As a small business owner, your cash flow may not always be as consistent as you’d like—and those business expenses may be less predictable than you’d hope. Whether you need temporary help covering expenses or want to move fast on an opportunity but don’t have liquid funds, a small business loan can help.
The hang-up? Loans can sometimes move at a snail’s pace. Small business administration (SBA) loans, for instance, can take months. Underwriting for traditional small business loans from banks and credit unions is faster, but it still may be several weeks before you get the funds.
Online lenders can be a terrific alternative for fast small business loans and business lines of credit. You can get a decision in hours (or even minutes!) and funding in just a few days—but just be sure you’ve considered the risks of small business loans. Keep reading for that information and more.
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5 best small business loans for quick funding
Running a small business can mean a need for fast funding solutions. Different loan companies excel in various areas.
We’ve assembled a list of the best small business loans that specialize in quick service. Click the lender’s name in the table below for the details on its small business loan, or keep reading for more about all five lenders.
| Lender | Funding time |
| Headway Capital | 1 business day |
| Credibly | Less than 24 hours |
| OnDeck | Same day |
| Kapitus | 24 hours |
| Bluevine | 24 hours |
Headway Capital – Best choice of repayment terms
- Flexible repayment duration
- No early repayment penalty
- Customizable loan amounts
Headway Capital outshines its competitors with adaptable repayment terms. Understanding that every business has its unique financial flow lets you tailor your loan terms to suit your business needs.
Moreover, it encourages businesses to repay loans ahead of a set schedule with zero early repayment fees.
Credibly – Best for bad credit
- High approval rates for bad credit
- Quick online application system
- No collateral needed for some loan types
Credibly targets businesses with a less-than-perfect credit score, providing a lifeline when other institutions may decline.
Dedicated to helping businesses succeed despite their credit history, it offers an efficient online application system and no collateral loans, making the loan process smoother.
OnDeck – Best customer service
- Expert loan specialists
- Real-time support and consulting
- Detailed online resources
OnDeck offers borrowers top-tier customer service. The company hosts a team of experienced loan specialists ready to answer your questions and provide advice.
Its online resources are comprehensive, offering all the information you need in clear and accessible language.
Kapitus – Best for fast approval
- Same-day loan approval
- Flexible loan options
- Customizable loan terms
Speed is paramount at Kapitus. Its quick loan approval process often leads to same-day approvals, helping businesses access the cash flow they need in record time. It also offers a variety of loan options, allowing businesses to choose what fits them best.
Bluevine – Best for online management
- Comprehensive digital dashboard
- Fast online application
- Simple loan management system
Bluevine takes online loan management to another level. It provides a comprehensive digital dashboard that allows easy tracking and management of your loan. With a quick-to-fill online application and a user-friendly loan management system, Bluevine offers a seamless lending experience.
How to qualify for small business loans for fast cash
Qualifying for a small business loan for fast cash may be easier than you think. You can fill out online loan applications in just a few minutes—and often get an approval decision just as fast.
Requirements for approval vary by lender, but here’s what many small business lenders look for:
- Credit score: There’s no hard and fast rule for credit scores, but many of the best small business loans have a 625 minimum credit score requirement. Some lenders, such as Credibly, use alternative data to make a lending decision.
- Time in business: Lenders may also want to see that you’ve been in business long enough to feel safe lending you funds. Here’s where your industry experience helps! Bluevine, for instance, wants to see at least 24 months in business.
- Annual revenue: Many lenders offering quick funding for small businesses have annual revenue requirements. For example, OnDeck requires borrowers to generate $100,000 in annual revenue to be considered for a loan. (This lender also requires that you have a business checking account.)
Narrow your search to those lenders whose requirements you meet, and then start comparing to find the best option for you.
Ready to apply? You’ll need to provide basic information, which varies by lender. In general, you’ll need the following information:
- Your personal information, including name, email, phone number, and address
- Your business information, e.g., industry, years in business, number of employees, and tax ID number
- Your business’s revenue and recent bank statements
- Personal and business tax returns
Are there risks or downfalls to fast small business loans?
Fast small business loans are convenient, especially when you need money right away. But you’ll pay a price for that convenience. Here are the drawbacks of small business loans for fast cash:
- Higher interest rates: Interest rates vary by lender, but most online lenders charge more in interest in exchange for easier qualification requirements and faster access to funds. Generally speaking, SBA loans (loans backed by the Small Business Administration) have the lowest interest rates on the market, but funding can take months, and the application process is much more involved.
- Short repayment terms: Small business loans from online lenders tend to have less flexibility in repayment terms. Many require repayment in as little as a year or two. Even those with longer repayment terms typically can’t match traditional bank loans or SBA loans, which can go as long as 25 years (with extensions).
- Small borrowing amounts: Small business loans for fast funding often have lower caps on how much you can borrow. Bluevine, for instance, offers credit lines up to $250,000, and Credibly lets you borrow up to $400,000. But most SBA loans top out at $5 million. For many small business owners, a smaller loan amount could be fine—but in certain cases, you run the risk of the loan not being enough to get you through tough times.
Should you get a fast small business loan?
Fast small business loans have two terrific factors:
- The application, approval, and funding processes are all—you guessed it—fast.
- Many lenders have laxer credit score requirements or may even use alternative methods to determine whether they’ll lend to your business.
Our expert recommends: How to assess the trade-offs of a fast loan
It depends on the need for the loan. If the need is critical to the business, like covering payroll, speed is more important than cost. If the need is not time-critical, give the cost of the loan top consideration. In either case, it is most important to use a loan that doesn’t carry prepayment penalties.
Do these benefits outweigh the risks? In some cases, yes. Here are a few scenarios where you might want to get a fast small business loan:
- A limited-time business opportunity: If there’s a dream investment opportunity but only a small window of time to opt in, you will need fast access to funds. A traditional small business loan may not be quick enough for you to take advantage of the investment.
- Emergency expenses: If your business incurs unexpected expenses—and you need to make a payment soon—a quick small business loan could be your best bet.
- Bad credit: Getting a traditional small business loan can be challenging if you have a subpar credit history. But many online lenders are willing to lend to borrowers with bad credit—just expect higher interest rates in return.
Quick funding alternatives
Fast small business loans aren’t the only option available to business owners who need quick cash. Here are a few alternatives to consider:
- A business credit card: You may be able to get approved for a business credit card with a high enough credit limit to cover your new expenses. Be sure to compare credit card interest rates against the small business loan interest rates—and factor in credit card perks, such as rewards programs and travel benefits, when making your decision.
- A friend, family member, or investor: Your friends, family members, neighbors, and community members—especially those who love and patronize your business—are your biggest advocates. Asking loved ones to borrow money can be awkward, but they may be willing to treat it as an investment in your business. You can also explore peer–to–peer lending options.
- Your personal savings: As a small business owner, you likely know how important it is to keep finances separate. But when times are tough, and your business needs money, you might consider reaching into your personal savings to cover expenses. This will help you avoid expensive loans, but just remember to pay yourself back when times aren’t so tough.
- Business loans or SBA loans: If you have more wiggle room in your timeline, it may be wise to skip the fast funding from online lenders and stick to traditional business loans from a bank, a credit union, or the SBA.
- Grants: Small businesses may qualify for federal or state-level grants. The process may not be fast, but it’s smart to keep up with what grants you may qualify for. Applying may help you avoid the need for emergency borrowing down the road—or at least help keep the amount you need to borrow lower.