Are you looking for the best platforms where you can obtain business loans to expand your company? Keep reading because in this article you will discover the top 10 business loan lenders where you can access small business loans fast in 2023
As a business owner, getting a business loan can be the magic touch that will transform your business. A business loan isn’t only for expanding a business, it can be used to keep a business running smoothly. You may need it in settling payroll, equipment replacement, or maintenance.
Where Can You Get Small Business Loans?
Table of Contents
These are the 10 best platforms to access small business loans fast in 2023.
- Fora Financial
- Uplyft Capital
- Funding Circle
- Taycor Financial
- Elevation Capital
- Reliant Funding
1. Fora Financial
Fora Financial is one of the top business loan lenders available. It is one of the best for individuals with no-so-good credit score because it only requires a 500 minimum credit score. With Fora Financial you can get loans starting from $5,000 to $1,500,000 with a repayment term that can stretch from 4 to 15 months.
Before applying for a Fora Financial loan you must have at least $12,000 in gross sales. You should have been in business for at least 6 months. No collateral is required. If your application is approved, you will get funded within 72 hours. Fora Financial has an origination fee of 2.5% of the loan amount or $300 and factor rates starting at 1.10.
It is also important to know that open bankruptcies are not allowed.
Since 2006, OnDeck has been in the loan business and has given over $14 billion to small businesses. OnDeck loan amounts range from $5,000 to $250,000 and through its lines of credit you can access $6,000 to $100,000 credit limit. This is one of the best lending platforms that gives a 12-month repayment term.
OnDeck APR starts at 35.40%. It offers up to 24 months repayment term, a maximum origination fee of 4.00% and can take a few hours to 3 business days to release funds.
To access loans from OnDeck, your business must not be less than 1 year in operation. Another requirement is that you must have a minimum of 625 credit score and must have done at least $100,000 in annual revenue.
Note that businesses in Nevada, North Dakota or South Dakota can’t access loans from OnDeck.
With a minimum credit score requirement of 600, Fundbox has a lower minimum credit score compared to OnDeck and some others on this list. In addition to having a lower credit score, Fundbox is AI-powered and you can get a decision in 3 minutes and fund the next business day. Borrowers can get up to $150,000 through its revolving business lines of credit. Fundbox is one of the best platforms to access business loans with 12 to 24-week repayment terms. Your business should be at least 6 months old and must have done a minimum of $100,000 in annual revenue. The minimum loan amount is $1,000.
Fundbox doesn’t have an origination fee and the APR ranges from 4.66% to 8.99%. It is important to know that only short-term loans are available on Fundbox.
4. Uplyft Capital
Like with Fora Financial, Uplyft Capital, a known name in the lending industry requires the business to have existed for at least 6 months before loan application. Uplyft Capital shares some similarities with Fora Financial like the 500 minimum credit score. Flora Financial and Uplyft are the best options for those with poor credit scores.
Uplyft Capital loan amount is from $3,000 to $1,000,000 with factor rates starting at 1.24 and a repayment term of 2 to 12 months. Also, there is no origination fee on MCAs and loans can be funded the same day of approval.
As part of the requirements, the past three months’ bank statements must be provided and required to have deposited at least $12,000 per month.
“Apply now and get funded in hours” will be a descriptive slogan for Credibly. Credibly is a loan lending platform that boasts of many juicy qualities. This company gives you multiple same-day loan options. With a credit score as low as 500, you can get a loan amount ranging from $5,000 to $400,000.
Credibly is one of the platforms that serves both small and mid-sized businesses. The different loans they give are lines of credit, merchant cash advances and working capital loans. They give a repayment term of 3 to 15 months.
There is an origination fee of 2.50% and factor rates starting at 1.11. Credibly requires an average of $15,000 in monthly bank deposits and 6 months in business to qualify.
Operating two payment structures: Flex 6 where a customer makes a weekly payment over 26 weeks and Flex 12 where payments are made monthly over 12 months, BlueVine is a leading technology that supports small businesses with finance.
BlueVine’s loan ranges from $6,000 to $250,000 and customers get a repayment term of 6 to 12 months. For its lines of credit BlueVine charges a weekly or monthly interest that starts at 1.7% per week or 7% per month. BlueVine’s Simple interest rates start at 6.20% for a 26-week repayment term.
To qualify for a Flex 6 loan you should have a credit score not less than 625, 24 months in business and a monthly revenue of $40,000 or annual revenue of $480,000. For Flex 12, you need a credit score of 650, 3 years in business and must have done revenue of $80,000 per month or $960,000 annually.
There is no origination fee and it takes 1 to 3 business days to receive your funds after approval.
If you are in any state of the U.S. aside North and South Dakota, you can have access to BlueVine’s lines of credit.
7. Funding Circle
Funding Circle is a loan lending company with records that speaks for itself. It has funded over 100,000 businesses and lent over %15.6 billion globally across 700 industries. Funding Circle is known to offer an affordable and fast loan application process.
Funding Circle loan amount ranges from $25,000 to $500,000 and has a repayment term of 6 to 5 years. You can receive your funds within 48 hours after approval. To qualify for a loan you need a credit score of at least 660 and 2 years in business, a collateral and $1.4 million in annual sales.
Funding Circle has an origination fee of 4.49% – 8.49% and APR range of 11.29% to 30.12%.
8. Taycor Financial
Taycor is a leading business loan lender that offers a variety of loan options from equipment financing to lines of credit. Its loans range from as low as $500 to $5,000,000 and a minimum of 3 months to 2 years in business depending on the loan amount.
Taycor Financial requires a 550 credit score and $96,000 annual revenue. It also has an APR of 4.99% to 35% and factor rates range from 0.96 to 1.60.
It typically takes 24 hours to get funded and has a repayment term of 2 months to 25 years. The origination fee is 0 to 5%.
9. Elevation Capital
Elevation Capital stands out on this list with its 120-day to 12-month average repayment term. This business loan lending company offers borrowers loans ranging from $5,000 to $10,000,000 with a low minimum credit score requirement of 550. It can take up to 10 business days to get funds after approval.
There are a variety of loan options including invoice factoring and accounts receivable financing. The factor rate is from 1.12 to 1.36 and the origination fee of 0.00% to 2%.
To get funded Elevation Capital demands a $150,000 annual revenue record and must be at least 6 months in business.
10. Reliant Funding
Reliant Funding is a legitimate business loan lender that requires as low as a 525 credit score. If you want a loan of anything between $5,000 to $400,000 with a repayment term of 3 to 15 months.
The factor rate starts at 1.10 and the origination fee is $499 for funding amounts up to $50,000 while there is no origination fee for higher amounts and it requires 6 months in business.
It takes a 24-hour period to receive your funds after approval from Reliant Funding.
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What is a Fast Business Loan?
This is a type of business loan that is known for its quick and less rigorous application process. It usually has less strict requirements when you compare it to traditional loans. Online loan companies are the ones that often offer. Funds are often released the same or the next day after approving the application.
It can be a worthy alternative to traditional loan institutions for a business that has only been in business for less than 2 years. This is also a better option for individuals with a bad credit score though they won’t be able to access more than $100,000 in most cases.
How Does a Fast Business Loan Work?
With fast business loans, you can apply and get a decision response in minutes or a few hours and in many cases, you can receive funds the same day.
One of the top features of a fast business loan is the streamlined application process, fewer requirements and fast funding. These loans can either be secured or unsecured and most times these loans come with shorter repayment terms and higher interest rates than the traditional loans. Therefore carefully utilize your fast small business loans from any of the platforms we shared earlier.
What is the Difference between Secured and Unsecured Loan?
Should you go for a secured or unsecured loan? It depends, therefore you have to make your decision based on your reality.
Here are a couple of things to note:
- Secured loans need collateral while unsecured loans don’t.
- There are more strict requirements for unsecured loans compared to secured ones.
- Unsecured loans are funded faster than secured loans.
- Interest rates are mostly higher on unsecured than secured loans.
Requirements for Fast Business Loans
Most fast business loan lenders typically focus on a few things when making a decision. These requirements may vary depending on the lender.
These are the common requirements from the lenders in this list:
- Credit score: 500 to 660
- Time in business: 3 months to 3 years
- Revenue: $12,000 to $80,000 per month and $100,000 to $960,000 annually.
Types of Fast Business Loans
You have many fast business loan options to choose from depending on your needs.
Online Business Term Loans
Everything is done online just as the name implies. The borrower applies for the loan online and can receive a decision in minutes. You will receive your funds within hours or a few days. How fast you will receive your business loans from these platforms depends largely on the borrower’s bank.
The funds from online fast term loans are disbursed in a lump sum and the interests are fixed. They mostly have more strict eligibility requirements and once you release the funds to the borrower, the loan starts accruing interest. This type of loan usually has a short repayment term and you can pay in installments across the period.
Business Lines of Credit
One of the direct differences between business term loans and business lines of credit is that loans are based on as-needed basis and a borrower has the chance to repay and borrow multiple times during the drawdown period.
Business lines of credit loans usually come with short repayments like a business term loan if you are using recommended platforms. The best business lines of credit most times have a less than 12 months repayment term.
Equipment Financing as the name suggests is meant for financing the acquisition of equipment. The proposed equipment during application for this loan acts as the collateral and this makes it easy for new business owners who don’t have many assets for collateral.
This type of loan is best for businesses that need equipment to help grow their business. Therefore make sure your business needs the equipment before applying.
Invoice Factoring is a situation where a business sells its outstanding invoices to a factoring company. The implication is that the factoring company becomes responsible for the collection of payment.
In Invoice Financing, you borrow money using the business’s outstanding invoices. This means the business still handles the collection of payments but uses the funds to repay the loan.
With MCA, a business owner can borrow cash against future sales receipts. MCAs rely on credit card sales volume to determine the amount a borrower gets. This means that the loan is repaid from future credit sales or automatic clearinghouse (ACH) payments monthly or weekly.
This can be a great option for borrowers with a bad credit score or lower annual sales volumes. However, the disadvantage is that merchant cash advance loan uses factor rates instead of interest rates. Using factor rates instead of interest rates makes it a high-risk option for some borrowers.
Pros and Cons of Fast Business Loans
Getting funded in hours or a few days sounds great but like most things in life, a fast business loan may be the best for one situation and worst for other situations. Below is a list of some of the pros and cons of a fast business loan.
Pros of Fast Business Loan
- Easy application process: Fast business loans have an easy and streamlined application process that can be completed in minutes.
- Fast approval and funding speeds: Getting approved for a loan is fast. This is because a decision can be made in minutes and funds disbursed within a few hours.
- Wide selection of financing options: With fast business loans you are not limited. You have multiple options to choose from.
- Good for emergencies: It can also be very handy in the face of emergencies.
Cons of Fast Business Loan
- Short repayment terms: Fast business loans come with shorter repayment periods and that can make it a bad option in some situations.
- Higher cost of borrowing: It is more expensive to get fast business loans compared to the more traditional loans.
- Smaller loan amounts: Because in most cases loan amounts are determined by the credit score of the borrower like with terms loan, lenders offer small loan amounts in some cases.
- May result in a cycle of debt: Fast business loans have a shorter repayment term and also higher cost of borrowing and this can result in a cycle of debt if a borrower defaults.
When to Consider a Fast Business Loan
If you are at a tight corner in your business where you need quick cash to offset some debts or some emergencies, a fast business loan will be a good option. Fast business loans can help you sustain operations until revenue increases and can take over.
How to Get a Fast Business Loan
Choose a fast business loan lender that operates online like Fundbox that uses AI to process an application and make decisions in minutes. Speed is a valid factor but don’t base your decision on speed alone. Consider the rates and the repayment terms.
As much as you need a fast business loan to sort out issues, you don’t want to fall into debt while trying to meet up.
How To Get a Fast Business Loan With Bad Credit
The easiest way to get a fast business loan with bad credit is to go for lenders that have simpler requirements like a low credit score like Fora Financial and Uplyft Capital.
Note; These kinds of loans are usually smaller in amount and with higher rates.
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A fast business loan is a good alternative financing method that can be very useful for businesses that can’t meet the many requirements of traditional loans.
Fast business loans have an easier application process, fewer eligibility requirements, and a fast funding time. However, it comes with a short repayment term and high rates.
Make sure that any decision is best for your business by considering every factor.