How to Boost Your Chances of Getting a Same-Day Business Loan?  

You have been looking to purchase new equipment as the new year strikes. Buying it upfront is costly, and hence, you explore the best discounts and used equipment to purchase at a lower cost.  You hit a website offering unbelievable discounts. You authenticate it and find it a genuine one. You don’t want to lose out on grabbing the best deal, but with funds invested in new expansion, you cannot buy.

Here, you can bridge the costs by checking a same-day business loan. Yes, there are some financial facilities that may help you get instant cash for your needs. However, the qualification criteria and interest rates remain competitive. The blog lists how you can improve your chances of getting a same-day business loan in the UK.

An Overview of Same day loans

Securing the right sort of financial deal for your business is challenging.  Small and medium-sized businesses in the UK often need additional funding to cover expenses. You can invest in new opportunities and simply manage the cash flow with these facilities. Otherwise, waiting periods regarding the client payments and some traditional lending methods may prove cumbersome. It is the reason most business owners turn to same-day business loans.

They are less stringent in comparison to other ways to fund your business needs. Moreover, these are not tied to any asset. Thus, you may get one if you meet the financial stability criteria set by the loan provider.  It is usually less complicated; however, you need to be careful during the documentation and when choosing the amount. A good one improves the chances of loan approval.

What do loan providers look for before approving a loan?

Understanding what a creditor looks for before loan approval may help improve your loan approval chances. Here is what you can do before applying:

1. Many fast funding loan providers require the company to be UK-based.
2. You must have a valid UK bank account with a direct debit facility. It should be a separate account used for business purposes only.
3. You should be operating consistently for at least 6-12 months to get the loan.
4. Minimum revenue should be £10000 according to statistics.
5. Must have a complete list of documents (bank statements, business plans, profit and loss statements, tax receipts, etc.)
6. You should generally apply for 4 P.M. to get a same-day loan on time.

How to improve the chances of getting a same-day business loan?

Yes, getting a business loan could be tricky, especially with mismanaged finances and a poor credit score. However, you can improve the aspects before applying for the loan. Here is how to boost the loan approval chances:

• Improve your credit score and report

Identify how much your credit score can improve if you pay certain debts. Analyse the highest interest debts and try to pay them off. It may repair your credit score. Update the information on your personal and business credit scores.

Focus on aspects like business and personal address, email ID, and contact numbers. Additionally, check and report the paid debts or delinquencies. Identify whether you can improve your business plan or sales. It also impacts your credit history in a positive way.

• Ensure up-to-date finances

You would need to explain a lot of things on the financial front to get a loan. It could be explaining the purpose of the loan and why you need a specific amount. How does that amount suffice the requirements? So, you can be ready for that by updating the documents.

Identify and update the bank statements, profit and loss statements, and cash reserve. Check how much your business earned in the previous half. Next, explain how you would make the repayments timely. All these aspects are important to ensure that you can afford the loan.

• Always be realistic about the amount

You may need an urgent loan to fix the equipment. It helps you generate the maximum revenue and does not affect the efficiency. Not being able to generate more products affects the demand and supply curve. Eventually, this may also impact the sales. However, you don’t want to buy the new one. Here, determining the repair costs and the amount you can afford to repay matters the most.

Here is how a loan amount may make all the difference:

For example, you want £35000 for 6 years and 6 months to update the marketing software. Here is how borrowing £25000 for 6 years and 6 months for the same reason may make all the difference:

Parameters	Borrowing 25000 pounds	Borrowing 35000 pounds
Loan term	6 years 6 months	6 years 6 months
APR	7.8%	7.8%
Monthly payment	£393.86	£568.90
Total repayments	£30,721.08	£44,374.20

So, you can see that borrowing a higher amount means paying more eventually. Moreover, getting the exact amount required with a credit is challenging. Therefore, only choose a comfortable amount that you can repay on time. It also reduces the interest and total payment liabilities.

• Fetch the best interest rates and terms

You may believe that you don’t share a choice with a low credit profile. However, that’s completely wrong. You have the full freedom to explore your choices and loan quotes. Determine the lowest possible interest rates and the eligibility criteria. It increases the chances of qualifying immediately. Moreover, you can fetch the best interest rates with detailed research and analysis.

Here are some tips to get the best interest rates on business loans:

• Try to improve your total earnings (investments, sales, expansion)
• Boost your business and personal credit score
• Demonstrate business stability by revealing a solid cash flow, turnover, and a plan for growth
• You can choose secured business finance solutions to fetch low interest. These loans also help you get a higher amount to meet heavy business requirements.

• Prepare for any personal guarantees or extra fees

Yes, the loan is unsecured, but you still need to provide some personal guarantee as security. It is especially possible if you have a bad credit score. It is a legally binding agreement between the loan provider and the borrower to repay the dues in other forms if you default on the loan.

It could be in the form of a person, a business asset, or an idea patent. In the case of a person, you can consider guarantor business loans in the UK marketplace. It could be a business partner, an investor whose financial strength may help you get the loan affordably.  It helps you get a higher amount at low interest rates.

• Submit your application early and be responsive

Time is the essence for same-day business loans. Choosing a later time, like evening, may take at least the whole night to receive it. Therefore, it is better to be punctual and grab the deal early. Identify the amount needed and contact the loan provider at the earliest.

It is because processing a business loan application takes time. It involves initial checks, background checks, and a detailed assessment. Therefore, be ready and updated with the timeline to apply for the business loan. You should keep the documents ready while applying.

Bottom line

These are some of the ways to increase your chances of getting a same-day business loan. Identify your requirements, the amount you can afford to repay, and the loan purpose.  Always check for additional and hidden costs before applying. Identify the time it may take to get a loan. Accordingly, decide whether it may suit your needs or not.