The key to quick start-up business loans is speed: you may submit the application and upload supporting documentation in a matter of minutes, and you could hear back from the lender in a matter of hours. The money can appear in your bank account in a day or two if it is accepted.
These loans can assist your company in covering unexpected expenses, seizing financially advantageous opportunities, and paying bills in the event that invoices are not paid. Even though they may have certain drawbacks, such as longer payback periods and higher annual percentage rates, the finest rapid business loans provide huge loan amounts, flexible qualifying conditions, and speedy financing schedules.
Best Start-up Business Loans
- OnDeck – Best for Short-term
- Lendio – Best for Lender Comparison
- American Express® Business Line of Credit – Best for Lines of Credit
- BlueVine – Best for Flexible Lines of Credit
- Fundbox – Best for Quick Approvals
- Biz2Credit – Best for Loan Option
OnDeck (BEST FOR SHORT-TERM LOANS)
| OnDeck | Loan amounts | APR range | Minimum Credit Score |
| Review: 4.5 | $5,000 to $250,000 | Not disclosed | 625 |
Why we chose it
A personal account manager will get in touch with you within an hour of submitting an online application with Funding Circle to go over your requirements and collect supporting documentation. In as little as 24 hours after reviewing your application, the lender decides whether to approve it, at which point you receive funding the following business day.
Entrepreneurs are eligible to apply for a line of credit, term loans with terms varying from six months to seven years, and 7(a) SBA loans. (Funding Circle reports that although term loans and credit lines can be funded rapidly, SBA 7(a) loan approval may take up to 13 days.) The majority of business uses for the money are permitted, and you can establish business credit by repaying the loan.
The disadvantage of Funding Circle is that it has stringent qualifying requirements, such as a two-year minimum business duration, a minimum personal credit score of 660, and lending restrictions on specific industries (such as real estate, gambling, marijuana, nonprofits, and for-profit companies dealing with real estate, weapons, and pornography). Funding Circle reports that the average borrower has 11 years of business experience and $1.4 million in annual sales, though this is not necessary.
Pros & Cons
| $5,000 to $250,000 in term loans and $6,000 to $100,000 in lines of credit. Same-day funding low minimum credit score required | × Requires a minimum yearly revenue of $100,000; × Must have been in operation for a minimum of one year; × Does not lend to companies located in Nevada, North Dakota, or South Dakota. |
Lendio (BEST FOR A LENDER COMPARISON SITE)
| Lendio | Loan amounts | APR range | Minimum Credit Score |
| Review: 4.5 | $500 to $5 million | As low as 3% | 560 |
The Reason We Selected It
Through its online marketplace, Lendio, potential borrowers can interact with both traditional banks and nonbank internet lenders for business loans. Lendio connects company owners to over 75 lenders with only one application. Lendio has assisted small business owners countrywide in obtaining approximately $12 billion in funding during the course of its existence.
Lendio may be viewed by applicants as a one-stop shop. Applying for business loans, credit lines, SBA loans, equipment financing, invoice factoring, merchant cash advances (MCAs), commercial mortgages, and equipment financing is possible. However, Lendio does not disclose particular terms because it is a marketplace rather than a lender. Rather, you will have access to its lending partners, who will assist you in locating the greatest deal for your particular requirements.
Pros & Cons
| You can apply once and get in touch with over 75 lenders. Numerous loan products, such as SBA loans, credit lines, and term loans | ×Prepayment penalties are imposed by certain lenders. ×The terms and funding times differ based on the particular lender. |
American Express® Business Line of Credit (BEST FOR SMALL AND LARGE LINES OF CREDIT)
| American Express® Business Line of Credit | Loan amounts | Monthly fee | Minimum Credit Score |
| Review: 4 | $2,000 to $250,000 | Varies by loan term | 660 FICO at the time of application |
Why We Picked It
The American Express® Business Line of Credit (previously Kabbage from American Express and Kabbage Funding), which enables business owners to obtain finance between $2,000 and $250,000. is the finest feature of the American Express Business Blueprint. The repayment terms are twelve, eighteen, and twenty-four months.
Credit line each month that a customer’s loan balance is unpaid, they are assessed a fee. For six-month loans, total monthly fees range from 3% to 9%; for 12-month loans, they range from 6% to 18%; for 18-month loans, they range from 9% to 27%; and for 24-month loans, they range from 12% to 18%.
American Express Business Blueprint offers a line of credit in addition to other helpful resources for small business owners, such as a mobile app that offers in-depth cash flow analysis.
Pros & Cons
| Backed by American Express No prepayment penalty | ×Monthly fees on unpaid balances ×Requires personal guarantee |
BlueVine (BEST FOR FLEXIBLE LINES OF CREDIT)
| BlueVine | Loan amounts | APR range | Minimum Credit Score |
| Review: 4 | $6,000 to $250,000 | Not disclosed | 625 |
The Reason We Selected It
Financial technology company BlueVine offers financing options to small businesses all throughout the country. It focuses on business checking accounts and credit lines especially. BlueVine will no longer be providing invoice factoring as of December 2021.
Entrepreneurs that want to take up a line of credit as needed can get up to $250,000 in funding. Start-ups pay every week for 26 weeks with BlueVine’s Flex 6 payment plan. Furthermore, you can qualify for a credit line increase on Flex 6 after 45 days of consecutive payments. Although BlueVine also provides its Flex 12 structure, most businesses are not suitable for it as it necessitates at least three years of company.
In addition, BlueVine levies weekly or monthly fees for its credit line. For line of credit draws, the standard rate is 1.7% per week or 7% per month.
Pros & Cons
| A five-minute decision time and funding within hours are possible. Credit lines up to $250,000 are available. A low credit score is required. | ×Its line of credit has no mobile application ×Required monthly revenue ×Unavailable to companies in the United States, Puerto Rico, and North and South Dakota. |
Fundbox (BEST FOR QUICK APPROVALS)
| Fundbox | Loan amounts | APR range | Minimum Credit Score |
| Review: 4 | $1,000 to $150,000 | Start at 4.66% | 600 |
The Reason We Selected It
Fundbox is a business financing platform driven by artificial intelligence that expedites the application, funding, and decision-making processes. It provides funding as early as the following working day and makes choices in three minutes.
Fundbox offers two company funding solutions to potential borrowers. Owners of businesses may apply for up to $150,000 in revolving business credit with 12- or 24-week payback terms. As you pay back your line of credit, your available credit increases again.
Pros & Cons
| Get a decision in three minutes or less. Minimal credit score prerequisite Funding the following day | ×There are only short-term repayment terms offered. ×Very little line-up credit, up to $150,000 |
Biz2Credit (BEST FOR LOAN OPTIONS)
| Biz2Credit | Loan amounts | APR range | Minimum Credit Score |
| Review: 4 | $25,000 to $500,000 | Not disclosed | 650 |
The Reason We Selected It
Two start-up loan options—term loans and working capital loans—ranging from $25,000 to $2 million are offered by business financing provider Biz2Credit. Applying only takes a few minutes, and you’ll hear back in a day or two.
Through Biz2Credit, entrepreneurs can obtain working capital loans ranging from $25,000 to $2 million as well as term loans from $25,000 to $500,000. While term loans are repaid over a period of 12 to 36 months through weekly, bimonthly, or monthly payments, working capital loans are paid back with your business receipts by daily, weekly, or biannual payments.
If Biz2Credit is unable to offer a financial product, it might give qualified potential borrowers access to third-party solutions. But according to Biz2Credit, “it will make a financing decision without referral to any external party in the vast majority of cases.”
Pros & Cons
Two start-up loan options—term loans and working capital loans—ranging from $25,000 to $2 million are offered by business financing provider Biz2Credit. Applying only takes a few minutes, and you’ll hear back in a day or two.
Through Biz2Credit, entrepreneurs can obtain working capital loans ranging from $25,000 to $2 million as well as term loans from $25,000 to $500,000. While term loans are repaid over a period of 12 to 36 months through weekly, bimonthly, or monthly payments, working capital loans are paid back with your business receipts by daily, weekly, or biannual payments.
If Biz2Credit is unable to offer a financial product, it might give qualified potential borrowers access to third-party solutions. But according to Biz2Credit, “it will make a financing decision without referral to any external party in the vast majority of cases.”
Pros & Cons
| Less strict qualifying standards for funding based on income; $250,000 minimum annual revenue requirement Fast online funding, approval, and application procedure | × More stringent qualifying standards for CRE and term loans ×Funding based on revenue requires payments every day, every week, or every two months. ×Certain products aren’t accessible in every state. |
Why apply for a business loan?
- Pay for unforeseen costs: A quick business loan can provide you with the funds you require when your cash flow is slow but you still need to pay your bills and pay your employees.
- Navigate through sluggish times: During seasonal downturns, a quick business loan can also keep things operating smoothly.
- Grow the company’s operations: To expand your company, you might also wish to take out a loan. The money can be used to scale operations, buy real estate, or hire more staff.
- Purchase or replace equipment: Certain business loans are tailored to assist you in financing or improving your equipment, including computers, furnishings, and machinery that aid in the production of your goods.
- Refinance the debt of the firm: If you are eligible for a lower interest rate, you might be able to refinance your current debt with the help of some business loans.
Qualifying for a fast business loan
Typical criteria for company loans consist of:
- Business plan: A detailed plan detailing your approach and expected income may be requested by lenders.
- Strong cash flow: You might have to provide documentation demonstrating your minimum yearly or monthly income.
- Strong credit history: When you apply for a quick business loan, your personal and business credit may be taken into account.
- Duration of business: Lenders could demand that your company has been operating for a minimum period of time, ranging from two years or more.
- Collateral: In the event that you are obtaining a secured loan, you must provide adequate collateral, such as property or machinery.
How to Obtain a Loan for Your Start-up With Poor Credit
Although certain lenders do not accept applications from individuals with poor credit, there are some that do. Think about obtaining a business loan for bad credit if your personal FICO score is less than 580.
In order to make sure you can afford to take on a new loan, lenders usually like to see a business plan and cash flow estimates, so they could require more paperwork than they would if you had excellent credit. Keep in mind that candidates with lower credit scores often pay higher interest rates, making borrowing more expensive overall.
Take into consideration other choices, such as a company credit card, which typically has more lenient qualifying conditions but lower credit limits, if you are not eligible for a traditional start-up loan or a business loan for bad credit.
Also read this: Recession hits the UK as its economy contracts 2024
FAQ’s
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Which loan is best for starting a business?
After operating for a minimum of six months, start-ups have to contemplate applying for SBA microloans, company term loans, and credit lines from internet lenders. Take a look at business credit cards for new enterprises if your company has been open for less than six months. Usually, personal credit scores rather than company credit histories are used by business credit card issuers to determine eligibility.
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What’s needed for fast loan approval?
To be eligible for a quick business loan, entrepreneurs usually need to have been in business for six to 24 months, have a good credit history—both personally and professionally, and have a sizable yearly income. These traits are used by lenders to evaluate your ability to repay the loan.
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Are there fast loans for start-ups?
Even companies that have just been in operation for six months can qualify for quick loans from certain online lenders. If your company is new, you may be able to obtain finance from another source, such a business credit card.
