Need to get a business loan fast? Our no-fluff guide shows you how to prep your docs and secure the quick funding your business needs to grow.
Let’s be honest. Visualizing moments when a business loan might come handy almost never feels like an oasis. Instead, it is a real panic-laden, heart racing, “my cash flow is a complete train-wreck” scenario. On business-prioritizing, it can be a golden opportunity, a piece of critical equipment suddenly giving out, or an influx of orders that demands a hefty upfront investment. The second a business opportunity ticks, the pressure is on. Getting a cash flow boost in the form of a business loan at that moment requires knowledge on effective business loan tactics. From my experience of dealing with business owners and guiding them through the tumultuous ride of entrepreneurship, the ‘get fast in business loan’ mentality is very misleading. Efficient planning and preparation is the real strategy to speed. Treat this as a financial fire drill.
Step 1: The “Why” and “How Much” interrogation that requires deep self-reflection.
Hold on, don’t google “business loan” just yet. Let’s calm down for a second, breathe, and get some self-honesty. Desperation and lack of focus is a detectable scent by loan lenders, and scarily enough, they hone in on it like it’s a swarm of plants. Walk into the appointment with complete self-composure and clarity giving your purpose without hinting at your personal desperation for funds.
Why, specifically?
“For growth’ does not cut it and whyResponses “to purchase the XG-5000 industrial printer” or “to fulfill the 50,000 dollars a year contract with XYZ Corp” cut it. Every wishing fund does the same, they wish and get funds, instead of following operational and planning protocols.
How much, in particular? Do not guess. Take quotes and do some number crunching. Adding in a margin of 10-15% for any unexpected costs is perfectly reasonable. Justifying a rounded number shows a level of thought put in and planning is the first step towards a fast business loan.
Step 2: Prepare Your “Financial Go-Bag”
Missing documents is the primary cause of delayed loan applications. Looking for tax documents in shoeboxes is the last thing you want to do when looking to get a business loan fast. You want your “go-bag” set to be digital, allowing instantaneous access.
At the bare minimum, your Go-Bag should contain:
Business Bank Statements (3-6 months): Your cash flow for the last 3-6 months.
Recent Tax Returns (Personal & Business): Usually the last two years.
Basic Financial Statements: Your Profit & Loss (P&L) statement and Balance Sheet. Don’t panic; your accounting software (like QuickBooks or Xero) can generate these in minutes.
Business Formation Documents: Your Articles of Incorporation or LLC Operating Agreement.
A List of Outstanding Debts: The name says it all.
Storing these documents in a specific cloud folder will speed things up significantly.
Step 3: Your Financial Dating Profile: What is a Credit Score?
Your credit score is not only the first impression a lender gets but also a swipe-worthy peek at your financial reputation. Moreover, it is like a financial dating profile. Preemptively, it is best to know what it out there that is visible to them.
Ensure that you check your personal FICO score along with your business credit score, if available, from agencies like Dun & Bradstreet. In case your score is low, it is not the end of the world. This is especially true for online lenders who focus more on recent cash flow instead of credit score. This is a bonus if you’re looking to secure a business loan quickly. Regardless, it is advisable to know your score to help you find the best fit with the right lender from the start and save yourself a lot of hassle and pointless applications.
Step 4: Bandaid the Wound: The Speed vs Cost Trade Off
This is the best time to access the helping hand of a specialist. One thing to note is that not every lender will be able to meet you at the speed you’re looking for.
Traditional Banks (The Marathon Runner): They provide the best rates and are the slowest option. If a traditional bank works best for you and your cash needs this quarter, then you’re in luck. However, if you need funds this week, you will have to consider other options.
Online and Fintech Lenders (The Sprinter): For speed, this is your best bet. Companies like OnDeck and Kabbage (now part of Amex), and Fundbox have built their entire businesses around quick, tech-driven approvals. You can often receive a decision in hours and receive funds in 1 to 3 business days. Be prepared for a higher fee. Business loans through this option are fast and effective.
Merchant Cash Advances (MCAs) (The Rocket Fuel): This isn’t technically a loan. You receive a lump sum of cash in exchange for a percentage of your future credit card sales. This is the fastest way to receive funding, at times receiving funds in under 24 hours. This option is the most expensive by a long shot. Use this for short-term, high-return, fast pay-back emergencies.
When seeking a business loan, it is best to seek online lenders first. Their applications are more straightforward, and their decision-making processes are automated and faster compared to other lenders.
The answer to how to get a business loan fast is more about changing panic to preparation. It is more about having the right documents and story straight and having a balanced aim towards the right lenders devoid of any pressures. If you understand the layout and create your financial go-bag, you change from an applicant scrambling to calm a financial fire to a calm business owner who is fully prepared. You are now in charge of the timeline. You can now capture the deep breath, organize your files and set out to get the loan. The funding you need is available, and it is you who decides the timeline. The business opportunity you wish to explore is waiting.
