One of the biggest challenges that small businesses face is the difficulty in obtaining funding from traditional lending institutes. Banks and Credit Unions often require extensive requirements for businesses and may require personal guarantees from small business owners.
In addition, the lack of a proven track record of the business creates problems for small businesses in meeting requirements for traditional loans. The paperwork and requirements for a traditional loan, plus the time it may take for approval or consideration of the application, can be overwhelming for many business owners.
A Better Option
A better option to obtain quick business loans is to use an online lender. These companies are set up to streamline applications and to look carefully at the business from an individual perspective. Rather than simply rejecting an application based on a limited business history, there will be a more complete review, with options provided for the applicant to consider.
What About Collateral?
There may be some online lenders that require some form of security on a loan. Other online lenders may provide unsecured loans, which can speed up the lending process considerably. These types of quick business loans use a deposit into the company bank account and also processes the payments for the loan through that same account.
Without the need for collateral or security on the loan, it keeps the business from having to tie up assets in collateral that may impact several aspects of the financial statement.
When to Use the Loan
There are many different uses for quick business loans. Businesses may have an increase in sales or demand, with the money from the loan used to boost inventory, hire new staff or to take advantage of opportunities.
Additional uses of business loans that can be provided in just a few days include the ability to make payroll, to buy equipment or to offer marketing programs that will generate additional business and growth potential.