Best Fast Business Loans For Quick Cash Of 2023

Just as there are many forms of business financing, there are several types of fast business loans to choose from. These are some of the most common options:

Online Business Term Loans

Term loans are what most people think of in the context of business borrowing. With online business term loans, business owners complete an online application process and can receive an approval decision within minutes. Funding speeds ultimately depend on the borrower’s bank, but cash is often available in as few as two days after approval.

Loan funds are disbursed as a lump sum and interest begins accruing on the entire loan balance. Payments are then made over a set period of time—usually between three and 18 months for short-term loans. Term loans with fast funding are generally available for up to $250,000, with annual percentage rates (APRs) starting around 10%.

Business Lines of Credit

Unlike a business term loan, business lines of credit can be accessed on an as-needed basis and are revolving—meaning a borrower can pay off the line and access the funds repeatedly during the draw period. Interest only accrues on the portion of the credit line being used, making it a good option for business owners who need access to capital over time. Borrowing limits generally range from $2,000 to $250,000 and APRs start at around 7%.

Borrowers who need fast access to cash may benefit most from short-term lines of credit. While this type of financing comes with brief repayment terms—usually less than a year—funding times may be faster than for traditional lines of credit. In fact, borrowers may get access to their line of credit within hours of approval.

Equipment Financing

Business owners who need to purchase equipment like vehicles or machinery may qualify for equipment financing. Equipment financing is a form of asset-based lending, meaning the loan is secured by the equipment being purchased. If the borrower defaults on the loan, the lender can seize—or repossess—the collateral to recoup the outstanding loan balance. Loan amounts depend on the cost of the equipment but may extend above $1 million, with repayment terms up to 25 years. Interest rates generally range from 8% to 30%.

Because equipment financing is used to purchase specific items, this form of loan is not appropriate for all businesses. However, business owners who need equipment to start or grow operations may benefit from this option.

Invoice Factoring and Financing

Invoice factoring and financing vary slightly in their mechanics but generally involve borrowing against the value of a business’ unpaid invoices. With invoice factoring, the business sells outstanding invoices to a factoring company, which becomes responsible for collecting payment.

Invoice financing, on the other hand, involves borrowing money that is secured by the business’ outstanding invoices. In this case, the business must still collect payment and then use those funds to repay the loan. Factoring companies generally buy invoices for 70% to 95% of the total invoice amount and charge factoring fees of 0.5% to 5% per month until the invoice is paid.

Merchant Cash Advances

A merchant cash advance (MCA) lets a business owner borrow cash against future sales receipts. This form of business financing is often available through payment processing and merchant services companies, and lets business owners access cash without applying for a traditional loan.

Business owners receive a lump sum of cash that is then repaid from credit card sales or automatic clearinghouse (ACH) payments on a daily or weekly basis. Factor rates generally range from 1.2 to 1.5, which may be equivalent to APRs from 40% to 350%.