As every business owner can attest to, business moves at a fast pace! There are new challenges and opportunities virtually every day. Having access to fast business loans can be a crucial element in addressing those rapidly changing demands.
The following is a quick guide to help you find fast business loan financing for your business.
Table of Contents:
- 1. Fast Business Loans Can be Crucial to Your Success
- 2. The High Cost of a Lost Opportunity
- 3. The Danger of Delays
- 4. Bank Financing
- 5. SBA Loans
- 6. Best Fast Business Loan Programs
- 7. Choosing Your Lender
Fast Business Loans Can be Crucial to Your Success
Fast business funding provides you with the working capital essential for daily business operations to run smoothly. It allows you to cover payroll, vendor payments, taxes, rent, and other day-to-day expenses.
It also allows you to take advantage of growth opportunities such as adding staff, upgrading facilities, expanding your product line or taking advantage of time sensitive vendor discount offers.
The High Cost of a Lost Opportunity
Lost opportunities can cause a substantial financial loss to your business. A lost opportunity cost is the estimated profit that a business could have achieved if they had access to the working capital they needed, to take advantage of an opportunity to create additional revenue and profits.
An example of how to assess this type of financial loss would be the following scenario:
Let’s say that you own a contracting company. If you add another vehicle and employee to your staff, you estimate that you could generate an additional $20,000 in revenue every month. Divide that monthly figure by the number days in the month, and you now have an estimated daily figure that it’s costing your business each day you delay getting an additional employee.
Or, you may receive an offer from a vendor of limited-time discounted pricing that would save you thousands of dollars if you had the funds available to take advantage of that offer. Taking swift action to address either of those scenarios would result in business growth and profit.
The Danger of Delays
There are many situations that need to be dealt with quickly, because delays can cause damage to your reputation or even business failure. Having adequate capital gives you the ability to deal with unforeseen expenses like repairing or replacing equipment.
What if you own a restaurant and you have an oven go down or the air conditioning in your dining room goes out in the middle of the Summer? What if you’re a manufacturer and one of your production machines needs to be repaired or replaced before production can recommence? Or how do you pay your employees and vendors if your biggest customer or account suddenly becomes a slow-paying customer? How long will you be in business if you can’t afford to pay your people?
None of these examples are very appealing. But they are all too common challenges that business owners incur on a daily basis.
So what’s the best source to obtain fast business loans? Banks? Probably not. Here’s why…
Most business owners start out looking to traditional banks for financing. However, according to 2019 finance statistics, big banks only approve 27 percent of small business loans. It’s obvious by the small approval rate that their qualification criteria is stringent and that most business owners don’t qualify.
And even if you do manage to get approved, the loan process is quite lengthy (weeks or months), which most of us would never consider to be a “fast business loan”. They also require a large amount of paperwork and collateral. Your personal and business credit score weighs heavily in the approval equation as well.
Another important limitation to keep in mind when dealing with banks is that the use of loan proceeds is usually severely restricted. So if another challenge presents itself shortly after funding, the terms of the loan would prohibit any use of those funds except the express purpose in your loan application.
The Small Business Administration offers several different loan programs to assist small businesses. The SBA is not a direct lender. They are a government agency that insures a significant portion of the loan amount from a bank. This added protection for the lender entices them to make loans they would not ordinarily make without the reduced risk. The result of which is that more businesses receive funding than would have without government backing.
But there are serious limitations and issues inherent in the SBA loan process. There’s a much higher level of scrutiny, and more rigorous requirements than traditional banks. Their approval process is typically much longer than banks. And there is only a limited amount of funds available for these programs. This leaves most businesses without the funding they need.
Best Fast Business Loan Programs
There are a variety of funding options available, but the most flexible and fast small business loan programs are working capital loans and business lines of credit.
Working Capital Loans
A working capital loan is a fast and convenient solution for business owners that need cash on hand quickly. This top funding option gives you flexibility and control over your loan that big bank loan programs simply do not.
Unlike banks, a good alternative lender should have a simple application, fast approval and funding (within 24-48 hours), a high approval rate and provide a one-on-one relationship with a funding expert to help you through the lending process. And no collateral will be necessary.
And regardless of whether you want to take advantage of a growth opportunity to create more revenue, want extra cash-flow, or need to make an important repair, you’ll be free to use the loan proceeds anyway you’d like.
Business Line of Credit
A business line of credit is another top funding option. This loan program allows small business owners to draw from an approved amount as needed. Having a business line of credit provides the flexibility safety net that businesses need.
A business line of credit lets you access funds as needed and only pay fees on the funds used. If your LOC is $100,000 and you only use $20,000 of those funds, you only pay fees on the $20,000 that you’ve accessed, not the $100,000 that you were approved for. And you still have access to the balance.
A Working Capital Loan and Business Line of Credit are the top two funding options that small business owners rely on to give them the edge they need to compete in a competitive marketplace.
Choosing Your Lender
Finding the right business funding source for your business can be the difference between success and failure. At Mulligan Funding we believe that a lending partner should provide:
- A simple, one-page loan application
- Approval and funding within 24-48 hours
- High approval rates
- A highly personalized one-on-one relationship with a designated funding expert to help you through the entire lending process
- Flexible Working Capital Loans and Business Line of Credit programs
- Take the time to understand your business needs and concerns in order to tailor a fast business loan for your specific situation
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.