Business Loans Guide
Quick Business Loans
The benefits of quick business loans
Quick business loans are a great form of finance for businesses of every size. If you need access to capital quickly and don’t want to wait for a traditional approval process, there are a range of quick business loans in the UK.
In many situations a traditional loan could take up to 4 weeks to be processed, but with our comprehensive range of loans we have providers who can release quick business loans online within 24 hours. This guide will take you through the benefits of each type of loan, so that you can find the ideal finance for your business.
Whether you are searching for quick business loans for bad credit, or quick business loans with no credit checks, we can help.
What types of quick business loans are available?
We work with a range of lenders who can offer quick business loans, from £1,000 to a maximum of £20,000,000. Although, usually a quick business loan will be for a small amount which is to be repaid within a year.
The speed of payment with these loans will generally command a higher interest rate, but they will be easier to qualify for as they pose less risk to the lender.
Whether you need additional capital to take advantage of an opportunity or need to release funds for an unexpected essential business costs, we can help you find the most competitive short-term loan.
By partnering with a variety of lenders such as traditional high street banks and also alternative lenders, we can provide loans which are tailored to every situation.
When you begin your search for quick business loans, one of the first forms of funding you will come across is a short-term business loan with a fixed repayment period. They are one of the most popular types of finance for businesses and can provide quick access to the capital required for a one-off expense.
As a traditional fixed-term loan, the amount you borrow will be repaid in regular instalments. This can help you improve cash flow as it will be relatively easy to budget for the set regular repayments.
If you are looking for a more flexible alternative to the traditional fixed-term quick business loans, an overdraft, credit card, or line of credit could be alternative options.
Although these types of quick business loans are not traditional forms of business lending, these form of finance can provide short-term access to capital within a single day.
The lender will provide access to credit with a set credit limit, with interest accruing based on the amount you have borrowed. This means the repayments you make are only based on the amount you have spent, which can provide improved flexibility when borrowing.
If your business needs access to finance but is unsure what the final requirements will be this flexibility is ideal. If your business is looking to borrow a large amount, the available credit may be secured against your business’s assets, such as property, vehicles and stock.
A merchant cash advance can be an ideal way to borrow a set amount, with the repayments required based on your income level. Unlike traditional fixed-loans, these quick business loans do not have a fixed repayment schedule.
The lender will recoup the loan by taking a percentage of the income from the payments you receive via your PDQ machine. This means that to be eligible for this type of loan you will need to accept payments for your goods or services by credit or debit card.
If you are looking for a loan which is based on your income, invoice financing could be the ideal form of quick business loan. Invoice financing is a popular form of loan, which is designed to release the capital you have tied up in slow paying or overdue invoices.
The invoice will be sold to the lender, who will usually provide you with roughly 85% of the invoice amount. Once the invoice is paid, the lender will keep the remaining percentage as their fee for providing the loan.
There are two forms of invoice financing available, with invoice discounting being the most common form of lending. In this situation the business is still responsible for arranging payment with their customer, whereas, invoice factoring involves the lender contacting your customer to chase for the payment.
Am I eligible for quick business loans?
We understand how vital it is for businesses to be able to access quick business loans. We are committed to helping businesses access a variety of loan options at the most competitive interest rates, so that you can grow your company. We know how difficult it can be to compare the array of lenders and their available loans, so we have developed a useful comparison tool.
Our finance finder tool is designed to provide you with access to the most competitive quick business loans, which are selected based on how well they match your unique requirements. The tool will ask a variety of questions relating to the amount you are looking to borrow and the type of repayment terms you require. We will then search our vast panel of lenders to find the ideal quick business loans for your business.
The application process is very quick and easy, simply select the ideal loan from the list of potential lenders and follow the short application steps. The lender will quickly assess your application and will also examine your finances by reviewing financial documents such as your annual turnover, profit and loss accounts and bank statements.
These documents are essential aspects of the loan application, so it is advisable to prepare these in advance to ensure your business benefits from access to quick business loans with short approval times.
If the lender decides to offer you a loan, the interest rate and repayment period will be based on the risk associated with your business. A poor credit rating or unstable financial accounts could mean that you represent a high lending risk. This risk will be passed on to you, through higher than standard interest rates and you may also be required to provide security.
This will be in the form of assets, which will be at risk if your business defaults on the loan repayments. The value of the security you are able to provide must match the amount you are looking to borrow. If your business does not have access to valuable assets it may be possible to offer the lender a personal guarantee, which will take into account the value of your personal assets and credit rating.
If your business falls into financial difficulty and you have provided a personal guarantee, assets such as your home and car could be sold to cover the loan repayment. This could also have a negative impact on your personal credit rating, which could make it difficult to obtain credit in the future.
We are on hand to help your business find the ideal loans to suit your specific requirements. If you would like to find out more about the range of quick business loans which our lenders can offer, please contact our experienced team today.