As any small business owner or director will tell you, always expect the unexpected. Everything can be ticking along nicely then suddenly, the wheels can come off. A customer can delay in making a payment, an international supply chain issue can arise, a key member of staff can fall ill and require a lengthy break. There are dozens, if not hundreds of factors that can derail an SMEs, even one that is generally successful and profitable.
The good news is that most of these issues can generally be resolved and obstacles can be overcome if you have the funds to take action and make things right. But the bad news is that not all SMEs have the available capital to act in a flexible way. Luckily, there are options out there for businesses who suddenly find themselves in need of immediate funding, in the form of a same day business loan.
Same day business loans are pretty much as the name suggests. They are short-term and fast loan options that businesses can apply for and receive on the same (or sometimes next) business day. They are typically used when cash flow issues arise and generally provided through specialist online lenders rather than traditional banks. Whereas a traditional loan process can be lengthy and require the lender to look in detail at credit scores, balance sheets, income statements, cash flow and more, same day business loan instant approval gives you access to funds for emergencies and other more immediate needs.
Let’s take a closer look at same day business loans online, when they are suitable and how small businesses can take advantage of this kind of funding.
Same day business loans are designed for immediate financial needs. They allow you to access cash quickly, often within 24 hours of application approval, and generally to meet urgent or unexpected cash flow issues. They are not intended for use as a form of longer term lending or as part of a wider business strategy.
There are a number of different types of same day business loans available, including business line of credit, merchant cash advances and equipment loans. You need to identify which is most suitable to your needs. However, in most cases the application process is very fast, requiring minimal documentation. This means lenders are able to make rapid decisions based on the applicant's credit score and financial health, transferring the loan amount on the same day in most cases.
Of course, you need to be aware that same day business loans often come with higher interest rates and fees compared to traditional loans. This makes them more expensive in the long run. That’s why they are better suited to short term, lower amounts and only when circumstances determine this is the best or only option.
There are many same day lenders out there and choosing the right broker is crucial. Different brokers have varying processing times, eligibility criteria and loan products. So, even though time is usually of the essence, it is possible to do some quick research online and find a lender that offers the right product at the most favourable rates and terms of repayment.
To speed up the approval process, prepare any necessary financial documents in advance and ensure all application details are accurate. This will help to increase your chances of approval and reduce the risk of any delays. Typically, the documents required will be the last 6 months business bank statements and the most recent set of year end accounts.
Check your eligibility for a same day business loan or speak to a member of our team for more details about this kind of loan.