If you decide a 24-hour loan is right for you, here are the general steps to take to get a small business loan.
1. Determine your timeline
You might be able to delay certain business expenses, but some situations can’t be postponed. For example, a broken pizza oven could be disastrous to your daily profits if you run a popular restaurant. However, you will likely find better rates and more flexible repayment terms if you’re able to delay financing, such as opting for an SBA loan.
2. Review your qualifications
Business loan requirements can vary by loan type and lender. However, most lenders usually look at the following when reviewing your small business loan application:
- Credit score: Check your credit score before applying to see where you stand. Some same-day business lenders accept scores as low as 500. However, having a higher score can help you secure a better rate with more flexible terms.
- Annual revenue: Many lenders want to see your business generating a steady cash flow before approving your loan application. In general, you need between $50,000 and $480,000 in yearly sales to qualify for same-day business loans, although lenders like Taycor Financial don’t have any minimum revenue requirements.
- Time in business: You typically need to be in business for at least a year or two to qualify for small business financing. However, some same-day business lenders have less stringent eligibility criteria and will work with startups or those with only a six-month business history.
3. Compare lenders
Once you have a list of the best same-day business loans that fit your needs, pay attention to each lender’s details. While some lenders advertise exciting offers, these so-called deals often come with hidden fees and strict prepayment penalties. You can read business lender reviews to ensure a lender is legit before signing on the dotted line.
Beware of scamsWatch out for lenders trying to pressure you into borrowing more funds than you need or companies promising “no-credit-check” business loans. Stay up-to-date on the signs of predatory lending and report any suspicious activity to the Better Business Bureau.
4. Gather required documents
Getting essential paperwork in order can speed along the application process, ensuring you receive your funds within 24 hours. Here is a general list of what you might need to provide when applying for a small business loan:
5. Apply and review
As the name implies, same-day business loans can get approved and funded within 24 hours. However, this timeline isn’t guaranteed since many variables determine your overall funding speed. For example, if you submit your application late in the day and miss a few critical documents, you might have to wait an extra day or two before approval.
Thoroughly review the business loan agreement before moving forward. Remember, same-day loans don’t always offer the best rates and terms. You want to make sure you can handle the debt before agreeing to the terms.