Guide to Emergency Small Business Loans

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What an Emergency Loan Is
Pros and Cons of Emergency Loans for Businesses
Pros
Cons
6 Types of Emergency Loans Used for Businesses
1. SBA Emergency Loans (EIDLs)
2. Emergency Term Loans
A short-term loan
A medium-term loan
3. Emergency Lines of Credit
4. Personal Loans
5. Business Cash Advances
6. Invoice Factoring
What to Consider with Emergency Funding for Small Businesses
Compare the total cost: Look at how much it will cost you to borrow, including interest rates and fees. Scrutinize how repayment works: Some lenders require you to enroll in an auto draft program that deducts money from your business banking account on a regular basis. Payments may be due monthly or as frequently as weekly, which could potentially cause a cash crunch.
Consider timing: How long will it take to apply for and get your funding? Different emergency business loans proceed at different speeds. If getting funds fast is your priority, you may be limited to higher-cost solutions.
Tips for Applying for Small Business Emergency Funding
Bank statements for both your business and personal finances Tax returns for both your business and yourself Business-related legal documents Revenue statements Accounts payable and accounts receivable
Finding a Business Emergency Lender
Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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