If you’ve decided an instant business loan is right for you, here are the basic steps to get a fast business loan.
1. Decide how much you need
Create a detailed business budget to determine how much you need to cover essential or ongoing expenses. Remember, fast loans for businesses typically have higher interest rates and less favorable terms. If you need to tackle long-term projects, it could be worth waiting until you qualify for an SBA or long-term business loan.
2. requirements for quick business loans
While business loan requirements vary by lender and loan type, most lenders will typically review the following criteria to determine your eligibility for quick capital funding:
Credit score: Your personal FICO Score and business credit report are critical in determining your creditworthiness. While alternative lenders typically require a minimum credit score of 500 or higher, having a higher score can help you secure a lower interest rate.
Time in business: Most lenders require a steady track record of one to two years in operation before approving your loan application — although some private business lenders finance startups after at least six months in operation.
Annual revenue: You must show reliable income to qualify for small business financing. Some quick business lenders accept annual revenues as low as $50,000, while others require gross yearly sales of $480,000 or more.
You can use LendingTree Spring to check and monitor your credit score before applying for a fast small business loan to know your options. Boosting your credit score can help improve your chances of approval while potentially securing a lower interest rate.
3. Compare fast business lenders
Once you’ve narrowed down your best fast loan options, pay attention to each lender’s details. Some lenders advertise low interest rates, only to add extra fees later in the application process. Read business lender reviews to ensure a potential lender fits your current and future business needs.
Beware of scams
Don’t work with any lender who tries to pressure you into borrowing more than necessary or those offering no-credit-check business loans. Always look for signs of
predatory lending and report any suspicious behavior to the
Better Business Bureau.
4. Gather required documents
Gathering essential business documents in advance can help speed up the application process. While requirements will vary, it’s a good idea to have the following paperwork ready to go:
5. Apply for a fast business loan
The application and approval timeline for fast loans for business generally happens within a few business days. You may need to provide additional documents after hitting submit, but most online lenders make a final decision within minutes.
Make sure to thoroughly review the business loan agreement before signing on the dotted line. If you don’t understand some of the wording or the repayment schedule, ask for clarification before proceeding.