When you’re in a sticky situation and you need cash quickly, consider getting a fast business cash loan.
It’s a lump sum which can be given quickly and on short notice. In fact, the money is typically approved and sent your way within 24 hours, subject to turnover level and affordability.
Bank loans, in comparison, can take a few weeks to be approved.
It’s because of this fast turnaround that it’s best suited for financing short-term business goals The loans are made available between three to ten months and aren?t held against assets, making them more readily available to businesses in need.
Table of Contents
An example of when to pursue a fast business cash loan
Say you hired a freelancer and now you have no money to pay him/ her back. This is also where you realise that with all the hubbub of moving office, you forgot to pay several full-time members of staff.
The clinch” As you thought employees had all been paid, you already allocated all other finance elsewhere.
Traditional business loans can be quite a lengthy process, so you would have to wait and hope you don’t get taken to an employment tribunal.
If you make an online application for a fast business cash loan, you’ll be given the necessary amount.
Ia few months you?ll have made a profit and can pay that money back.
The advantages of fast business cash loan
To state the obvious, you get cash quickly. For an SME, the ability to tap into finance when necessary is crucial.
As was suggested, no assets are required when making an application.
More importantly, less established businesses can apply as well. Even new startups can tap into this quick cash injection but not those that have just established.
In fact, it’s a finance option far more suited towards new and growing businesses compared to others and the typical online application forms make it a quick process.
The disadvantages of fast business cash loans
There are some real risks when it comes to fast business cash loans, so be aware before going down this route.
For starters, it could impact your credit score, in turn impacting your ability to apply for more traditional loans in the future.
It all comes down to whether you can repay that money back reasonably quickly. If you don’t pay the loan back in time, your score will get knocked down a peg.
Depending on the lender, early repayment charges may also apply.
And on the subject of repayments, because you’re receiving a hasty cash injection, the annualised rates may not be pretty.
Typical eligibility criteria for a fast business cash loan
Fast business cash companies will keep a vigilant eye out for whether you can quickly repay the money. Bank statements need to show a squeaky clean repayment history.
Much like a flexible credit line, having a good credit history helps. It’s not something most providers will flag as a requisite though.
The reason why we emphasise its importance is that it will be taken into account when considering how much money will be lent.
No record of credit or debit sales is necessary. But to apply for a fast business cash loan you do need to have been trading for three months.
UK providers of fast business cash loans
| Provider Name | Speed of Loan Acquisition | Borrow Limit | Payment Period |
|---|
Things to consider before taking out a fast business cash loan
Before you take out a fast business cash loan, have you considered these facts?
- While the money comes quick and easy, you’re also expected to pay up in a few months” time.
- You have a lot to lose if you can’t pay back that money. Don?t take a gamble and think you?ll reap profits after the cash injection. Your credit score could lower and you might be declined more traditional loans when you need it during a growth phase.
- Think of when to get the money before making the jump! If anything else happens during this time, you’ve put yourself in a tricky situation.
- Don?t go big with a fast business cash loan. Use it to finance your short-term business needs -ones that aren?t overly expensive, like setting up shop in a different country.
