The best financing options for easy business loans
There are many different ways to make your work easier both at home and in the workplace. When it comes to business, many small business owners prefer a faster way to access cash to meet their short-term needs. But it takes much time and effort to be approved for a traditional bank loan. In fact, majority of small business owners in the U.S fail to qualify bank loans considering that they require perfect credit scores and you may also have to issue an asset as collateral. If you have a startup business, such qualifications are almost impossible to meet. And even if you meet these requirements, you should also be prepared for long documentation and paperwork processes which follow with several weeks of waiting to have your loan approved. As much as bank loans attract low rates of interest, they may not be a good option for businesses that need immediate business financing to meet their short-term needs. But can business owners have access to easy business loans?
Is it possible to get easy business loans with a faster approval rate?
If you have been in business for some time, you may have experienced the long waiting period and tiresome paperwork processes that come with bank loan applications. Even with these long paperwork processes, you may end up being denied a loan. This makes the alternative lending industry a great option for providing quick business loans with flexible lending criteria. Online business loans have especially made financing possible for different types of business regardless of the years in business or personal credit score.
Types of easy business loans
As a small business owner, there are many lenders who are willing to provide small business loans for your business. But it is also important to find out the best loan that can work well for your business needs. Here are the different types of easy business loans you can choose from;
- Merchant cash advance
During your search for the best business loans, you might have come across the term merchant cash advance. This is because it is among the easiest ways to secure working capital for your business. With the merchant cash advance option, the business lender provides a lump sum amount that needs to be repaid with a percentage of the daily credit card transactions. The rates are expressed in factor form ranging from 1.14 to 1.48. Merchant cash advances are easy to secure, most lenders requiring a personal credit score of at least 400. You also should be in business for more than 5 months with minimum annual revenue of $75,000. Businesses can receive funding within 7 days.
- Short-term loans
This is also a great option for businesses that need quick and easy funding. You can easily qualify for a short-term loan if you have a personal credit score of 500+, 1 year business history and annual revenue of at least $100,000. Businesses can receive the funds in as soon as one business day. Most short-term loans attract an APR of 10% or more and have a short repayment term of between 3 and 18 months.
- Invoice financing
Invoice financing can be a great option for borrowers who have cash flow problems caused by delayed payments from customers. With this borrowing option, you will receive an advance amount, which is between 70%-80% of the invoice value. The amount is provided within a single business day. After the customer pays, the remaining percentage less a factoring fee is forwarded. Invoice financing has an APR of 3%+, including a percentage that is charged every week until the customer clears their invoice. Invoice financing companies are mainly interested in the value of your invoices and not personal credit scores or the number of years in business. This makes it among the easiest loan options to qualify for.
- Personal loans
Personal loans can also be used for business purposes. They are a good option for startups with no business history or low annual revenue. The loan approval depends on your personal credit score, which means that you should have good credit to qualify for a personal business loan. Businesses can borrow up to $50,000 depending on the lender. Failure to repay the loan on time can also damage your credit score.
Best small business loans 2018
Kabbage can be a good option for business owners who need small business finance for working capital. The lender requires an average personal credit and offers lines of credit ranging from $2,000 to $250,000.
To qualify for business funding you should have been in business for at least 12 months with annual revenue of $50,000+. For online application, the process takes less than 10 minutes with no documentation required. The funds are approved in a few business days. The sooner you avail all the required documents the faster you receive the funds. Lines of credit have an APR of 24%-99%. There are no prepayment penalties, meaning that you can repay the loan early to avoid the interest charges.
OnDeck fast business loans work well for businesses that need small business financing for working capital or expansion purposes. With this borrowing option, you can borrow term loans of between $5,000 and $500,000 that is repaid on a daily or weekly basis for a period of 3-36 months. You can also borrow credit lines up to $100,000 that is repaid on a weekly basis for more than 6 months. You should be in business for at least one year with minimum annual revenue of $100,000 to qualify for funding. You also should have a personal credit score of 500+. If you want to apply for a line of credit, you should own a larger percentage of the business and have a credit score of more than 660. The application process takes less than 10 minutes and you can receive the funds in a few business days.
OnDeck term loans have an APR of 9%-99% with an origination fee of 2.5% for first-time applicants. There are no prepayment fees. Lines of credit attract an APR of 14%-40%. The term loans can a great option for businesses that need large amounts of funds for business expansion, purchase of new equipment, hiring employees among other purposes. You can use OnDeck lines of credit for working capital or pay for unexpected costs.
If your business has cash flow challenges, for instance when customers take longer to pay, BlueVine provides two lending options to meet your short-term business needs. With their line of credit, funds can be approved in as little as 12 hours. Invoice financing is also available and once approved, you can receive funds within 24 hours. To qualify for a line of credit, you should have a personal score of 600+. The loan amount ranges from $5,000-$250,000 with an APR of 15%-78%. The loan term is between 6 and 12 months. The company factors invoices valued between $20,000 and $5M with an APR of 15%-68%. BlueVine can be a good option if you need fast cash to fill a cash flow gap caused by customers taking too long.
- Credibly Capital
The lender specializes in providing fast financing for working capital and business expansion. Credibility easy business loans can be a good option for business owners with low credit score. Compared to other lending options, the company has flexible eligibility criteria in terms of credit requirements and minimum time in business. Businesses can borrow between $10,000 and $400,000 with an APR of 8%-20%. The loans have a term of 3 years.
How to get a business loan
After applying for an easy business loan, most lenders will ensure that you receive the funds within 7 days. But there are also ways to make your application process much faster and easier. When applying for a loan, you first need to be prepared by ensuring that all the required documents and information are available.
- Have your information ready
Applying for an easy business loan can take only 10 minutes, but if you do not have the right information at the moment, the process may take much longer. Some of the information that most online lenders may require include your social security number, 3 months bank statements, business ID tax among other information.
- Apply the right type of loan
One advantage of easy business loans is that they are easily accessible. But this does not mean that any type of business loan can work well for your situation. If you need urgent cash to fill a cash flow gap, working capital loan or invoice factoring can be the best option at the moment. But the funds may not be used for long-term business needs. For a company with many credit card transactions, you may consider merchant cash advances. If you want a flexible repayment schedule, term loans and lines of credit can be a good alternative.
- Find the right lender
Once you decide that a certain loan option can work well for your business, taking time to research on different lenders is also important. As much as there are many online lenders who provide small business loans, the terms, maximum amount and interest rates are different. You obviously would want to work with a lender who offers affordable rates of interest, understands your business needs and can provide the loan as soon as you need it. Lenders also have different requirements and it is also prudent that you meet all the eligibility criteria to increase your chances of having your loan approved.
Applying for easy business loans is a fast and easy way to acquire working capital for your business. Online lenders provide easy business loans ranging from $5,000 to $50,000. Besides, it only takes a few business days to have the funds in your bank account. Compared to traditional lenders, easy business loans have low qualifications. In fact, you don’t need to worry about providing any of your business assets as security for the loan and startup businesses can also qualify for funding. You only need to have all your documents ready and research the best lender who can provide the amount you need at an affordable cost.