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For hundreds of aspiring entrepreneurs, getting a quick and substantial business loan is like a dream. The traditional financial organizations like banks often turn down the loan requests of new and inexperienced entrepreneurs. This is also true for the small business owners, who do not have any collateral to offer to the banks. A quick business loan could be necessary during any phase of your business. Small business owners seek quick business loans not just for starting or scaling a business, but also for paying their vendors and clearing previous debts. In this post, we provide some practical and helpful ideas for getting quick business loans.
Reliable Hedge Fund Lenders
Often called the corporate ATMs, the hedge fund lenders are known for helping small businesses with easy loans. If you are planning a high risk venture such as a tech startup or asset based company, you should seriously consider contacting the hedge fund lenders. Of course, to secure business funds from hedge lenders, business owners have to create a good pitch. The hedge lenders offer loans from their joint accounts only after some precautionary due diligence. However, hedge fund loans are much quicker than traditional loans. Additionally, be sure to understand all the terms of the agreement, including high interest costs and prepayment penalties. If you secure fair terms, hedge fund lenders can be a great source for working capital.
Online Lending Platforms
There are many online lending platforms for business owners that can provide quick access to cash. Some of these websites can have the money deposited into your account by the next day. These fast cash loans will obviously incur higher APR. But, if you pay them off quickly you can mitigate the additional costs. Consider online lenders when you need business capital fast.
Think About Peer To Peer Lending
Peer-to-peer lending can be both formal and informal. Gone are the days when high risk loans were a business owner’s only option. You can borrow money from any of your supportive friends or family members or even go online to find strangers who are ready to back your business. Businesses can procure quick loans from peer-to-peer lending platforms. The terms of lending are simpler and have comparatively low interest rates. To secure funding, place your loan request online for lenders to bid on it. Using online platforms, you can choose from interest rates and convenient repayment terms. Either way, peer-to-peer lending can be a fast way to get cash for your business.
Peer-To-Peer Lending Options
If angel investors sound like the perfect solution for your business capital needs, there are some companies that will help you to find the perfect investor for your business. We suggest taking these top three into consideration:
- Prosper
- LendingClub
- Upstart
These three best P2P lending solutions will provide you with the money you need on your own terms, so you do not have to worry about meeting requirements for fast business loans with exorbitant rates and fees just to be able to afford a business lunch with a client.
Opt for Home Equity Loan
Another way of procuring medium sized loan for funding a small business is a home equity loan. Only home owners who possess equity are eligible for this type of quick business loans. Subtract what you still owe the bank from the total value of the home. This is the sum on which you will be borrowing a home equity loan. The interest rates for home equity loans are typically cheaper than traditional business loans or lawsuit loans. Another benefit to home equity loans is that they are extremely flexible.
Draw From Retirement Accounts
Small business owners in an urgent need of funds can draw from their own retirement funds. Consult a professional before taking loan from IRA or 401(k) accounts. It would be safer if you opt for the 60 days interest free loans. If you return the owed money within stipulated time, then no fees will be charged. The professional retirement consultant will help you avoid disbursement taxes. If done properly, retirement accounts provide a short term bridge for capital.
Borrow Using Your Credit Cards
If you have already had your first credit card for awhile and have maintained a good credit score, business credit cards are a great way procure a quick loan. On an average, business owners will have to pay an annual interest rate of 16% along with $50 to $100 as fees. Instead, new business card holders can get 0% interest and bonus incentives. The risks are comparatively low to other business lending options. But, if you do not pay back on time, it will reflect on your credit score.
Getting quick business loans is not always easy. Small business owners can try these different methods to get quick loans. In unsuccessful, you may consider theses business loan alternatives. Of course, securing funding is an important part of any business that should be planned carefully.
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