Can you get a same-day business loan?
Online lenders may offer you same-day business loans. Companies like BlueVine and OnDeck tout turnaround times from application to funding of as little as a day. Other alternative lenders, such as Credibility Capital, can provide loans as quickly as three days.
But fast business loans shouldn’t be your first option to borrow money. Rather, they’re designed to help with an emergency or to seize a time-sensitive opportunity. That’s because these loans may come with higher interest rates and fees compared with those from traditional lenders, which take more time to fund.
Where to look for same-day business loans
Alternative lenders are likely your best bet for a same-day business loan. These lenders use technology to evaluate and process applications faster than traditional lenders, and tend to be more flexible with what they consider acceptable credit scores, as well.
While you’ll need to look to alternative lenders for same-day business loans, that doesn’t mean you’ll lack options. The loans available to you may take many shapes — from traditional term loans to lines of credit to cash advances. Here are some options to consider: Business lines of credit. This funding lets you take out money as needed up to a certain limit. You pay interest on only the amount you use, making business lines of credit a good option if you might need an emergency business loan to cover expenses today and in the future.
Term loans. These loans offer an upfront lump sum that you repay over a set period of time and typically have larger maximums than lines of credit. If you need same-day funding to cover a big expense with a known cost, a term loan may be a good fit.
Invoice factoring. This process converts outstanding invoices into fast cash. With invoice factoring, you sell a lender your unpaid invoices at a discount. In that way, it is not a business loan, strictly speaking. But invoice factoring can get you cash the day you need it instead of waiting on customers to pay.
Business credit cards. Don’t overlook this option for fast financing. If you have good to excellent credit (a FICO score of 690 or above), you may qualify for near-instant approval on a business credit card. Some issuers also let you use your card immediately by providing its number before the physical card arrives. One potential same-day funding option to be wary of: merchant cash advances, or MCAs. These loans can carry triple-digit annual percentage rates and require frequent payment, which should make them a last resort.
How to get a same-day business loan
Evaluate your timeline. Some business needs — such as a burst pipe — might need attention and money right away. But you may be able to wait a few days or weeks for others. If you don’t truly need funding today, you may want to consider a lower cost option like an SBA Express loan that has expedited, but not immediate, funding time frames. Know your credit score. The stronger your personal credit history, the easier it will typically be to receive fast financing. If you don’t know your score, you can get it for free from NerdWallet. Same-day business loans for poor credit are available, but the combination of speed and a risky credit profile means you’ll likely pay a premium.
Follow the lender’s directions. A lender may advertise same-day business loans, but that’s not a guarantee. Make sure your application includes everything the lender asks for to avoid delays — and watch for fine print. For example, if you opt for BlueVine to send funds via ACH transfer (instead of paying for a business wire), funding can take up to three days.