This blog was last updated on May 17, 2021.
As most business owners can attest to, business moves quickly! There are new challenges and opportunities every day, and having access to fast business loans can be a crucial element in keeping up with business demands.
The following is a quick guide to help you find fast business loan financing for your business.
Fast Business Loans Can be Crucial to Your Success
Accessing business funding quickly can provide you with the working capital needed to keep daily business operations running smoothly. With a business loan, you can cover payroll, vendor payments, taxes, rent, and other day-to-day expenses.
Business lending 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 Cost of a Lost Opportunity
Lost opportunities have the potential to cause a financial loss to your business. An opportunity cost is the estimated profit that a business could have achieved if one opportunity was chosen over the other.
In terms of a working capital loan, if not having the necessary funds is holding you back from acting on business plans, the opportunity cost is whatever opportunities you aren’t able to act on.
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. Next, divide that monthly figure by the number of days in the month and you now have an estimated daily figure that is 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 could result in business growth and profit.
The Danger of Delays
Some situations need to be dealt with sooner rather than later. Otherwise, some delays can have adverse effects on your business resulting in missed opportunities. Having adequate capital gives you the ability to deal with unforeseen expenses like repairing or replacing equipment.
Suppose you own a restaurant and an oven breaks, hindering your kitchen staff’s abilities. Or, what if you’re a manufacturer and one of your production machines needs to be repaired or replaced before operations can resume?
Neither of these examples is appealing, but they are all possible challenges that business owners can incur. So what are your options when you need to obtain fast business loans?
Many business owners begin their search for business financing with their bank. However, according to recent findings, large, traditional banks are approving fewer business loans – about 50% less in 2020 than compared to the previous year.
And for businesses who are approved for a business loan through their bank, the approval process can be lengthy – sometimes taking weeks or months.
In addition to a longer approval process, larger, traditional banks can also require:
- Minimum of two years in business
- Good business and personal credit
- Large lump sum monthly payments
And, along with the above, the loan proceed use can be restricted depending on the bank you apply for business financing through.
The Small Business Administration (SBA) offers several different loan programs to assist small businesses. But, rather than acting as a direct lender, the SBA is a government agency that facilitates loans through banks or other approved lenders.
When the SBA approves a business for funding, they also agree to reimburse the lender for a percentage of the funds in the event that the business that received the financing fails to pay it back. This reduces the risk for the lender and can entice them to lend to businesses they otherwise wouldn’t.
But there are limitations and issues inherent in the SBA loan process. Depending on which SBA loan you’re applying for, the approval process can often take anywhere from one month to six months. There also can be a limited amount of funds available for these programs, which can leave some businesses without the funding they need.
For businesses that cannot receive an SBA loan are waiting on the approval process, an SBA Bridge Loan could be a great solution.
Alternatives for Fast Business Loan Programs
There are a variety of funding options available to consider when searching for business financing. Some alternative options to the above programs that are both flexible and fast are business lines of credit and working capital loans.
Business Line of Credit
A business line of credit is another funding option for small businesses. This loan program allows small business owners to draw from an approved amount of funds as needed. Having a business line of credit (LOC) provides the flexibility and safety net that some businesses desire.
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 rather than the $100,000 that you were approved for. Plus, you still have access to the balance.
Working Capital Loans
A working capital loan is a convenient solution for business owners that need cash on hand quickly. This funding option gives you flexibility and, sometimes, more control over your loan than those through large, traditional big banks.
An alternative lender typically has a simple application process, fast approval and funding times, and other benefits such as not requiring collateral. For example, a working capital loan through Mulligan Funding offers a wide variety of benefits that might be appealing to business owners looking for faster access to funds*.
And whether you want to take advantage of a growth opportunity to generate more revenue, need extra cash flow, or are interested in investing in new equipment, you can use a working capital loan through Mulligan for any business purpose1.
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 seamless application
- Approval in as soon as a few hours
- Funding as soon as the business day after approval
- A personalized one-on-one relationship with a designated loan advisor to help you through the entire process
Our team takes the time to understand your business needs and concerns in order to tailor a 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.