Cost is an important factor when choosing among business loans. But sometimes “fast” and “easy” are equally important.
SBA loans from banks, for example, are great for keeping loan costs down, but the protracted application and underwriting process means it can take months to get funded. When you can’t wait — you have an inventory order, emergency repairs, or you don’t want to miss out on a business acquisition — online lenders can provide fast, easy business loans at higher approval rates than banks.
JUMP TO OUR RECOMMENDATIONS:
- If you need fast cash and have at least $100,000 annual revenue
- If you’re looking to expand and have at least $150,000 annual revenue
- If you need a line of credit and have at least $75,000 annual revenue, 600+ credit score
- If you have solid finances and want a faster SBA loan
Here are four options for fast business loans depending on your qualifications and your business’s needs:
Fast business loans from OnDeck:
- When you need cash within a day or two
- Have annual revenue of at least $100,000
- Have a personal credit score of at least 500
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Minimum qualifications | Typical borrower |
|---|---|---|
| Personal credit score | At least one owner with 500 or higher for term loans and a majority owner with 600 or higher for lines of credit | A personal credit score over 600 |
| Time in business | At least 12 months | Median of 7 years |
| Annual revenue | $100,000 or more in the last year for term loans and $200,000 or more for lines of credit | Median of $600,000 |
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OnDeck’s business term loans are a good option for a short-term expansion opportunity, such as hiring new employees or purchasing inventory. The lender works with most types of businesses, including restaurants, retailers, doctors, dentists, auto body shops and beauty salons.
Speed: You can complete OnDeck’s online application in just 10 minutes, with a decision from the lender in minutes and funding as fast as one business day. Applying is quick and easy: Supply basic information, including a business tax ID, three months of credit card statements, one to three months of bank statements, and your Social Security number and driver’s license number.
ONDECK LENDING TERMS:
- APR: 9% to 98%
- Term loan amount: $5,000 to $500,000
- Term loan duration: Repaid daily or weekly over 3 to 36 months
To qualify, you can’t have had any personal bankruptcies in the last two years, and make sure your industry is not among those on the company’s restricted list.
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Fast business loans from Dealstruck:
- When you need money for a business expansion
- Have a minimum personal credit score of 600
- Are profitable and earn at least $150,000 in revenue annually
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Minimum qualifications |
Typical borrower |
|---|---|---|
| Personal credit score | 600 | 660 to 700 |
| Time in business | 1 year | About 5 years |
| Annual revenue | $150,000 | About $1 million to $2 million |
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For business expansions, Dealstruck offers a term loan that allows you to borrow from $50,000 to $250,000, repaid monthly over a period of six months to four years.
Speed: You can get prequalified for a loan online in about 10 minutes and receive an offer letter in two to three days. If you’re approved, funding occurs within four days to 20 days, or about 10 days on average.
During the application process, you’ll be required to submit a minimum of three months of business banking statements, two years of business tax returns, and one year of personal tax returns.
DEALSTRUCK LENDING TERMS:
- APR: 11% to 28%
- Term loan amount: $50,000 to $250,000
- Term loan duration: 6 months to 4 years
To qualify, borrowers must not have had a personal bankruptcies within the last two years, and a lien on your business assets is required.
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Fast business loans from Lending Club:
- When you need a line of credit to handle unexpected expenses
- Own at least 20% of your business
- Have a personal credit score of at least 600
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Minimum qualifications |
Typical borrower |
|---|---|---|
| Personal credit score | 600 | 700 |
| Time in business | 2 years | 11 years |
| Annual revenue | $75,000 | $1 million |
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Lending Club recently introduced a business line of credit that provides access to $5,000 to $300,000. You borrow cash on an as-needed basis and pay a small fee each time you borrow and interest on the amount borrowed.There are no fees for keeping the line of credit open and unused. This flexibility makes it a better option for handling unexpected expenses than for one-time investments.
Speed: Small businesses can complete Lending Club’s online application in about five minutes and get an immediate decision at no cost and without affecting your credit score. You’ll be required to submit documents only if you’re approved (three months of business bank statements and business tax returns).
Depending on how quickly you submit the required documents, funding can be as fast as two days, or it can take a week or two. Funding also can take longer for larger credit lines of credit.
LENDING CLUB LENDING TERMS:
- APR: 8% to 32%
- Line of credit amount: $5,000 to $300,000
- Line of credit duration: Up to 25 months
Borrowers should note that collateral is required on lines of credit of more than $100,000; Lending Club files a lien that allows the company to seize your business assets if you default on the line of credit.
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Fast business loans from SmartBiz:
- When you have strong personal credit and a strong business
- Want the lowest-cost business loan
- Are looking for a faster SBA loan and don’t mind paperwork
SmartBiz uses its online platform to provide SBA loans but with an easier application process and loans funded at a much faster pace than with traditional banks. A 10-year repayment time frame makes it a good option for a major expansion or a large one-time investment, such as the purchase of equipment or real estate.
Speed: Apply online and be prequalified in about five minutes after entering your business and personal information. The application can be completed in about half an hour if you have your documents ready. SmartBiz requires more documents than most online lenders because it’s underwriting a Small Business Administration loan.
Required documentation includes the last two years of business tax returns and personal tax returns, articles of incorporation and lease documents. However, the application does not require a business plan or projections.
If you’re approved, most loans take a few weeks to fund, says Evan Singer, general manager at SmartBiz. This compares with the several months it typically takes for SBA loans at banks.
“Being organized is key,” he says. “If you know where to access your business-related documents before you start the online application, you’ll be ahead of the game.”
SmartBiz also provides a dedicated relationship manager who can answer questions during the application process.
SMARTBIZ LENDING TERMS:
- APR: 7% to 8%
- Loan amount: $30,000 to $350,000
- Loan duration: 10 years
To qualify, you can’t have had a bankruptcy or foreclosure in the last three years, no outstanding tax liens, no recent charge-offs or settlements, and you must be current on government-related loans.
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Fast business loans: Next steps
Most banks take a month or more to approve and fund small-business loans. Several online lenders, however, can get you funded within a day or a few weeks. Borrowers can speed the process up by knowing what lenders require — for example, minimum personal credit score — before applying and by having documents in hand, says Michelle Somes-Booher, consulting program manager at the Wisconsin Small Business Development Center.
Knowing the requirements helps you zero in on the right lender for you, and “missing documents are what usually holds things up, so find out what they need from you,” she says. Business bank statements, tax returns, a personal resume and a business plan are common documents required by lenders.
Find and compare small-business loans
NerdWallet has come up with a list of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness and user experience, among other factors, and arranged lenders by categories that include your revenue and how long you’ve been in business.
Steve Nicastro is a staff writer at NerdWallet, a personal finance website. Email: Steven.N@nerdwallet.com. Twitter: @StevenNicastro.
The post was updated. It was originally published on Nov. 20, 2015.
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