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What is an emergency business loan?
An emergency business loan is a form of financing that is used to manage last-minute or urgent expenses. The loans are usually issued in one lump sum, with borrowers making repayments, along with interest and fees, in regular monthly, weekly or daily payments. Quick business loans can also come in the form of a merchant cash advance, which is repaid from a percentage of the business’ credit or debit card sales, or a business line of credit, which allows borrowers to only pay for what they use.
Can I get emergency business funding with bad credit?
Although having a great credit score will vastly improve your chances of being approved for an affordable loan with a low rate, it’s still possible to find a loan with bad credit. Some lenders have lower credit score requirements, while others take a holistic approach to evaluating your application and have no minimum required score at all. Regardless of what your financial qualifications look like, you can likely find some form of funding that suits your business.
» MORE: Bad Credit Business Loans
How much do you need down for a small business loan?
Not all small business lenders require a down payment; Most online lenders have an annual revenue requirement and base their decision off of that. However, depending on the size of the loan, some lenders may require borrowers to commit to a UCC-1 lien, or collateral agreement. This means that the lender can take some portion of your assets, either personal or business in case you default on the loan.
What is the easiest business loan to get with bad credit?
LendingExpress offers business loans between $5,000 and $500,000, with no credit score requirement. If you have a high annual revenue and an established business, this lender may be willing to work with you, even if you have a poor credit score.
Additionally, you may want to look into short term loans if you have bad credit. Because these loans are repaid within a short period of time, ranging from a few weeks to a few months, lenders are more willing to work with high risk borrowers. If you don’t qualify for a short term or regular term loan, you can also look into a merchant cash advance. However, this form of funding can be one of the most expensive forms, so make sure to only take this route if you’ve exhausted all other financing options.
Are emergency business loan funds available instantly?
Many online lenders will disburse funds within just a few minutes or within a business day. In this article, we’ll take a look at some of those lenders that will provide you with almost immediate access to cash.
Emergency Loan Options for New Businesses - Quick & Urgent
LendingExpress
LendingExpress’ minimum required time in business is just three months if you make $10,000 or more in monthly revenue, or six months if you make between $3,000 and $10,000 per month. Additionally, the platform takes a holistic approach to its application evaluation process, and has no minimum credit score requirement. This loan marketplace connects borrowers to products ranging between $5,000 and $500,000, with repayment terms ranging between three months and 10 years.
Kabbage
To qualify with Kabbage, your business should have at least a year of operation under its belt. This lender offers business loans with amounts ranging between $2,000 and $250,000, and APRs starting at 24% with a maximum of 99%. Their loan terms come in periods of six, 12 or 18 months, and their minimum credit score is just 560. If you’re facing a financial emergency, you may be able to find a loan that funds within as little as a few minutes with this lender.
» MORE: Kabbage Loans For New Businesses
Lendio
This loan-matching platform requires just six months in business and a credit score above 550. Borrowers can access loans of up to $500,000, and some of its products can fund as soon as the next business day.
Best Emergency Short Term Business Loans
LoanBuilder
LoanBuilder is a lending service that is operated by PayPal and gives borrowers access to loans of up to $500,000. To qualify, you should be a PayPal user and have a monthly revenue above $3,500. Most of their repayment terms range between 13 and 52 weeks, with funds becoming available within as little as one business day.
OnDeck
OnDeck’s loans range between $5,000 and $500,000, with APRs as low as 16.7% and as high as 99.6%. Their minimum credit score requirement is just 500, and their loans can fund as soon as the next business day. However, this next-day funding time isn’t guaranteed, so if you need cash within 24 hours, you might want to consider another lender.
» MORE: OnDeck Short Term Business Loans
CAN Capital
CAN Capital offers a quick and easy application process, with funds becoming available within a short window of time. Their loans range between $2,500 and $250,000, the repayment must be made within a maximum of 24 months.
FundingCircle
Funding Circle’s loans range between $25,000 and 500,000, with APRs starting at 7.4%. To qualify, borrowers should have at least two years in business and credit scores above 620. Their loans typically fund within ten business days, but borrowers have anywhere between six months and 10 years to repay the loan.
» MORE: FundingCircle Business Loans For Fair Credit
Fundation
Fundation offers loans ranging between $20,000 and $500,000, with APRs as low as 8% and as high as 30%. Their loans typically take around one to three business days to fund, and come with repayment terms ranging between one and four years.
» MORE: Fundation Business Loans Review
What are other ways to get emergency funding fast?
If you’re having trouble qualifying for loans or some just look too expensive, you still might have other options. In addition to applying for loans specifically for businesses, you can apply for a personal loan yourself and use the funds to pay for your urgent expenses. You can also look into invoice financing services that will buy your unpaid invoices, immediately disburse a portion of the funds, and reclaim the cash that was borrowed once the invoices are paid.
Lastly, if you have a friend or family member who is willing to help you out, you also might be able to cover some of your expenses by borrowing from a person instead of a company.
Conclusion
Dealing with a financial emergency is tough. It requires business owners to think quickly and make fast decisions. That doesn’t mean that you should agree to borrow from the first lender who makes you an offer, however. Take the time to fill out multiple applications with online lenders before taking the first loan offer. As many applications only take a few minutes to complete, devoting that extra half hour to evaluating your options can save you thousands of dollars down the road.
