Fast Business Loans: How to Get Funded in 24 Hours or Less

A business loan could be used for a variety of purposes. For instance, you may have to rely on a business loan to bridge the gap in working capital or to buy equipment. Business loans could be secured and unsecured. When you borrow a large amount of money, you will certainly have to put down collateral. Unsecured business loans come with a shorter repayment period, which largely depends on a lender’s policy and the loan size. However, secured business loans come with a repayment period of more than five years.

Unsecured business loans involve greater risks than secured ones because lenders do not have the collateral. They cannot turn to any of your business assets to liquidate to cover their money in case of a default. If you fall behind on the payment of a secured business loan, you are highly ar a risk of losing your collateral.

When it comes to borrowing money, especially if you need it to fund emergencies, you want it to be approved as soon as possible. Secured business loans involve loads of formalities, so it is not possible to approbate your loan application within the same day. These formalities include your credit score check, business credit score check, business profitability, a business plan if needed, and the like.

However, if you need a small amount of money to fund the cash flow problem, there is a possibility of getting a business loan within the same day.

Ways to have your business loan approved within 24 hours

Here is how you can improve your chances of getting approval for a business loan within a day:

• Apply online

Of course, if you need a business loan within the same day, direct lenders would be better alternatives than banks. Traditional banks follow the strictest criteria even if you need an unsecured business loan. Direct lenders are more flexible than banks to approve applications as fast as possible.

Direct lenders allow borrowers to apply for fast business loans in the UK online. Once you have picked a lender from whom you want to borrow money, you should fill in the form online and submit it for consideration.

Lenders use advanced algorithms to shortlist business applications. Those applications are pre-approved and align with the lender’s policy. After an initial stage of approval, your credit score is checked, and then the final decision is made. The whole process gets completed within the same day. Lenders normally take a few minutes to transfer funds to your bank account after you sign the agreement.

• Apply to a lender with the fastest approval

Every lender has their own methods to assess your application. Further, it also depends on the number of applications they receive on the same day. Those who run hard credit checks and additional formalities, like banks, would certainly take a couple of days to approve your application.

You should carefully look for lenders that provide the fastest approval. You can get this information from their websites. It is worth noting that lenders may complete the assessment of your application on the same day you put in the loan application, but you might get funds transferred to your bank account the next day.

• Make sure that you have all the documents

Although small, unsecured business loans ensure quick funding, it does not mean that lenders will not carefully peruse your repaying capacity. All documents are thoroughly checked. Make sure that you have all documents ready in advance, so no time is wasted to complete the process.

A lender generally prefers income sources and bank statements. Because you are applying for a business loan, you would need to submit a profit and loss statement. Lenders pay attention to it to know whether your business generates enough profits to repay the debt. In addition, a bank statement is also checked to understand the inflow and outflow of cash.

If you are looking to apply for a business loan for your start-up, you may also have to submit a business plan. A business plan ensures how likely your project is successful. If your lender believes that your project is profitable, they will most likely be willing to approve your application faster.

Whether you take out a small business loan or a large business loan, on no account can you avoid credit checks? Every lender will run hard inquiries. You might come across some lenders who claim to provide you with quick business loans with no credit checks in the UK.

Bear in mind that no lender can actually approve your business loan without any credit checks. If any lender claims to provide these loans, you should immediately understand that they are loan sharks. Such loans do not exist at all. If any lender provides business loans without any credit checks, they will charge very high interest rates. You will most likely find yourself in debt.

If you are worried about your credit rating, you should apply for these loans from a lender who runs soft credit checks like TheBusinessFunds.

• Be aware of all terms and conditions

As every lender follows different terms and conditions, you should do proper research before applying for a loan. Make sure that the lender you are applying to follows terms and conditions that you easily meet. For instance, if you are applying for a business loan with a bad credit rating, you should know what bare minimum credit rating you must have to be accepted.

You can come to know about these details from their websites. If you cannot find any related information, contact them to acquire those details. This awareness would prevent you from delaying the approval of your loan application.

Summing up

You can get business loans approved the same day you put in the loan application, provided you keep all documents ready and apply to a lender who ensures the fastest approval. Research a reputed direct lender so you do not end up with expensive deals.