How Quickly Can You Get a Business Loan?

By Backd Business Funding, 01 December, 2022

How Quickly Can You Get a Business Loan?

Using small business loans might help you eliminate a cash flow gap your business is experiencing. However, regardless of how your financial position is impacted by a bad season or high overhead costs, loan alternatives like working capital are quicker and easier than waiting for a regular bank approval. What can you use working capital for? This flexible business financing may be applied to many different company needs like expansion, equipment, or payroll. Taking advantage of a significant growth opportunity or addressing unexpected costs are also possible with these loan alternatives. 

With the holiday season right around the corner, you might need extra capital to boost your holiday sales during the rush. Imagine a toy store needs the newest dollhouse playset that is in high demand for Christmas, but doesn't have the funds to order them. They want to make sure every kid that wants a playhouse gets one! The quick turnaround time of working capital lending will help you get what you need before the holidays arrive. 

You can get funding for the holidays from Backd with a few easy steps:

  1. Fill out our online application.

  2. Wait for a decision after your application is reviewed electronically.

  3. Get Backd and receive your funding within 24 hours.

To better understand securing working capital and small business loans, let’s answer the question: how long does it take for a small business loan to be approved?

How Fast Can You Get a Business Loan?

Larger institutions like banks typically take more time than alternative sources of funding. Depending on the lender, some borrowers can get working capital within 24 hours after applying. Online lenders are typically the providers that have the fastest turnaround time from start to finish. A reliable lender offers a quick application process, same day decision responses, competitive rates, and flexible terms so you can get your capital when you need it the most rather than months down the line. These easy approval business loans make sure your business has the opportunity for funding immediately. 

Is It Hard to Get a Small Business Loan Right Now?

Though each lender has its own guidelines, they all typically take into account the same criteria, such as your personal credit score, the length of time you've been in business, and your annual revenue. Typically that means businesses should have at least one year in business, a minimum annual revenue of $100,000, and ownership of a business bank account. Some lenders require a minimum credit score of 670-700 to provide working capital to businesses. 

Small business loans for startups can be difficult to get if you don’t meet the requirements of the lender. And fast business loans typically aren’t as fast as alternative financing like working capital. So when should you apply for working capital? 

  • You need to pay for immediate expenses.

  • You want to expand your business (staff, equipment, etc.).

  • You need capital to continue operations during a slow season.

  • You need to buy products to stock shelves.

If you meet the minimum requirements for funding and have immediate needs, then working capital financing is the best option for your business to secure cash quickly.

For example, once the toy store applied and was accepted, they got their funding in less than 24 hours. Because of that, they were able to order the dollhouses from the distributor the next day! Now they know they’ll have enough stock for the holidays.

How Do I Get a First Time Small Business Loan?

Securing your first small business loan can be a daunting task, but there are six steps you can take to make sure you select the right lender for your business needs:

  1. Determine your funding requirements. By deciding what you need the financing for—payroll, stock, equipment—you’ll be able to figure out which type of financing is best for you.

  2. Confirm your eligibility. Look at the requirements of each lender and see which financing you qualify for.

  3. Decide what payments you can make. You want to make sure you can repay the capital as required by your loan terms.

  4. Compare lenders. Decide which financing options fit your needs the most and have the best repayment terms.

  5. Collect required documents. You will need proof of your credit score, business revenue, and other business documents that prove your eligibility.

  6. Apply for a loan or working capital alternative. Once you’ve completed all of the steps above, it’s time to apply for funding.

Once you complete these steps, you’ll have to wait for the lender to approve the loan. With many online lenders, it can take as little as 24 hours to receive an approval. However, with larger institutions like banks, it can take up to several months.

How Much Can You Get for a Startup Business Loan?

With Backd, you can receive $10K to $2M in working capital for your business, depending on your qualifications. You can receive a decision on your working capital approval within 24 hours of submission after an application process that takes mere minutes and no hard credit pulls. We put a lot of effort into empowering and assisting small businesses because they are the backbone of the economy. We think that reinvesting our success can help fuel yours. 

If you’d like to apply for working capital for your business, visit our website and see if you qualify.