Fast Working Capital Loans for small Businesses
At some point, every small business owner will find themselves in need of working capital to grow their business. In the United States, there are many options for small business owners looking to secure financing, but not all of them are created equal. In this guide, we’ll explore the best options for fast working capital loans for small businesses in the USA, and how you can use them to help grow your business.
Table of Contents
What is Working Capital?
Working capital refers to the amount of money a company has available to pay its bills and operate on a day-to-day basis. It’s kind of like the money you might have in your wallet to buy food, pay for transportation, and cover other expenses.
For a business, working capital is calculated by subtracting its current liabilities (like bills it needs to pay soon) from its current assets (like money it has in the bank, inventory, and accounts receivable).
If a company has more current assets than liabilities, it has positive working capital, which is a good thing because it means it has enough money to cover its short-term obligations. On the other hand, if a company has more current liabilities than assets, it has negative working capital, which can be a sign that it might struggle to pay its bills.
Why Do Small Businesses Need Fast Working Capital loans?
Small businesses need fast working capital for the following reasons:
- Operational Expenses: Working capital is necessary for small businesses to cover their day-to-day expenses such as rent, utilities, payroll, inventory, and other expenses.
- Growth: Small businesses need working capital to invest in growth opportunities, such as expanding their operations, launching new products or services, or acquiring other businesses.
- Seasonal Fluctuations: Many small businesses experience seasonal fluctuations in demand, which can cause cash flow problems. Working capital can help businesses survive slower periods and prepare for busier seasons.
- Unforeseen Expenses: Small businesses may encounter unexpected expenses, such as equipment breakdowns or legal fees, that require immediate payment. Having access to working capital can help businesses address these unexpected expenses without disrupting their operations.
Best option for Fast Working Capital Loans for small Businesses
When it comes to securing fast working capital loans for small businesses in the USA, online lenders are the best option. Online lenders offer a variety of advantages over traditional bank loans, SBA loans, invoice financing, and merchant cash advances.
First, online lenders typically have less stringent requirements than traditional banks and can provide funding in as little as one business day. This means that small business owners can access the working capital they need quickly and without the extensive documentation and lengthy application process required by traditional bank loans and SBA loans.
Second, online lenders offer more flexibility in terms of loan amounts and repayment terms than other types of lenders. This allows small business owners to customize their loans to fit their specific needs and budget, making it easier to manage cash flow and avoid missed opportunities.
Third, online lenders often have lower fees and interest rates than merchant cash advances and invoice financing, making them a more affordable option for small businesses in need of working capital.
Of course, it’s important to do your research and compare multiple lenders before making a decision. Not all online lenders are created equal, and it’s important to find a reputable lender with a track record of success and positive customer reviews.
When considering an online lender, be sure to pay attention to the interest rates, fees, and repayment terms. You’ll also want to consider the lender’s customer service and support, as well as any additional features or benefits they may offer.
Top lenders offering fast working capital loans for small businesses
Top 6 lenders offering working capital loans for small businesses
| Lender | Best for | Maximum Loan | Terms | Minimum Time in Business |
|---|---|---|---|---|
| Fundbox.com | Overall | $150,000 | 12 to 14 Weeks | 6 months |
| Florafinancial | Startups | $140,0000 | Upto 15 months | 6 months |
| QuickBooksCapital | small Businesses | $150,000 | 6 to 18 months | 12 months |
| Credibly | High-revenue businesses | $400,000 | 3 to 15 months | 24 months |
| Bluevine | Line of credit | 250000 | 6 to 12 months | 24 months |
| Uplyft Capital | Merchant cash advances | 500000 | 2 to 12 months | 6 months |
Our Top pick
Pros
Cons
- Quick financing
- Low Credit Score accepted
- Minimal documentation
- Startup-friendly
- No fees
- Personal guarantee
- Short term payments
Why we chose Fundbox?
Quick access to financing
Small businesses often face cash flow challenges due to the irregular timing of revenue and expenses. When unexpected expenses or opportunities arise, they may not have the cash on hand to cover them. In such cases, getting financing within one business day can help them address their urgent financial needs and avoid disruptions to their business operations.
Low credit score requirement
Small businesses with fair or poor credit may face challenges in obtaining financing from traditional lenders, such as banks or credit unions. This is because these lenders typically have strict credit requirements that small businesses may not be able to meet.
However, with a low credit score requirement, Fundbox offers an opportunity for small businesses with fair or poor credit to qualify for financing. This can be a significant benefit for these businesses, as it can help them address their financial needs and pursue growth opportunities that may have been out of reach otherwise.
Startup-friendly
Fundbox’s startup-friendly policy of accepting borrowers with a minimum of six months in business can be a significant benefit for new and emerging small businesses.
Traditional lenders, such as banks, often require businesses to have a more extended business history before they will consider them for financing. This can be a challenge for startup businesses that may not have a lengthy track record of revenue or financial stability.
By accepting borrowers with a minimum of six months in business, Fundbox provides an opportunity for startup businesses to access the financing they need to launch and grow their operations. This can include funding for working capital, equipment purchases, marketing campaigns, and more.
Simple application process
Small business owners are often busy with various tasks and responsibilities, and they may not have the time or resources to navigate a complicated loan application process. Fundbox’s simple application process and minimal documentation requirements can be a significant benefit for these entrepreneurs, saving them time and effort.
The streamlined application process allows small business owners to quickly apply for financing without having to spend hours filling out paperwork or gathering extensive documentation. The online application is straightforward and user-friendly, and applicants can often receive a decision within minutes.
Fast decision and funding
Most important of all Fundbox’s fast decision and funding process can be a significant benefit for small businesses that need to access financing quickly and efficiently. By offering fast decisions and funding as fast as the next business day, Fundbox enables small businesses to access the funds they need when they need them.
The fast decision process is made possible by Fundbox’s use of advanced technology and algorithms to evaluate the financial health and creditworthiness of businesses. This allows Fundbox to make decisions quickly and efficiently, often within minutes of receiving an application.
Other Fast Working Capital Loans options
Traditional Bank Loans
Traditional bank loans are a popular option for small businesses in need of working capital. These loans typically have lower interest rates and longer repayment terms than other types of loans, making them an attractive option for many small business owners.
However, traditional bank loans can be difficult to obtain, especially for new businesses or those with less-than-perfect credit. The application process can be lengthy and require extensive documentation, and approval is not guaranteed.
SBA loans
The Small Business Administration (SBA) offers a variety of loan programs designed to help small businesses secure financing. SBA loans are partially guaranteed by the government, which makes them a less risky option for lenders and can result in lower interest rates and more favorable repayment terms for borrowers.
SBA loans can be used for a variety of purposes, including working capital, equipment purchases, and real estate investments. However, the application process can be lengthy, and approval is not guaranteed.
Invoice Financing
Invoice financing allows small businesses to borrow money against outstanding invoices. This can be a useful option for businesses with a lot of outstanding invoices but limited cash flow.
With invoice financing, a lender will advance a percentage of the invoice amount (usually around 80-85%) and then collect payment from the customer. Once the customer pays the invoice, the lender will release the remaining balance, minus their fees.
Merchant Cash Advances
Merchant cash advances are another option for small businesses in need of working capital. With a merchant cash advance, a lender will advance a lump sum of money in exchange for a percentage of the business’s daily credit card sales.
While merchant cash advances can provide fast funding, they often come with high fees and interest rates. It’s important to carefully consider the terms and fees before deciding if a merchant cash advance is right for your business.
Equipment Financing
If your business needs new equipment to operate, equipment financing can be a useful option for securing working capital. With equipment financing, a lender will provide a loan to purchase the equipment, which is then used as collateral for the loan.
Equipment financing can be easier to obtain than other types of loans, as the equipment itself serves
Final Thoughts
Overall, online lender funbox offer a fast, flexible, and affordable option for small businesses who have just started their businesses and are in need of working capital. With the right lender and loan terms, small business owners can access the funding they need to grow and thrive in today’s competitive marketplace.
Analytical accountant and curious blogger with over 5 years of experience as an Audit Associate and accountant. With expertise in auditing, accounting, and finance I help organizations drive top-notch financial management practices to achieve organizational success.
