Emergency Business Loans for Small Businesses

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What an Emergency Loan Is
Types of Emergency Business Loans
SBA Emergency Loans (EIDLs)
Term Loan
Lines of Credit
Personal Loans
Business Cash Advances
Invoice Factoring
What to Consider with Emergency Funding for Small Businesses
First, compare the total cost to borrow, including interest rates and fees.
Next, look at 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. Depending what option you choose, you may also want to prepare to have your cash flow impacted by invoice factoring or merchant cash advances, since both take a bite directly out of your sales.
Finally, consider the time it will 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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