Guide: How to Get Fast & Easy Online Business Loans
For many new business owners, finding proper funding in time can be nearly impossible.
If an emergency arises, such as the immediate need for thousands of boxes, an essential piece of equipment, or some other crucial business opportunity, you likely don’t have time to waste to drum up funds.
For those willing to pay a little more on interest, various online resources can deliver quick and easy business loans.
When getting a business loan from a bank, the interest may be slightly lower, but there is always red tape and lengthy paperwork involved. This long underwriting process could mean months to separate you and your next business upgrade.
With online business loans, on the other hand, speed and efficiency are always the key factor. In this guide, we will discuss several options to help you make the right decision today for your quick business loans.
Image Source: BigStock
The Application Process for Online Small Business Loans
Small business loans online can help various companies by providing the funds to pay for an array of daily business needs or expenses. Online options are quick for business loans when compared to regular banking loans.
Once the application is received, online technology can quickly accelerate the process of getting online business loans, so the decision is made more quickly than with regular banking. It’s as easy as 1-2-3 to find the right online small business loans for your company.
- Get a free instant quote from sites like Balboa Capital
- Submit the online application and wait for a decision
- Get funding in a matter of days for your business loans online
For those who wish to find fast online business loans, there are several online options for easy business loans.
Two Types of Online Small Business Loans
First of all, let’s break down the current problem within your business to find the best answer. Either your issue involves fast cash for an immediate need, or you need fast cash for a business opportunity.
In order to get the money you need, knowing the difference is vital for quick business loans.
Fast cash for immediate needs usually means that you need to repair a problem rather than bringing in something new all-together. For example, you may need immediate cash to buy inventory for a big event, to meet payroll, or for a financial emergency.
If you need fast cash for a business opportunity, on the other hand, there is generally a fork in the road: do you grow now or wait? A small business may have various opportunities for growth, so quick small business loans are ideal.
Within these opportunities, the owner or co-owners will need to decide if they are going to expand or remain the same. Then, the decision to get online business loans becomes an option.
Fast Cash for Immediate Needs
As stated above, fast cash for immediate needs includes fixes to current solutions, such as needed repairs on an assembly line or a quick borrow for payroll while waiting for a vendor to square up payments. For these quick business loans, several options are available for business loans online.
Kabbage can provide quick business loans for nearly any need, including financial emergencies or stocking up on extra inventory. With Kabbage, even rough credit can usually pass muster.
As a lender, Kabbage does not require a minimal credit score for qualification, like most companies do. Instead, they ask for your business to have a history of $50,000 or more in annual revenue.
Once these parameters are met, Kabbage will provide a credit line of $100,000 or less to those who qualify. In addition, the quick business loans can be completed from the comfort of your laptop in only a few minutes.
Then, approval and funding will be available in a matter of days, rather than months, as long as your business is confirmed.
The only downside, like many other online options, is the interest rate. With Kabbage, once your account has been verified, they will provide you with an interest rate that could be anywhere from 32 percent to 108 percent on an annual scale.
These numbers are high, but quick payment for a business advancement could still be beneficial depending on your situation or the quick business loans that you need.
If your personal credit score is over 500 and your company’s annual revenue is over $100,000, OnDeck may be an option. OnDeck requires 1+ years in business. Unlike Kabbage, however, OnDeck’s annual interest rates are slightly lower, at 9 percent to 98 percent on term loans with 14 to 40 percent interest on credit lines, so it’s a great, easy business loans.
Since the credit line offers more flexibility than a regular term loan, it may be the best option for those who have a credit score of 600 or greater. With this option, businesses are able to draw and repay on funds on an open, as-needed basis, which is great for certain businesses, and this also features lower APRs, so it could be less expensive in the end. OnDeck’s application takes less than 10 minutes, so it’s an option for quick and easy small business loans.
3. Lending Club
Lending Club provides the lowest total borrowing costs with funding terms and credit lines available within a week of approval. With APRs between 8 and 32 percent, this option is the best if your credit is within their standards. With Lending Club, a credit score of 600 is needed and an annual revenue of at least $75,000 with two years of business history in the books, making it ideal for easy business loans.
Self-proclaimed as the “world’s largest online marketplace,” the lender is ideal for connecting borrowers with investors. Unlike the average banking system, Lending Club makes credit more affordable with quick and easy applications. Since their cost is lower than other programs, they may be the best option for those looking for fast cash.
Fast Cash for Business Opportunities
Now, we can analyze similar opportunies with another view in mind: fast cash for business opportunities such as expansion. Since small businesses have an array of options to expand their business, it’s important they also have several options for quick business loans when it comes to finding the best small business loans online.
1. Lending Club
Since Lending Club’s options come with lower rates, they are generally the best option for those who can meet their criteria (600 credit; $75,000 annual review with 2-year history). Since their standards are relatively high, it may be more difficult to get approved when compared to websites like OnDeck or even the lender Dealstruck, which is another option for small business loans online.
For those who do not meet Lending Club’s high standards right away, OnDeck is another option. With this lender, turnaround times can be as little as 24 hours so cash could arrive even sooner. In addition, your business only needs a 500 credit score with a one-year history and $100,000 in annual revenue. However, with a more open platform, APR rates could be higher and repayment scales may require weekly or even daily scheduling to pay back the online small business loans.
Another option, Dealstruck, offers more than one option for those seeking financing. With a variety of options, this lender provides term loans and credit lines for inventory. As always, there is give and take involved. To get these options, it can take an average of 10 days to receive the funds and to qualify, a credit score of 600 is required, and a one-year history of over $150,000 in revenue, which may be the best online small business loans for your organization.
SBA Loans Can Be Quick Small Business Loans
In addition to the examples above, SBA Loans (Small Business Administration) are still one of the best ways to finance a small business. Since they are guaranteed by a federal agency, these quick business loans allow for lenders to provide more flexible terms, with slightly lower rates.
SBA Loans on the Web
While banks remain the most common ground to find SBA Loans, there are more and more online options emerging. Two examples are SmartBiz, an online lender in the San Franciso area, and Live Oak Bank, which is a nontraditional banking system in Wilmington, North Carolina.
For both options, an established business, along with business and personal finances are needed to meet their qualifications. Within the SBA program, Live Oak Bank compares with Wells Fargo when it comes to volume loaned in dollars. Currently, their APRs range between 5.5 and 7 percent. The actual loan amounts can be anywhere from $75,000 to an impressive $5 million for easy small business loans.
In order to qualify for this online small business loan, another requirement states that the business applying must fall withing one of the following industries: agriculuture, funeral services, family entertainment, dental, hotel, insurance, medical, pharmacy, ophthalmic, investment advisory, storage, veterinary, or craft beverages such as craft beers or a winery.
For those seeking SBA loans of less than $350,000, then SmartBiz may be the best option. SmartBiz partners with various banks to underwrite SBA loans between $30,000 and $350,000 with APRs between 7 and 8 percent, which is decent for fast small business loans online.
SBA Loans on Main Street
According to San Franciso District Director for U.S. Small Business Administration Mark Quinn in a recent Forbes article, “Because bank funding typically takes so long or is unavailable for loans under $150,000, most small-business owners turn to alternative, more expensive lending sources like merchant cash advance or credit cards to fill the gap.”
Image Source: BigStock
While sometimes these options are the best solution, it’s more likely that they have been presented as the only solution for small business owners.
SmartBiz is one of the many websites that is “making low-interest SBA loans available to Main Street,” concludes contributer Ty Kiisel, who believes this strategic move will help future small businesses acquire the funding or online business loans they need to survive.
Breaking Down the Fastest Options for Online Business Loans
While we’ve mentioned Kabbage and SmartBiz, there is another option known as Funding Circle that comes into play for those searching for fast small business loans or business loans online.
Funding Circle only takes a few minutes to apply and their APRs are significantly less than those of Kabbage. Consider the following diagram when time is of the essence for your online business loans.
7-10 Business Days
Under 30 Days
Bank Statement, Tax Returns, Income Statements, Balance
None (Link Accounts)
Bank Statement, Tax Returns, Business Ownership Information
Average APR Interest
620 Credit, with 2 Years of Business History
550 Credit, 1Year Business, $50k Revenue
650 Credit, 2 Years Business History
Lien (if over $20K)
Best Option for Fast Small Business Loans
It would appear that Kabbage is currently the best option for fast small business loans. Their paperless application, along with instant approval options, means that same day funding is not only possible but recommended. Therefore, if you need money right away, Kabbage will more than likely be the speediest option for quick small business loans.
With lines of credit between $2K and $100K, Kabbage allows for businesses to pay back their loans over a 12-month period, as long as the other criteria is met, such as a credit score of 550, with a one-year history and $50K average revenue — fairly straight-forward numbers for online business loans.
With the above standards met and 10 minutes to spare, business owners can complete the brief survey without the need for additional paperwork for this quick business loan. Simply link an online business checking account to their network and you are all set. Other options, for the more tech savvy systems, allow for users to link up retail apps like Square, Stripe, Quickbooks, or even Amazon and Etsy accounts.
After the application has been completed and relative links set up, Kabbage’s real-time system uses the business information to automatically assign credit lines with instant approval decisions. In addition, these lines of credit can actually adjust over time if and when a business increases the amount needed or if they decrease amounts needed for quick small business loans.
Funds can be drawn from a credit line and then available on PayPal, for example, within a few minutes. Funds sent to a bank, on the other hand, could take a few days to be delivered. Essentially, any actual connection to a bank means more time to get your money. The only real drawback for Kabbage is the APR, which can be higher at 20 to 80 percent for short-term funding for easy small business loans.
Bottom Line on Quick Small Business Loans
Essentially, when it comes to business loans online, there are countless options on the market, but each come with their own quirks.
As you begin your research for online business loans, consider what you really need first and foremost. Each situation is different, so our guide can only point you in the right direction in picking your small business loans online.
First of all, since the application process is quite simple regardless of which company you choose, it’s important to decide if you need the money quickly for an immediate need or a business opportunity.
Basically, are you trying to make a quick repair and perhaps solve a problem, or are you trying to expand your business with a big picture idea? What do you need your online small business loans for?
Next, decide how long you can actually wait for the money you require for your fast small business loans. While sites like Kabbage appear to be the best with a 1-day turnaround, for those who can wait, there may be better options when it comes to saving money overall with options that have lower APRs.
Does your repair need to happen today or can you wait about a week to make that decision and get things done right for less? What is the best easy small business loan for you?
Or could your business operate with less than you think you need? If so, how can you determine a better or more accurate amount for your online small business loan?
While it’s generally best to have more than you need, when it comes to high interest rates, factoring equations down to the penny may be best. At the end of the day, what is the best quick business loans for you?
Just because these options are easy small business loans doesn’t mean you shouldn’t take the time and effort to determine exactly how much you need and what you can risk to get that amount.
Be prepared, plan ahead, and do your research to find the best online small business loans for you.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.