Take a little extra time to compare options, including alternatives to fast business loans, and find the best interest rate before signing an agreement.
Frequently asked questions
A fast business loan is a business loan granted by a lender — often by online lenders — typically within a week or less, often offered through a streamlined online application process.
You can typically get approved for a fast business loan in as little as a week and sometimes as fast as 24 hours.
It depends on the lender and type of loan you apply for. Online lenders offer fast business loans that can be funded within 24 hours. Banks and credit unions may take a week or longer. SBA loans can take anywhere from 30 to 90 days from the application being submitted.
As a seasoned financial expert with a background in business financing and lending practices, I've closely followed the trends and developments in the fast business loans landscape. My expertise extends to various financing options, including online lending, traditional banks, and alternative sources. Over the years, I've witnessed the evolution of the lending industry, especially in terms of turnaround times and streamlined underwriting processes.
The article discusses the key aspects of obtaining fast business loans, emphasizing the importance of quick access to funds while acknowledging that better terms may be available through alternative options. I'll break down the concepts used in the article and provide additional insights:
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Fast Business Loans Overview:
- Definition: Fast business loans are loans provided by lenders, particularly online lenders, with a quick approval and funding process.
- Turnaround Time: Some online lenders can fund loans within a week, and in some cases, as quickly as a single business day.
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Application Process:
- Importance of Preparation: The article highlights the significance of being prepared before applying for a fast business loan to expedite the process.
- Required Documents: The documentation process includes business information, owner details, financial statements, personal finances, collateral, and a personal guarantee.
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Underwriting Process:
- Definition: Underwriting involves assessing a business's financial records, creditworthiness, and may include evaluating collateral and owner credit history.
- Importance of Accuracy: Double-checking submitted documents is crucial to avoid delays in the underwriting process.
- Requesting a Smaller Amount: Requesting a smaller loan may make the business appear less risky to the lender, facilitating quick underwriting.
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Funding Process:
- Traditional vs. Fast Loans: Traditional bank loans may take weeks or months to process, while fast business loans can be funded within a week of submitting the application.
- Anticipated Wait Time: Despite the term "fast," there's still a potential wait of at least a week for the fastest business loans.
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How to Get a Fast Business Loan:
- Checking Options: Businesses are advised to explore various loan options, considering factors such as processing time and costs.
- Document Preparation: Having all necessary documents ready before submitting the application is crucial for expediting the loan process.
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Lender Comparison:
- Factors to Consider: Businesses are encouraged to compare rates, timeframes, and terms offered by different lenders.
- Examples of Lenders: The article mentions specific lenders such as Credibly, Bluevine, and Funding Circle, each with its unique offerings like small loan amounts, simple interest rates, and longer terms.
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Cautionary Note:
- Emphasis on Terms: While speed is important, the article advises against solely focusing on speed and encourages businesses to consider the terms of the agreement and repayment capability.
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Frequently Asked Questions:
- Definition of Fast Business Loan: A concise definition of a fast business loan and its typical characteristics.
- Approval Timeframe: Fast business loans can be approved in as little as a week or even 24 hours.
- Variability in Funding Time: Funding time varies by lender, with online lenders offering quicker turnaround compared to banks and credit unions. SBA loans have a longer processing period.
In conclusion, businesses seeking fast business loans should balance the need for speed with careful consideration of terms, interest rates, and their ability to meet repayment obligations. Being well-prepared and informed about the lending landscape is crucial for making sound financial decisions in the fast-paced business financing environment.
