As a business owner, you’re bound to face challenges and hurdles when running your company. One of the most common obstacles entrepreneurs encounter is unforeseen expenses. Taxes, credit card bills, license fees, and emergencies are some of the unexpected business expenses that throw entrepreneurs off their game. Many business owners apply for quick business loans to secure immediate funding to pay for these expenses.
Ideally, quick business loans should be able to provide you with working capital in as little as one to two days. But at the end of the day, the rate of funding depends on the lending company. If you’re in a cash pinch and you need funds fast, here are five of the best quick business loans for you.
1. Business Line of Credit
A business line of credit works similar to your credit card. The lending company you’re working with will assign you to a predetermined credit limit. You can withdraw funds whenever you need it. Furthermore, you don’t have to repay the entire credit limit assigned to you; you only have to pay for the money you’ve withdrawn plus its interest.
2. Merchant Cash Advance
Technically, a merchant cash advance is not a loan; it’s actually a cash advance against your future credit card sales. You automatically repay the loan as a percentage of your credit card transactions until the amount you’ve borrowed is paid back in full. This is a perfect financing solution for businesses with limited collateral. You can receive the funds from a merchant cash advance within 24 to 48 hours.
3. Invoice Financing
Rather than waiting for 30, 60, or 90 days for clients to pay their invoices, invoice financing helps accelerate cash flow. If you have pending invoices, you can sell those to a third-party company at a discount. Factoring companies will give you 80% to 90% of the invoice value upfront. You’ll receive the remaining percentage of your invoice (minus a transaction fee) once your customers pay their dues.
4. Equipment Financing
As the name suggests, equipment financing provides you with the working capital needed to purchase equipment and machinery. Unlike other types of loans, you can only use these funds for equipment purposes. Lenders offer two types of equipment financing: (1) equipment loans and (2) equipment lease. With equipment financing, you’ll be able to receive and use your funds within 24 hours.
Quick Business Loan Perfect for Unexpected Business Expenses
At some point, your business will encounter unexpected expenses. When this happens, you can either take the initiative or suffer the consequences. Quick business loans provide immediate funding for short-term and unforeseen business expenses. However, the speed of funding ultimately depends on the lending company you’re working with.
SMB Compass understand the urgency when it comes to dealing with immediate expenses. That is why we offer quick business loans for small businesses in the United States. We have financial advisors that can help determine the best solution for you. For questions and inquiries, call us today at (888) 853-8922 or email us at [email protected].