How to Get Fast Business Loans

Kevin BrouillardUpdated April 24, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

What with maintaining cash flow, managing employees, and covering bills, there’s a lot that goes into running a small business. And time can often be of the essence when you need to pay for these costs. At that point, a fast business loan may be appealing.Traditional loans may require extensive documentation, such as a business plan, years of bank statements, and proof of collateral, to get funding. And in some cases, approval and accessing funds can take weeks or more.Getting a fast business loan could be what lets your business stay afloat or act quickly on a growth opportunity. Taking a closer look at the different types of quick financing available can help if you’re considering whether a fast small business loan might be a good fit for you.

Types of Fast Business Loans

Fast business loans typically provide funding within a matter of days after you apply. While these loans offer quick approval and turnaround, this convenience may come with tradeoffs, such as higher interest rates and service fees. How fast you can get your funds and the costs involved will depend on which kind of small business loan you opt for. Here are some fast business loan options you may want to consider.

SBA Express Loans

The U.S. Small Business Administration (SBA) offers a variety of loan programs catering to different business types and funding needs. Although some of these loans may involve a longer application process, if you’re after quick-funding business loans, the SBA Express program could be a potential solution. Eligible businesses may request up to $500,000 and receive approval from the SBA in as little as 36 hours after applying. SBA Express loans are issued by a network of SBA-approved lenders. The SBA guarantees to fund up to 50% of the loan in the event that the borrower defaults. This reduces risk to the lender and allows them to offer more flexible qualification criteria.

Business Lines of Credit

Having cash on hand can be important for covering both day-to-day operations and emergency expenses. Instead of applying for financing whenever costs arise, a business line of credit allows you to access cash (up to an approved limit) whenever you need it. While it may take some time to set up a business credit line, once it's there, it’s a resource you can draw on at a moment’s notice.Once approved by a lender, you are allocated a maximum credit line and can withdraw funds up to that threshold to pay your bills, purchase inventory, or fill in gaps for working capital. You only pay interest on the amount you borrow and, once you repay those funds, they are available to borrow again.Recommended: Unsecured Business Lines of Credit for Startups

Equipment Financing

Equipment is integral to many businesses’ operations, whether it’s concrete mixers for a construction business or computers for an accounting firm. However, purchasing machinery and other vital equipment is often too costly for businesses to pay for out-of-pocket.If this is your situation, equipment financing may be a route to consider. This type of small business loan may charge less interest than conventional options, since the equipment itself is typically used as a form of collateral. Repayment terms are determined by the individual lender but usually span a few years. Getting an equipment loan is typically a faster process than obtaining traditional funding, though it can vary by lender.

Short-Term Loans

A loan’s term is the amount of time it will take for the borrower to pay the loan off completely by making regular payments. For short-term business loans, this duration can range from a few months to as much as 18 months. Short-term business loans are often a faster route to cash than long-term financing options. Since the repayment terms are shorter, lenders usually view short-term business loans as less risky so their requirements may be less stringent.Easier qualification helps speed up the process so that businesses can act quickly to maintain cash flow, buy inventory, and address other unexpected costs.

Invoice Financing

Delays in payments from customers and clients can lead to cash flow issues. Those, in turn, can delay you when you need to act on investment and growth opportunities. Instead of standing by, many businesses can borrow against outstanding invoices owed to them through a practice called invoice financing. In invoice financing, the lender loans you a large percentage of the face value of your unpaid invoices. As your customers settle their debts, you receive the rest of the invoice amount, minus the lender’s fees. This quick funding option is typically better suited to businesses that sell wholesale or let customers buy goods or services on credit. Otherwise, they may not have enough invoices on hand to finance.

Merchant Cash Advance

A merchant cash advance (MCA) can be a solution for a business that needs capital immediately to cover cash-flow shortages or short-term expenses. With an MCA, a financing company gives you an upfront sum of cash that you repay using a percentage of your debit and credit card sales, plus a fee. Often the way the financing is structured is that MCA provider automatically deducts a daily (or weekly) percentage of your debit and credit card sales until the advance is repaid in full.This quick access to cash generally comes at high cost. MCA companies charge a factor rate plus fees. When the factor rate and fees are converted into an annual percentage rate (APR) and compared to other business financing options, MCAs tend to cost considerably more. Recommended: How Does Merchant Cash Advance Consolidation Work?

Sample Lenders for Fast Business Loans

Not every lender can offer small business loans fast. For the most part, borrowers will be exploring online business loans from alternative lenders rather than banks. To give you an idea of what’s available, here’s a look at five frequently recommended quick-funding lenders (based on a Google search for “fast business loans” conducted on April 19, 2023).

Bluevine

Established businesses in need of immediate capital might consider getting a line of credit from Bluevine. If approved, businesses can get access to a line of credit up to $250,000 as fast as 24 hours. After withdrawing funds, businesses can make fixed weekly or monthly payments over six months or one year. As funds are repaid, more credit becomes available for future business needs. To qualify for a business line of credit from Bluevine, applicants must have been in business for at least two years, receive $40,000 in monthly revenue, and have a FICO® credit score of at least 650.

Fundbox

If your business is a startup venture or has less-than-excellent credit, easy approval business loans may be more challenging to come by.With Fundbox, borrowers with credit scores of 600-plus may be able to qualify for a business line of credit up to $150,000. Other eligibility criteria include: an annual revenue of at least $100,000 and proof that you’ve been in business for at least six months. You can apply online and get a decision in as little as five minutes. If your application is approved, funds may be available as soon as the next business day. Loan terms are either 12 or 24 weeks and follow a weekly repayment schedule. You only begin paying once funds are withdrawn, and there’s no penalty for repaying early. Recommended: Top Bad Credit Business Loans of 2023

Fora Financial

With a merchant cash advance from Fora Financial, you can borrow $5,000 to $1.4 million against future revenue. To repay the advance, the lender will automatically debit a fixed percentage of your daily or weekly receipts. That means that when business is good, you’ll be able to pay off the advance faster, but when sales dip, you can benefit from reduced payments.No collateral is required for a revenue advance from Fora Financial and you may be able to get approved even if you have bad credit. The only criteria they list is that you have provable revenue coming in. You can apply online and the lender will determine whether or not you’re approved within four to 24 hours. If approved, you'll receive your funds in one lump sum within 24 to 72 hours.

Triton Capital

Triton Capital is a loan marketplace that partners with financial institutions to provide quick funding to small businesses. The company offers access to equipment loans up to $250,000 with repayment terms anywhere from 12 to 60 months. They don't list qualification requirements on their site but you’ll need to submit your last three months of business bank statements and a quote for the equipment you’re looking to purchase to apply for equipment financing. Typically, loans are approved within four hours. If approved, you can receive funds within one to two business days. Business owners can also access working capital loans and SBA loans through this platform.

OnDeck

OnDeck offers quick funding to small businesses through their term loans and lines of credit. Their term loans range between $50,000 and $500,000 and carry a 24-month repayment term. If you’re approved, you can have access to funds on the same day.A line of credit from OnDeck can provide more flexibility in terms of when and how you access funds but borrowers may only apply for credit lines between $6,000 to $100,000. To qualify for a term loan or line of credit with OnDeck, a business must meet the following criteria:

Have been in business for at least one year
Have a minimum credit score of 625
Show at least $100,000 in annual revenue

Comparing Fast Business Loans

For businesses in a cash crunch, a fast business loan could be a funding solution to cover day-to-day expenses or seize an investment opportunity. Before settling on a quick business loan, it’s important to compare the benefits and drawbacks of your financing decision. Fast funding options often come with high interest rates and fees, so you’ll want to make sure the benefits outweigh the costs. If you’re curious about what type of fast business loan you might qualify for, Lantern by SoFi can help. With our online debt financing marketplace, you can search for loans without scouring the web and checking multiple sites. With one short application, you’ll be matched with a loan offer that meets your company’s needs and qualifications.Let Lantern help you find the right financing solution for your small business.

Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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About the Author

Kevin Brouillard

Kevin Brouillard is a Returned Peace Corps Volunteer, educator, and personal finance writer. His work has appeared in online publications such as Earth Island Journal, Jetsetter, Oyster.com, and Tripsavvy. Kevin covers an array of financial topics for SoFi, including loans for students and small businesses.

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