If you’re a small business owner, you know the unexpected happens, and sometimes—when you need to finance an emergency repair or purchase inventory for an influx of orders, for example—you can’t afford to wait for funding.
Regardless of the specific situation, there might come a time where you need access to financing as soon as possible. In this case, you’ll be looking for same-day business loans—in other words, a loan that you can apply to, receive approval for, and access, all within the same day.
This being said, however, if you’ve ever had any experience with business loans, you know that it’s not always easy to get access to financing so fast—plus, the faster you need the funding, the more expensive it’s likely to be.
Luckily, we’re here to help. Finding and accessing same-day business loans can be tricky, but if you’re in a tight situation, you’ll want to know what your options are.
In this guide, therefore, we’ll explore your best options for same-day business loans and what you can expect from each of these lenders. We’ll also discuss what type of financing products are most likely to fund this quickly, as well as the pros and cons of accessing same-day business loans to meet your funding needs.
Best Lenders for Same-Day Business Loans in 2019
Before we start discussing your top options for same-day business loans, let’s start with the basics: Where will you be able to find access to funding so quickly?
On the whole, if you need quick business loans, your best bet will be to turn to alternative lenders. These lenders will have simpler processes, online-based applications, more lenient requirements, and will be the most likely to loan you money quickly.
Although traditional banks will offer the most competitive rates and terms, their processes will be lengthy and more complex; plus, you’ll need to meet the highest requirements to qualify.
In fact, according to a study by Harvard Business School, most major alternative lenders offer full loan applications online over a desktop or mobile platform and these applications take just 30 minutes to complete. Applying for traditional bank financing, on the other hand, can take an average of 25 hours for a single loan—and that only accounts for the application part of the process.
So, if you’re looking to apply for a loan and receive funding within the same day, you’ll want to search for online lenders that can accommodate this kind of fast turnaround.
However, not all alternative lenders will be able to offer a same-day business loan, but the majority will be able to get you funding within a week—and certainly much faster than a bank loan or SBA loan.
Of course, as we’ll discuss throughout this guide, it’s important to keep in mind that within the world of business lending, speed comes with a cost—same-day business loans will likely mean higher interest rates, smaller loan amounts, and shorter terms—as well as the added risk of predatory companies trying to take advantage of business owners who need funding quickly.
So, now that we’ve established that online lenders will be your best source for same-day business loans, let’s talk about the types of loans you’re more likely to find when you’re looking for fast funding.
As you may expect, certain types of financial products lend themselves to speed better than others. SBA loans, for example, are notorious for their slow funding—due to the extensive application requirements and the lengthy process involved. This being said, however, SBA loans also have some of the most competitive terms and rates on the market.
Nevertheless, if you’re looking for same-day business loans, you’ll likely be choosing from the following:
With all of this in mind, let’s break down five of the best lenders that can offer same-day business loans. In short, these are your top options:
With Fundbox, you can receive a same-day business loan in the form of a line of credit. Fundbox offers lines of credit in amounts starting at $1,000 and reaching up to $100,000. The terms for this product are short, only 12 or 24 weeks. Interest rates start at 4.66% of the draw amount, but can range depending on your qualifications.
Generally, to qualify for a same-day business line of credit from Fundbox, you’ll need at least $25,000 in annual revenue, a personal credit score of at least 500, and at least three months in business—fairly lenient requirements.
You can apply for a line of credit from Fundbox quickly and easily online; in fact, Fundbox pulls most of your financial information by connecting to your business checking account or online accounting software. This way, you can save time on pulling documents and filling out forms and complete the funding process much faster.
Typically, once you’ve created a Fundbox account and connected your accounting software or bank account, Fundbox can give you a credit decision within minutes. If you qualify, you’ll be able to see the line you’ve been approved for and draw funds easily once you’ve accepted the offer. Funds will arrive in your business bank account as soon as the next business day.
One of the biggest benefits of Fundbox as a provider of same-day business loans is their quick and automated process. If you need access to a business line of credit as soon as possible, you’ll likely be able to turn to Fundbox. Plus, with a low credit score minimum and only three months in business time requirement, many newer and startup businesses will also be able to qualify for this financing product.
Next on our list of best lenders for same-day business loans is BlueVine. BlueVine actually offers three different loan products, as well as a fully digitized application and underwriting process.
First, BlueVine offers invoice factoring, in amounts ranging from $20,000 to $5 million. The terms for their invoice factoring start at one week and extend to 13 weeks. The interest rates can range from 0.3% to 1.7% per week.
Of all the financing BlueVine offers, their invoice factoring will be the easiest to qualify for, as they’ll look more closely at the payment history of your customers. To qualify, you’ll need at least $100,000 in annual revenue, a minimum personal credit score of 530, and at least three months in business.
In addition to invoice factoring, BlueVine (like Fundbox) provides lines of credit. Unlike FundBox, however, the BlueVine lines of credit have longer terms: six or 12 months. These lines of credit start at amounts of $5,000 and reach up to $250,000 with interest rates ranging from 4.8% to 51%.
To qualify for a line of credit from BlueVine, you’ll need a higher credit score and longer time in business than with their invoice factoring. You’ll need the same $100,000 in annual revenue, at least a 600 personal credit score, and at least six months in business.
Finally, BlueVine also provides term loans, which have the same qualification requirements as their lines of credit. These term loans can range in amount from $5,000 to $250,000, and terms can be 26 or 52 weeks. Interest rates fall into the same range as the lines of credit: 4.8% to 51%.
Like Fundbox, BlueVine has automated their application process to be able to provide fast funding. You can apply for any of BlueVine’s products online—and, if you’re applying for invoice factoring, you can attach your accounting software to give BlueVine access to your financial information.
Although BlueVine does have the ability to approve loans within the same day, it’s important to note that on average, their funding time ranges from two to seven business days, which is still incredibly fast. Plus, because BlueVine offers three unique products and fairly reasonable qualifications, they can service a wide variety of business owners with specific needs, especially those who can’t qualify for bank financing.
Looking for a same-day business loan that is specifically a term loan, and not another type of financing product? Perhaps LoanBuilder is the right option for you.
With LoanBuilder from PayPal, you can receive a short-term business loan that will work for you, with amounts ranging from $5,000 to $500,000. Terms on these loans can range from 13 to 52 weeks, depending on the loan amount, with an APR as low as 24.9%.
To qualify for a loan from LoanBuilder, you’ll need at least nine months in business, $42,000 minimum annual revenue, and a personal credit score of at least 600.
Like the other same-day business loan lenders we’ve discussed, you can apply for a loan from LoanBuilder by completing a simple five- to 1o-minute online application. Once you’ve done so, you’ll be able to select your desired loan amount and terms and compare the costs of financing. After you choose your terms and amount, you can complete the application.
If you provide the necessary documents promptly, you’ll can be approved for a LoanBuilder loan and receive funding as soon as the next business day.
All of this being said, although the rates on a term loan from LoanBuilder will be higher than a traditional bank loan for your business, this is a great option if you’re looking for a loan with speed and a simple application.
Another option for same-day business loans is Rapid Finance. Rapid Finance offers both short-term loans and merchant cash advances, with funding available as soon as the same day.
First, with their merchant cash advances, Rapid Finance offers amounts ranging from $5,000 to $500,00, terms from three to 12 months, and interest rates starting at a 1.22 factor rate. To qualify for this product, you’ll need at least $5,000 in monthly credit card sales, a minimum 550 personal credit score, and at least three months in business.
Although this may seem like a great option for newer businesses, it’s important to remember that merchant cash advances are often the most expensive financing product, and therefore, you’ll want to consider all of your other options before turning to this type of product.
Rapid Finance also offers three different types of short-term loans—their Standard loan, Select loan, and Preferred loan. For these loans, amounts can range from $5,000 to $1 million with terms as short as four months or as long as 18 months. The specific loan you’re looking at will determine your qualifications, but generally, you’ll need an annual revenue of $120,000, a minimum personal credit score of 550, and at least two years in business. These loans are also priced by factor rate, which can go as low as 1.11 or as high as 1.31.
With Rapid Finance, you’ll be able to submit an application with your bank statements online and then you’ll receive an offer based on your cash flow that will tell you which of the Rapid Finance products you qualify for. If you accept the initial offer, you’ll go through the underwriting process, in which you’ll provide more information and work with a Rapid Finance representative directly. All in all, you’ll be able to receive an initial offer within six hours and funding available as soon as the same day. Generally, however, Rapid Finance takes an average of two days to fund businesses.
Ultimately, like the other lenders we’ve discussed, Rapid Finance is a worthwhile option for fast funding, especially if you can’t qualify for a bank loan. Although Rapid Finance requires a longer time in business than some other lenders, their other requirements are relatively flexible, especially if you’re looking for speed first and foremost.
Finally, the last lender on our list of the top options for same-day business loans is CAN Capital. CAN Capital is actually one of the oldest alternative lenders in the industry and provides both short-term and medium-term loans.
First, CAN Capital offers short-term loans that can range in amounts from $2,500 to $250,000, with terms between three and 24 months. Like Rapid Finance, CAN Capital charges interest in the form of a factor rate, which in this case, can range from 1.15 to 1.48.
To qualify for their short-term loans, CAN Capital requires a minimum monthly revenue of $4,500, personal credit score of 600 (although they lower this to 550 if you have more than six years in business), and they prefer 12 months in business—however, they’ll consider a minimum of three months of consistent revenue.
For their medium-term loans, CAN Capital offers amounts from $50,000 to $150,000 and terms from two to four years. These loans are priced in terms of APR, which can range from 12.9% to 29.9%. In order to qualify for this product, you’ll need a personal credit score of 680, seven years in business, and over $350,000 in annual revenue (although this is preferred, not a set minimum).
Out of all of the lenders for same-day business loans that we’ve discussed thus far, CAN Capital will probably require the most involved application process. Nevertheless, if you can complete their online application, work with a representative, and go through the underwriting process, you can receive funding extremely quickly. Although it’s possible to receive same-day funding, generally CAN Capital funds their customers within a few days.
Overall, CAN Capital provides two strong loan products, especially for business owners who need funding fast. However, compared to many other lenders, they’re going to require higher requirements to qualify for one of their loans.
Now that we’ve reviewed some of the best lenders that can offer same-day business loans, let’s break down the possible benefits and drawbacks of accessing this type of business financing.
After all, anytime you’re planning on taking on debt for your business, you’ll want to be sure you understand the full picture and explore all of your options.
If you’re looking for a same-day business loan, time may be of the essence, but you don’t want to make the mistake of rushing through the process and ending up with the wrong financing product—something that your business can’t afford or won’t actually fulfill your needs.
Let’s discuss further.
So, what are the top benefits of same-day business loans? Let’s take a look:
First, of course, there’s speed. With any of the financial products we’ve explored from top same-day lenders, you’ll have access to the business funding you need, and quickly. Whether you need the funding to cover an emergency or take advantage of a new opportunity, sometimes it’s necessary to access financing as quickly as possible—and in this case, you’ll have access to the funds you need, fast.
Along these lines, another benefit of these same-day business loans is that they’re available in many types of financing products. These options are not just short-term loans, but also medium-term loans, lines of credit, invoice factoring, and more. Therefore, these loans will not only give you access to financing fast, but they will also allow you to explore different products to find the one that will best meet your specific needs.
Moreover, as we’ve seen through our discussion above, many of these lenders and products have lenient requirements and simple application processes. Compared to a traditional bank loan or SBA loan, you’ll be able to apply for a loan quickly and easily (and mostly online) and often won’t have to worry about excessive documentation or information. Not only does this add to the speed of the loan, but it also makes the whole process easier for you.
Plus, for many newer businesses or business owners with less-than-ideal credit, it can be extremely difficult to receive financing. With many of these options, however, you’ll find that lenders are flexible with their requirements—whether time in business, credit score, or revenue—meaning a greater amount of business owners can access the funding they need.
All of this being said, however, there are also notable downsides to consider when it comes to same-day business loans.
First and foremost, speed often comes at a price. On the whole, the faster you need access to financing, the more expensive it’s going to be. This is especially true if you can only meet lower-level business loan requirements. Therefore, although these loans may be able to get you financing quickly, you’ll also be paying a significant amount in interest and fees to receive this capital.
Along these lines, same-day business loans will also have shorter repayment terms, especially in comparison to other products on the market. In this way, you’ll not only be paying more for access to financing, but you’ll also have to pay back what you’ve borrowed in a shorter amount of time.
Finally, since you’ll only be able to access same-day funding from online, alternative lenders, you’ll have to take more care as you explore lenders and what they can offer. Overall, the online lending industry is much less regulated than traditional banks, and therefore, you’ll need to be on the lookout for predatory companies looking to take advantage of small business owners.
Although there certainly are reputable lenders out there—like the ones we’ve discussed—there are also companies that will promise immediate funding but will also charge hefty fees, expensive rates, and ultimately, trap your business in a cycle of debt that’s difficult to break. With this in mind, if you’re looking for same-day business loans, you’ll want to take extra care to ensure that you’re working with a trustworthy lender and aren’t falling prey to scams or unsavory companies.
As you can see, there are both pros and cons to consider when it comes to same-day business loans, and you’ll want to think how these points apply to you when trying to decide what financing is best for your business.
Ideally, you would turn your search toward the financing products (like SBA loans or bank financing) that can offer you the best rates as opposed to the fastest funding times. However, sometimes time is your top priority, and in that case, you’ll want to keep the following in mind when trying to determine what’s right for your business:
By considering all of these factors, you should be able to narrow down your options to determine what type of same-day business loan and what lender will be able to best serve your business. However, if through this process, you find that you can wait to find a product with more desirable terms and rates, we’d recommend you do so, as it will likely be better off for your business in the long run.
All in all, if you need a same-day business loan, there are options out there—including different types of products from different online lenders.
However, and we can’t stress this enough, speed comes at a price. In other words, same-day business loans are going to be some of the most expensive business loans. Nevertheless, sometimes you need an emergency business loan or funds to jump on a once-in-a-lifetime opportunity. In these cases, it’s important that you still take the time to find the right product and the best lender for your business.
And, if you can efficiently qualify and pay back a same-day business loan, you’ll put yourself in a better situation in the future to find and receive funding that may be slower to fund, but can offer the most ideal terms and rates.