The best fast business loans of February 2024, for funding in hours to days

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The best fast business loans of February 2024, for funding in hours to days

Posted by Admin February 16, 2024 Bussiness

Fast business loans are all about speed: It often takes just a few minutes to submit the application and upload documents, and you may get a lending decision within a few hours. If approved, the funds could land in your bank account within a day or two.

These loans can help your business pay for emergency costs, snap up an opportunity that requires cash or cover bills when invoices go unpaid. While they can come with a few pitfalls — like higher APRs and shorter repayment terms — the best fast business loans offer flexible eligibility requirements, large loan amounts and quick funding timelines.

Methodology

If you’re seeking a business loan with fast approval, you know you want a fast-acting lender. But to determine the best lenders, our editorial and data research teams considered 21 loan features that go beyond speed. Of the 28 financial institutions considered, eight separated themselves from the pack. See our full methodology below.

Number of companies reviewed: 28
Number of data points analyzed: 588
Number of features we considered: 21
Number of primary data sources used: 25

Loan amount

$5,000 to $250,000

Via OnDeck’s Website

Funding Circle

Why we picked it

If you submit an online application with Funding Circle, a personal account manager reaches out to you within an hour to discuss your needs and gather documents. The lender reviews your application and makes a decision in as little as 24 hours; if approved, you receive funding within the next business day.

Business owners can apply for 7(a) SBA loans, term loans ranging from six months to seven years and a line of credit. (Though the term loans and line of credit can be funded quickly, Funding Circle says it may take 13 days to get SBA 7(a) loan approval.) The funds can be used for most business purposes, and repaying the loan will help you build business credit.

On the downside, Funding Circle has strict eligibility requirements, including a minimum time in business of two years, personal credit scores of at least 660 and limits lending to certain industries (including nonprofits and for-profit businesses relating to real estate, weapons, gambling, marijuana and p*rnography). And while it’s not required, Funding Circle says its average borrower has 11 years in business and $1.4 million in annual sales.

Pros

Funding within two business days
Builds business credit
Loan funds can be used for most business purposes

Cons

Longer funding timeline for SBA 7(a) loans
Strict eligibility requirements
High borrowing minimum for term loans ($25,000)

Who should consider it

Well-established businesses with strong credit and high annual revenue

*Rate as of Feb. 12, 2024

Upwise Capital

Best for large loan amounts

Why we picked it

Upwise Capital offers a dozen funding options, including SBA loans, term loans, lines of credit, equipment financing and more. Loan amounts range from as little as $5,000 to as much as $20 million (or $200 million for real estate financing), depending on the loan. And while business owners in the cannabis and CBD industries often struggle to secure funding, Upwise Capital offers an entire line of loan options specifically for these business types.

Many of Upwise’s loans can be funded the same business day or within 48 hours, and it’s relatively easy to qualify. Businesses typically need at least three months in business, a 500 minimum credit score and bank statements from the previous four months. However, the annual revenue requirement of $250,000 or more could put some businesses out of the running.

Pros

Wide range of borrowing amounts
A dozen funding options
Flexible eligibility requirements
Open to some higher-risk industries

Cons

Longer funding timeline for some loans
High annual revenue requirement

Who should consider it

SBG Funding

Why we picked it

If you apply with SBG Funding, which offers six types of business loans, the lender says you’ll receive a lending decision within 12 hours. If approved, you’ll get your funds as soon as the same day. The lender boasts of an 85% approval rate among its applicants.

With the exception of equipment financing and SBA loans, all of SBG’s funding options are unsecured, meaning you won’t have to post collateral (that would be vulnerable to seizure if you fell behind in repayment). To qualify, you must be in business for at least six months and have a minimum FICO score of 500.

Although SBG Funding has many positives, it has a relatively high annual revenue requirement of $250,000. And some loans come with prepayment penalties in undisclosed amounts, so you may owe fees if you pay down your debt early.

Pros

High rate of loan approval
Several funding options
Can get loan funds within the same business day
High maximum borrowing amount ($10 million)

Cons

Some loans come with prepayment penalties
Strict payment schedule for revenue-based financing
Relatively high annual revenue requirement

Who should consider it

Businesses that aren’t planning to pay down their debt early

*Rate as of Feb. 12, 2024

SMB Compass

Best for low starting APR

Why we picked it

SMB Compass offers several types of financing, including term loans, revolving lines of credit, SBA loans, equipment financing, bridge loans, inventory financing and more. Many of these options can be funded within one to two business days once you apply, but SMB’s standard term loan can take five to seven days to fund.

The lender’s asset-based loans have the lowest starting APR. These loans also take a bit longer to fund (10 to 14 days) and require collateral, but their lower interest rate may help you save money.

To qualify for many of SMB’s loans, you need at least two years in business and bank statements from the previous three to six months. SMB Compass also prefers applicants with a solid business plan, good credit and a strong cash flow.

Depending on the type of financing you apply for, loan amounts range from $5,000 to as much as $100 million. Also, businesses in certain industries may not qualify, but SMB Compass doesn’t specify what they are.

Pros

Many financing options
Transparent eligibility criteria
High maximum borrowing amount ($10 million)
Competitive APRs

Cons

Doesn’t specify ineligible industries
High minimum time in business
Slower funding on term or asset-based loans

Who should consider it

Established companies seeking asset-based financing at low rates who don’t need the funds immediately

*Rate as of Feb. 12, 2024

Triton Capital

Best for repayment term flexibility

Why we picked it

When you apply for a working capital loan or equipment financing through Triton Capital, you’ll get a lending decision within two to four hours; if approved, you’ll receive funds within one to two business days. SBA loans take longer, up to 15 days, but the timeline is faster than many other lenders offer with SBA options.

Triton specializes in equipment loans of up to $250,000 with repayment terms ranging from 12 to 60 months. You can choose to pay monthly, quarterly, annually, semi-annually or seasonally, which offers flexibility for businesses with fluctuating revenue. You’ll need to be in business for at least three months to qualify for the working capital loan or equipment financing and four years minimum to be considered for the SBA loan. Funds can be used for any (legal) business purpose.

The main downside to Triton Capital is that its website is missing some key information, such as specific eligibility criteria, maximum APRs and a schedule of fees.

Pros

Many repayment options
Low starting APRs
Just three months in business required
Fast funding for various loans

Cons

Maximum borrowing amount is relatively low compared to competitors
Doesn’t disclose maximum APR, eligibility requirements

Who should consider it

Borrowers seeking equipment financing and flexible repayment terms

*Rate as of Feb. 12, 2024

Credibly

Best for fast pre-qualification

Why we picked it

Credibly says borrowers can get pre-qualified within 10 minutes and receive a lending decision within four hours of submitting an application. If approved, you may receive funds as quickly as the same business day.

OnDeck

Best for businesses with lower revenue

Why we picked it

OnDeck offers business term loans and revolving lines of credit with several perks, including the possibility of same-day funding if you apply for a term loan by 10:30 a.m. ET on a business day.

With OnDeck, you may qualify with an annual revenue of $100,000 (or about $8,333 per month), credit scores of 625 and just one year in business (OnDeck ranked as one of our best startup business lenders). While some businesses won’t be eligible, the requirements are more flexible compared to some other lenders. You can also build business credit when you make on-time payments since OnDeck reports your payments to the business credit bureaus.

However, OnDeck lacks transparency around its loan costs. The fine print only notes the average APRs for term loans (60.9%) and lines of credit (52.6%), which are high. (The averages are based on half-year data through March 2023.)

Also, the lender’s loan amounts are relatively low: The term loan ranges from $5,000 to $250,000, while the line of credit offers between $6,000 and $100,000. And repayment terms are relatively short with frequent payments required. The term loan is repaid over 24 months on a daily or weekly schedule, while the line of credit is repaid over 12 to 18 months on a weekly or monthly basis.

Pros

Same-day funding if you meet requirements
Low annual revenue requirement
Builds business credit
Low minimum borrowing amounts

Cons

Lacking interest rate transparency
High average APRs
Short repayment terms for term loans
Frequent payments required
Relatively low maximum loan amounts
Possible origination fees

Who should consider it

Businesses that generate a relatively low annual revenue but can handle shorter repayment terms

QuickBridge

Best for multiple product options

Why we picked it

QuickBridge offers various financing options, including short-term loans, daily payment financing, bridge loans, unsecured loans, receivables financing and working capital loans. The online application takes just a few minutes to complete; if approved, you may receive funds in as little as 24 hours. The funds can be used for any business purpose.

You can borrow up to $500,000 with repayment terms ranging from about six to 18 months, depending on the type of loan you take out. You may qualify with at least six months’ time in business and $250,000 or more in annual sales.

QuickBridge’s main drawback is that its website lacks transparency. It’s difficult to find basic information about the lender’s eligibility criteria, loan fees and interest rate ranges without going through the preapproval process.

Pros

Many loan options
Funding within 24 hours
Short time in business requirement

Cons

Lacking transparency about eligibility rules, rates and fees
Requires high annual revenue
Repayment terms are relatively shor

Who should consider it

Newer businesses that generate significant revenue and need funding quickly

Our picks at a glance

Why get a business loan?

Cover emergency expenses. When cash flow is slow but you still need to cover necessities like payroll and bills, a fast business loan can help you get the money you need.
Get through slow periods. A fast business loan can also help keep operations running smoothly during seasonal slumps.
Expand business operations. You may also want to borrow money to grow your business. The funds can pay for hiring new employees, purchasing real estate or scaling operations.
Buy or upgrade equipment. Some business loans are specifically designed to help you finance or upgrade your equipment, such as computers, furniture or machines that help you create your products.
Refinance business debt. You may be able to use some business loans to refinance existing debt, which can be helpful if you qualify for a lower interest rate.

What are fast business loans?

A fast business loan typically refers to any type of financing that a business can get quickly, usually within one to three business days following loan approval. These are usually available through online lenders that streamline the application process. The lender may use automated underwriting programs that can analyze your application within a few hours, and it may pair the business owner with a representative to review financing options and discuss questions.

Business loans with fast approval may come with slightly higher interest rates and less favorable lending terms than other financial products. But you may be more willing to accept these terms when you’re struggling with cash flow problems or need immediate help covering critical expenses.

Qualification requirements may include strong personal or business credit, a relatively high annual revenue (around $100,000 to $250,000) and recent bank statements to help the lender assess the business’s financial health.

Types of fast business loans

Pros and cons of fast business loans

The main benefit of a fast business loan is that it can help you get funding quickly, which may be necessary if you have sudden or emergency costs. There are several loan options, too, based on your business needs. For instance, you may choose from term loans, lines of credit, revenue-based financing, invoice factoring and more.

But there are trade-offs for the convenience of getting a fast business loan. You may pay higher APRs and have shorter terms to pay down your debt, and some fast business loans come with upfront fees (such as for origination) and prepayment penalties.

Alternatives to fast business loans

Qualifying for a fast business loan

Common business loan requirements include:

Business plan: Lenders may want to see a formal plan outlining your strategy and projected revenue.
Strong cash flow: You may need to prove you generate a minimum monthly or annual income.
Solid credit history: Your personal and business credit may be considered when you apply for a fast business loan.
Time in business: Lenders may require you to be in business for a minimum amount of time, anywhere from six months to two years or longer.
Collateral: If you’re taking out a secured loan, you’ll need to post sufficient collateral, such as equipment or real estate.

Application process for fast business loans

The process of getting a fast business loan is similar to a traditional or “slow” business loan. Here’s a rundown:

Determine your needs. Think about how much you need to borrow and how you plan to spend the funds. All business loans have borrowing limits, and some are geared toward specific purposes.
Prepare your financial statements. Like with no-doc business loans and no-credit-check business loans, fast financing may require less documentation. Still, lenders generally insist on basics like income statements, balance sheets and several months of bank statements. You’ll save time if you gather these before starting the application and have them ready.
Check your credit. The lender will likely pull your personal credit and may check your business credit to see if you qualify. You can check your own credit before applying to predict what APR you receive. A good place to start is AnnualCreditReport.com, where you can get free weekly copies of your personal credit reports. However, you may not have time to improve your credit if you’re looking for fast funding.
Research lenders. Compare the loan terms, funding timelines, borrowing limits and eligibility requirements among the best small business loan lenders. Check a mix of lender types, such as banks, credit unions and online institutions. Prioritize lenders that offer pre-qualification so you can confirm eligibility and check rates via a soft (harmless) credit check.
Confirm affordability. Once you have a better idea of the rates and terms your business might qualify for, input them into a loan payment calculator (like Calculator.net’s) to confirm repayment fits your company budget.
Submit a loan application. Fill out the business loan application and provide any requested documents to the lender.
Talk with a lender representative. The lender may connect you with a loan representative to discuss your options and answer any questions.
Close the loan. If you’re approved, read through the loan documents and make sure you understand everything. Then, sign the agreement; once you receive the loan funds, you’ll start making payments as agreed.

Methodology

To determine the best fast business loans, our editors asked a basic question: What features do borrowers care about, and in what order of priority? Speed was an easy consideration and garnered a sizable weighting. But a fast loan may not be a good loan, so we compared lenders across 20 additional criteria in the following four categories:

Rates (30%)

Here, we rewarded lenders for displaying rates prominently, having competitive fixed APRs and making rate discounts available.

Loan details (35%)

“Time to fund” was the key ingredient of this category. Besides awarding points to lenders that fund loans quickly, we gave them kudos for having low minimum and high maximum borrowing amounts, a seamless online application and no origination fees.

Eligibility (20%)

A fast business loan does you no good if you can’t qualify, so we prioritized lenders with accessible eligibility requirements for credit scores, time in business and revenue. We also limited our scope to lenders that work with borrowers nationwide, or close to it.

Repayment experience (15%)

Loans that are paid out quickly are usually repaid quickly, too. But the best fast business loans have flexible repayment schedules and options, plus available and trusted customer support (as determined, in part, by Better Business Bureau ratings).

What didn’t make the cut

Transparency — or a lack thereof — is typically the biggest reason lenders don’t rate highly enough to be included in our lists. The less they share about their products, the less confidence we have in them.

Here are additional reasons why some lenders didn’t earn better out-of-5 ratings.

AltLINE and Wells Fargo charge origination fees.
American Express and Taycor Financial have relatively higher customer dissatisfaction than competitors.
Balboa Capital and Midwest Corporate Credit have relatively high minimum borrowing amounts.
Fundbox and Headway Capital have relatively low maximum borrowing amounts.

Frequently asked questions (FAQs)

Business owners typically need at least six to 24 months in business, a strong personal or business credit history and a relatively high annual revenue to get approved for a fast business loan. Lenders use these characteristics to assess your ability to repay the money.

Some online lenders provide fast loans to businesses that have operated for as little as six months. If you haven’t been in business for long, you might be able to get an alternative source of funding, such as a business credit card.

Fast business loans often come with higher APRs, shorter repayment terms and relatively low borrowing amounts. However, you might find cheaper, high-limit loans that you can repay over a longer period.

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