It is next to impossible for startups business to get business loans from banks and credit unions. New enterprises are the riskiest to fund, and lenders require enough reason to believe that you will be able to return their money on time. As a result, start-up loans and small business loans are costly. The process of loan application and approval is rather slow. The slowness is deliberate since it involves tons of paperwork and document verification. Banks are nervous about new business loans and same day loan approvals are the oasis in the desert.
The idea of sameday business loans is almost fantastic. Business owners and banks often believe that the need for immediate cash is a sign of irregular cash flow. However, certain business opportunities require emergency cash, in bulk. The average two-week approval process can mean a loss of the investment opportunity. Many new entrepreneurs turn to their 401(k) funds, personal loans and payday loan sources for urgent money. However, since none of these are ideal for business needs, their interest rates and repayment plans are not suitable for business cash flows. You need a source of capital that is fast, smooth and flexible. The APR should be amicable, and the interest should not cost you more than the principal amount.
The most likely source of fast business loans is the alternative market. Banks and credit unions shy away from financing businesses within 24 hours due to the extensive paperwork involved and the high risks. You can try the following for accessing instant cash for your entrepreneurial requirements –
Unsecured business loan
Unsecured loans do not include collaterals and are faster than traditional loans. It gives you access to fresh funds that do not hold your assets as security. Always proceed by agreeing to a loan amount in advance, so when the time comes, you need to put in the request for the amount with the prospective lender.
It is a line of credit that can give you access to instant business funds. Stock financing will allow you to buy goods and equipment in bulk. It supports partnerships with bigger corporations through the supply chain.
There are always impressive amounts of capital tied to business assets. You can always take out a loan against the machinery you don’t use or surplus vehicles and other equipment that can act as expensive collaterals for instant capital.
Although this process is a little costlier than the others, it is one of the best ways you can access the money that you have already earned. You can sell your entire month’s invoice or a part of it for a substantial advance from the merchant advance companies. These companies will exact the amount from your vendors the next month.
Always remember to keep the number of credit lines and lenders to a minimum. An emergency business loan should be able to cover the costs of new investments only. Managing multiple lines of credit, business credit cards and small loans can become a hassle for any business owner.