Applying for most types of same day loans should be simple and quick, but that’s often far from the case. Most online lenders will require applicants plenty of documents just to be eligible for a small business loan. With small business loans, you’re typically borrowing more money than you would get with a normal bank loan. Also, you’re not going to collateralize the loan like you would if you had a car or mortgage loan. The benefit of this is that you can borrow a large amount of money and expect a competitive interest rate. Most interest rates on small business loans are going to be fixed and set by the going rate. You can usually find these numbers for small business loans online or by calling your local lender. Another way to find this information is to access our directory of unsecured lenders. Not only do we list many of the largest companies, we also break down loan terms and payment options where applicable. There are bound to be large amounts of personal information and credit information that banks typically request for an online loan as well. With most types of company financing, borrowers will need good to great credit and they really can’t expect the underwriting to be completed in less than 24 hours. Applications for same day small business loans will typically take a few days to a week to be approved. You’re probably going to be contacted by an underwriter that will want to verify your income as well as your business history. For example, how long have you been operating as a company and do you have an online operation or is it a brick and mortar company. For more information on the application process you can always talk to the lender to and find out how long it will take but we bet it won’t be anywhere near a same day process. If you submit your online application and complete the company verification process you may expect a decision in just a few days but even that is asking a bit much. Funds from a small business loan can be deposited into a checking account but you can also have them directly wired to an account of your choice. If you want a bank wire you’re going to end up paying more but that can change as well. To recap, we can’t expect a lender to approve and issue same day small business loans. It takes just way too long to complete the application process and once your company and identity are verified you’re looking at an additional few days. You may want to consider a broker that handles small business loans. This is far from ideal because you’ll see that it will cost you money and you may end up with more trouble than you expected, but it could be a good option of you can’t get a small business loan on your own.
One option available to you is to apply online for a small business loan with a bank or large lender. These types of companies can usually expedite your application process and you will have the piece of mind of knowing that you’re applying for a loan with a company that’s not going anywhere. You can get the cash from a bank within just a few days versus a few days to a week with an online small business loan lender. Also if you go this route you won’t have the hassle of lengthy online applications. Most banks will require you meet with them and be interviewed and have your risk assessed in person. When you do this you are skipping the process of getting a loan online but you’re also going to speed up the funding time. With immediate approval, you should expect a bank wire to your small business account in a few days at most if you go with an established lender that processed small business loans.
Disadvantages of Same Day Financing
- A smaller loan. You shouldn’t expect to get as much money from a same day unsecured versus the traditional method. Reason being, the lender is not checking all aspects of your application in order to process your loan quicker. Therefore they’re taking on more risk than a normal small business loan. Another aspect of this type of financing is the fact that there is no collateral being put up beforehand.
- Quicker Repayment Due dates. Same as above. Since you’re not borrowing as much money, you can expect to have less time to pay back the loan. This is standard in situations where there is less underwriting being done.
- Higher likelihood of getting denied. Since your small business lender is processing your loan quicker, you can expect they won’t grant you exceptions if you don’t qualify for certain aspects of the loan. This means you have less of a chance of being approved for an online small business loan.