Getting quick access to funds when you need them can help small business owners manage emergencies, take advantage of growth opportunities, and navigate slow business periods. Profitable businesses usually have their own cash reserves to rely on, but younger companies may need to find financing options that are processed and disbursed quickly. Here are some options to consider.
Table of Contents
Business line of credit
A business credit line gives you access to a revolving credit account so you can withdraw funds as needed. Traditional lenders like banks often have a lengthy application and approval process that spans weeks. However, these days, there are many alternatives to choose from.
You can apply for a business line of credit from an online lender and get approved within just a few hours. If you have your documentation ready and follow the lender’s application process correctly, you could get access to your business line of credit in just one day. The other benefit of online lenders is that they’ll often consider eligibility factors beyond your business credit score. This makes them a great fit for businesses that may not qualify for traditional lending.
Business loan
As with business lines of credit, it’s possible to find online lenders that have a much faster application, approval, and disbursement timeline compared to banks. Some traditional lenders may take anywhere between a week and a month to review and approve your loan. SBA loans can take as many as 60 days to process.
Getting a loan from an online lender is much quicker due to streamlined application processes. In some cases, lenders can review, approve, and fund business loans in as little as 24 hours. Business owners can improve their odds of getting approved fast by organizing their paperwork as early as possible and getting application tips from the lender’s team of financial experts.
Invoice factoring
Business owners awaiting payments from clients can leverage invoice factoring to maintain a consistent cash flow. Invoice factoring (also called factoring receivables and accounts receivable financing) involves selling invoices you haven’t received payment for to a lender. The lender gives you upwards of 90-95% of the invoice value and assumes the responsibility of collecting the payment from your client. Once the clients have paid, you’ll receive the remaining 10% minus the lender’s fee. Instead of waiting 30 to 90 days for client payments, you can access funds from your lender in as little as four days.
Other options
There are several other forms of financing that business owners can consider, but it’s important to evaluate if these options are a good fit for you.
Revenue-based financing: Your lender (or factor) grants you a lump sum in exchange for a percentage of your ongoing revenue. This type of financing offers approval within as little as 4 hours and disbursement within 24 hours (under the right circumstances).
Merchant cash advance: The lender offers a lump sum in exchange for a percentage of the business’s future debit or credit card sales. Some lenders offer funds within a day.
Crowdfunding: If your B2C business is popular with customers, you may be able to crowdsource the funds you need within a short period of time. It helps to have a large social media following or work with influencers to spread your campaign and attract more donors.
Find the right financing for your business
Access to quick small business financing has never been easier thanks to non-traditional online lenders. However, before deciding to apply for a business loan, line of credit, or other form of financing, take time to compare different terms and interest rates from various lenders. This step can be quick and shouldn’t hamper your goal of fast financing.
Varsha 
barua