Best Fast Business Loans in 2019

Whether expanding, in need of updated equipment/materials, or in order to cover unforeseen circumstances, most small businesses and entrepreneurs find themselves needing extra capital or quick funding.

Luckily, in most cases acquiring funding for small businesses can be quick and simple, taking as little as 2 days.

Helping streamline and navigate the process to approval, below are some recommendations:

LenderLowest APRQualificationTime in BusinessAnnual Revenue

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5%ESTIMATED APR500+MIN CREDIT SCOREAt least 6 monthsAt least $100K

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5%ESTIMATED APR500+MIN CREDIT SCOREAt least 6 monthsAt least $100K

1. Quick Working Capital Business Loans

Designed to meet short term needs working capital loans can require little paperwork and may be available to poor credit applicants.

They offer anywhere between 2,500 – 250,000 for a variety of purposes, from taking a growth business opportunity to covering a slew of operating costs.

With terms from 3- 8 months working capital loans can minimize the effects of short-term difficulties.

Interest rates vary significantly on average from 7% - 99%, some may not even require collateral, but daily payments will have to be made but.

Even a well run business can find themselves in rocky waters with negative working capital that may require a working capital loan to steady their course.

2. Get Financing Fast with a Business Line of Credit

Establishing a business line of credit can substitute a fast business loan. An active line of credit, can serve as an emergency fund allowing you access anytime a need may arise.

A business line of credit gives you a pre-set amount of money at your disposal, anywhere between $10,000 - $1 million for growth or unforeseen expenses. At an interest rate of 7% - 25% with repayment options from 6 months to 5 years.

A key advantage to having a line of credit available as opposed to a credit loan is that you only pay interest on amounts you are currently borrowing while still having access to additional pre approved funds without the need to apply for an additional loan. And once funds are repaid they become available for re-borrowing as with a credit card.

The drawback is that a lender may close your line of credit or reduce the amount at anytime, cutting you off from funds when needed.

Additionally, some lenders may require updated financials to maintain the line of credit, as well as collateral.

3. Short Term Business Loans

In a pinch and need a lump sum fast, a short term business loan can be a good choice if you’re able to repay within 3 to 18 months.

Based on your company’s financials and creditworthiness. You can borrow funds from $2,500 to $250,000 depending on the lender, due to the limited repayment period.

Downside with these types of loans is that they can be expensive and carry higher rates similar to credit cards.

4. Fast Business Loans for Financing Equipment

Working in an industry that requires the use of costly equipment that may need emergency repair or replacement can require equipment financing.

Minimizing downtime to maintain revenue flow, replacing faulty equipment is essential. With average approval rates at around 60%, choosing an online lender will certainly take less them a traditional bank.

On average a heavy equipment loan term is 7 years, yet can run as long as the estimated life of the equipment. With the equipment serving as collateral, interest rates range from 8%- 30% a year

A 10%- 20% down payment may be required, yet some loans are available for the full value of the equipment.

Avoid putting yourself at a great personal risk by dealing with lenders that require your home or savings account as collateral.

5. Invoice Factoring Can Get You Business Capital

By using a finance company, invoice financing allows for a B2B company to acquire a lump sum payment in exchange for unpaid invoices, 50%-90% of their total value.

Once payment of the invoice is received from the customer by the finance company, you receive the remaining value of the invoices lest the company’s fees. Additional fees may apply and they borrowing fees may be higher than with other forms of financing.

Additionally, you will be required to pay a 3% factor rate weekly while waiting for your customers to pay the invoices. And you must be able to make daily or weekly payments that are factor rate based as opposed to APR, reflecting the cost of borrowing.

Factoring Fast Business Loans – How It Works

These loan applications are relatively easy, as this type of financing is more a service than a traditional small business loan.

For instance, taking out a $50,000 loan at a factor rate or 1.15 will leave you with $57,500 owed.

For a term of 12 months, with 264 payments per business day required, your looking at roughly $218 per day.

Converting the factor rate to an annual percentage rate will allow you to compare the pricing of other loans.

One must take into consideration, if outsourcing invoice collection will affect your client relationships; as the chosen company will be contact your customers and overseeing your collection.

A key point to keep in mind is that this form of borrowing is only an option if you can actually rely on your customers to pay their invoices and the financing company can collect.

6. Fast Get Funds Fast with a Merchant Cash Advance

An MCA or Merchant cash advance allows you to get a lump sum from a lender by selling a portion of your projected future revenues.

Similar to invoice financing, you will pay a factor rate instead of an interest rate which typically ranges from 1.14%- 1.18%, with available advances of $2,500 - $250,000.

Repaying the loan over 2 months may be extremely high, yet repayment over 12 months may have a high yet reasonable APR.

You will need to provide bank and merchant processing statements to determine your qualifying sum, personal credit may be factored in.

Depending on the term the APR may be quite high, and payments are calculated automatically based on fluctuating sales volume from a daily merchant account.

If your business goes under a merchant cash advance may be a good option if you are in dire straits as it does not need to be repaid as with a loan.

A fast business loan maybe less expensive if cost is a factor.