Quick business loans and how to get one

Quick business loans and how to get one

In the today’s economic environment, many businesses need additional funding to continue to develop or sustain their operations. However, getting a business loan is not that easy, or at least it is not easy for everyone. Getting a business loan from a conventional loan lending institution may take too much time. Traditional loan lending institutions also require a business to meet a set of stringent criteria and fill out loads of paperwork. If you decide to apply for a standard business loan from a traditional loan lending institution such as a bank, you will have to submit many different documents regarding your business and the state of its financial standings. Different loan lending institutions will require a bit different documentation. However, some common requirements include a credit report, business and personal tax returns, as well as a business plan and financial statements.

And even though many conventional loan lenders are starting to relax their requirements a little, there is still a lot scrutiny imposed when a business is reviewed for a business loan. If you do not have a lot of time to waste and you want to fund your business as fast as possible, applying for a standard business loan from a conventional loan lending institution will simply not do the trick for you. Having said that, taking out a business loan from a traditional lender is not your only option, as there are other business funding programs that can get you the cash faster and with a lot less documentation involved. What you need is a quick business loan. One of the most popular types of fast business loans is called a revenue-based loan.

What is a revenue-based loan?

What is a revenue-based loan?
What is a revenue-based loan?

With a revenue-based loan, you may be able to get the funding you need in just a week. With the whole application process and approval time taking no more than 2 days, with 5 to 7 days for the money transfer. Revenue-based funding, or money flow financing, can often be the perfect solution for a business owner who needs to fund his business quickly. Unlike the long and complicated application process that you would need to go through  to qualify for a standard business loan from a traditional bank, with a revenue-based loan, you only need to complete a quick and very simple business loan application process, and meet some basic requirements criteria. You need to know and remember that a revenue-based loan is not the same thing as a merchant cash advance. With a merchant cash advance, your business monthly credit card revenue is important. With a revenue-based loan, the important thing is the bank deposits of your company. What makes revenue-based loans so helpful is that they are based on the revenues that your business generates and that this type of business loan is really quick and efficient. With a quick business loan, you will not have to waste time submitting tax returns, business plans, financials, or whatever other documentation that a traditional loan lending institution will require you to provide in order to be approved. With a revenue-based loan, there is also no need for any collateral in order to get the money that you need.

Repaying a revenue-based business loan

Repaying a revenue-based business loan
Repaying a revenue-based business loan

If you have been approved for a revenue-based loan and you have funded your business, what you need to do is, of course, to repay the loan that you have taken. The repayment process of a revenue-based business loans is a bit different from the repayment process of a standard business loan. Instead of having to make a single big payment at the end of each month, with a revenue-based business loan, you will have to make small payments every day. Let’s say that you have taken out a revenue-based business loan for $20,000 with a repayment period of 6 months. With a 1.24 rate on your revenue-based loan, you will have to make a daily payment with the amount of $194.4 five days a week. That is because repayments for a revenue-based business loan are only made on business days, which means that you would have to pay $194 5 days a week for 6 months in order to fully repay your quick business loan. This repayment method is a lot easier for small business owners compared to paying a big amount of money at the end of each month.

Conclusion

This is, of course, not the only type of a quick business loan that you can choose from. The loan lending industry offers various loan types and you should choose the loan type that best meets your needs. You, as a owner of your small business, are the person who knows best what that business needs and what loan would be best fitted to meet these needs. A revenue-based loan can be a perfect quick business loan solution for your business and if that is indeed the case, do not hesitate to apply for your quick business loan and get the funding that your small business needs.

 

 

 

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