The Best Same-Day Business Loans of 2022

As a business owner, you may need quick access to funds. These funds can help in an emergency or for daily business activities. Same-day business loans let you receive funds within 24 hours of your application.

The Best Same-Day Business Loans

These loans usually have fewer qualification requirements but higher interest rates. Same-day business loans are best suited for short-term projects and not costly long-term ones. Many different financial institutions provide these kinds of loans. Keep reading for a list of the best same-day business loans.

Different types of same-day business loans

There are different loan types to choose from if you need access to fast business loans. Here is an in-depth view of some of the best same-day business loans.

Short-term loans

With short-term loans, the lender provides you with a lump sum of cash. You then repay the loan regularly for a certain period. Some standard repayment schedules include per month, day, or week. Short-term loans earn their name from how fast the loan needs to be repaid.

Usually, the repayment period ranges from three to eighteen months. If a loan has a longer repayment term, it becomes a long-term loan. When running a startup or a small enterprise, you may be unable to get a credit line from the bank. Thus, you can get a short-term loan instead.

One significant advantage of short-term loans is the ease of access. You can get funds even if your business doesn’t have excellent credit scores. The loan requirements are more accessible to satisfy than those of long-term loans.

Merchant cash advance

A merchant cash advance allows companies to access funds quickly without meeting formal requirements. Through it, you receive a lump sum of cash. A portion of your future sales revenue typically serves as collateral.

A merchant cash advance uses factor rates rather than interest rates. You pay back the loan from the business’s daily credit card sales. Payment is usually made daily rather than monthly.

Your business doesn’t need perfect credit to access a merchant cash advance. The reason is that the loan depends more on cash flow than creditworthiness. The loan is suitable for seasonal businesses and those with unstable revenue. A significant disadvantage of a merchant cash advance is the risk of getting stuck in a debt cycle.

A business line of credit

As a business owner, you must know the importance of working capital in business growth. However, all businesses may experience periods of uncertain cash flow. For example, late invoice payments and unplanned expenditures can create uncertainty in your cash flow. In such periods, having extra funds can make a big difference.

A business line of credit helps small businesses access some extra funds. It is a popular financing choice. A line of credit refers to a fixed amount of money you can borrow whenever necessary. You can then pay back the amount later.

Lines of credit are different from term loans because of their revolving nature. Revolving means you can use the funds and repay what you’ve used to re-avail the money. There’s a specified repayment period for a business line of credit.

Business credit cards

A business credit card is an account that is specifically meant for business rather than personal use. All companies can benefit from getting a business credit card. It will help you develop a credit profile to ease the process of borrowing in the future.

The credit card will also help you separate personal and business expenses. Doing so will help with accounting. Responsibly using a business credit card will be beneficial for future financing. One way to use it responsibly is to ensure you pay your credit card bill on time.

There are a variety of business credit card options to choose from. Take the following factors into consideration to select the best one for you:

Annual fees
Earnings structure
Introductory and ongoing APR
Financing options

Invoice financing

Invoice financing lets you get a business loan secured by part of the outstanding invoices. It is also called accounts receivable financing. Unpaid invoices serve as collateral. So, you don’t need to offer even more collateral to get a loan.

Invoice financing is suitable for businesses with less than stellar credit and startups. Lenders don’t care much about the business’s credit history with the loan. Instead, they’re more interested in your invoice quality.

The lender provides funds amounting to a portion of your unpaid invoices. Then, when the client pays, you get the rest minus company fees. The lender usually charges a certain percentage in fees for every week your clients don’t pay the invoice.

A significant advantage of invoice financing is the quick access to funds. A major disadvantage is a dependence on customer payments. If a customer fails to pay altogether, misses a fee, or is late in paying, you face risks.