Setting the Record Straight on Same Day Funding
Same day funding can be a lifesaver in situations where you need fast business loans. Same day loans provide convenience, it’s easy to apply, and you get the money you need in a short amount of time, keeping your business afloat.
If cash is low, unexpected expenses are high, or access to cash fast would make or break your business, same day funding is the way to go. You have a lot of options for same day loans and quick funding options, so you can get the cash you need precisely when you need it.
Take a look at the benefits of different kinds of loans, lines of credit, and credit cards below, as well as the differences, to find what might work for you.
Finding Same Day Business Loans
Alternative lenders give you the best opportunity for getting money quickly. These types of lenders can help you get the funding you need outside of traditional banks. Often, the process takes place online, so it’s easy, and it gives you access to a variety of financing options like term loans, lines of credit, and short-term loans.
Applying for financing through a bank can take up to twenty-five hours. Communication back and forth, providing documentation, and signing all the paperwork takes a lot of time, not to mention the time their underwriters take to review your application and your business.
Alternative lenders offer online applications that take just minutes to complete. Same day lenders also have an approval rate of between sixty-one and sixty-four percent, versus the thirteen to twenty percent of traditional banks, meaning you’re more likely to get approved.
You operate an efficient business. Revenue is up, and you have loyal clients. One day, you open up shop, and you notice a massive puddle on the floor and a significant amount of damaged inventory. Your roof leaked overnight!
You are never strapped for cash, but you didn’t anticipate having to make massive repairs and replace so much expensive inventory! Short-term loans are perfect for your short-term financing needs. You’ll be back up and running in no time, but until then, you need a little help.
These loans are typically for amounts between $2,500 and $250,000 and have to be paid back over the course of three to eighteen months. With daily, weekly, or monthly payment plans available, these loans are pretty flexible.
Merchant Cash Advances
Merchant cash advances conveniently allow you to pay the loan back with a portion of your daily credit card transactions. The payments are automatically deducted every day through your merchant account. However, the added convenience comes at a price. Often, the interest rates are very high.
These are very similar to short-term loans in both lengths of term and amount borrowed. If you choose to go this route, you may want to weigh the pros and cons of a merchant cash advance with a short-term loan to determine if the advantages may not be worth the cost for you.
Business Lines of Credit
Business lines of credit open the door for revolving credit for things like working capital, inventory, seasonal gaps in cash flow, paying off debt, emergencies, or other opportunities. It works like a credit card, allowing you to make ongoing purchases, but in many cases, you have access to cash and lower APRs.
Traditional banks offer lines of credit, but so do online lenders, and they can get you approved more quickly. You only pay interest on the funds you draw, but additional capital is available when you need it. It’s a great way to build your business’s credit, but some lenders may require collateral.
In cases where you have outstanding invoices you’ve been trying to collect on for months or even years, invoice financing helps you get the cash you need for unpaid invoices right away. Typically you don’t receive the full amount of the invoice, at least not right away. But it does get you the cash you need now until you can chase the invoice down and receive payment from your customer.
You usually receive between fifty and eighty-five percent of the total invoice up front. You receive the remainder once the customer pays. Some invoice financing charges a fee once the invoice is paid in full and will take a percentage of the total invoice to keep for their trouble.
Business Credit Cards
Business credit cards give you fast access to a revolving line of credit, much like a business line of credit, building credit for your business while you get cash withdrawals or make purchases whenever you need to.
Once you get approved for a business credit card, there’s no hassle or delay in making the purchases you need or giving yourself a cushion when you’re waiting on extra revenue or invoices to be paid. You may not need one right now, but it could help in the future.
Credit cards also help you categorize and track your expenses by analyzing your monthly statements. You only pay interest on the funds drawn, and it doesn’t require collateral. However, business credit cards do have high-interest rates.
Business Charge Cards
Business charge cards are a lot like business credit cards. They have similar perks, annual fees, foreign transaction fees, and rewards. While there are similarities, there are two things that set them apart. They have no spending limit, and they must be paid in full each month.
They still help you build credit, allow you to make purchases, or get cash when you need it. They also don’t require collateral. The most distinguishable difference is the interest rate. There’s no interest rate on transactions unless you don’t pay it off at the end of the month.
The Bottom Line
Fast cash is at your fingertips with any of these options for same day funding. Applying online is easy and fast, but you need to choose the option that’s best for you. Make sure the repayment terms fit your budget and that you are comfortable with offering collateral if needed.
Get the cash you need, when you need it, with same day funding. Check out Quick Loans Direct today.