Quick Business Loans | Can you get same day business finance?

Quick Business Loans

Quick business loans can be an important source of capital for any small business, providing the financial resources needed to invest in growth and development.

There are a wide range of business loans, lenders and brokers available on today’s market, with some quicker to arrange than others. But can you actually get same day business funding like you can with personal finance?

Some providers can give you decisions in as little as 24 hours of your loan application, and funds being released in as little 24 hours after approval. Other can take longer and each lender will have different underwriting processes and checks they need to do prior to providing a lending decision and releasing funds.

Technically it is possible to get same day decisions, but it is rare for the money to hit your account on the same day that you applied.

Because of the different procedures and additional checks needed when you apply for business loans in comparison to personal finance, it usually takes longer for business loans to be approved and paid out.

Same day approvals and payouts depends on:

Incomplete applications, incorrect or out of date documents resulting in the lender asking for further information can all delay approvals and payouts.

If you need to secure business finance fast, there are few things you can do to make sure your application is quick and as smooth as possible.

Select the right loan product

The type of loan you apply for will have a direct impact on how long it takes for you to get your money. Generally speaking, unsecured business loans are quicker to arrange than secured loans. As with unsecured lending you are not using any assets, such as land or property, as security for the loan.

This means there is less paperwork, such as proof of ownership or valuations as with secured lending or asset finance, that needs to completed. Decisions are made based on your credit worthiness and financial stability amongst other things.

So, if you’re looking for quick finance then unsecured lending is usually the best route to take. Short-term business loans are also a great option if you need cash quickly. This type of loan often requires minimal paperwork, and some lenders have quick decision times.

Have your documents ready

Before submitting a loan application, you should make sure you have all the necessary documents that lenders require before applying. Having all correct information will reduce the likelihood of delays and queries from the lender for more supporting information.

This usually includes;

  • Company financial statements – Full year end accounts (to include details trading P&L)
  • Company Bank statements (latest 3-6 months), although in some cases lenders can request opening banking
  • Director(s) Information - ID, Personal Net Worth, Proof of Address
  • VAT/tax bill information (if applicable)
  • Debt Schedule (if applicable)

Although these are common documents needed to make a loan application, they may vary depending on which lender you use.

It is worth checking directly with your broker or lender what you need to provide before making an application.

Find the right lender

There are a wide range of lenders available such as traditional banks or alternative lenders and finding the right loan provider is essential in getting a fast business loan.

Finding the best one can take time and it can hard to choose for the right one for your business type, borrowing needs and credit status.

Different lenders will favour different loan types; for example VAT finance or asset finance, business types; for example start-ups, or established businesses, credit types; for example poor or good credit scores. They will also have different application processing and pay out schedules, with some offering same day business finance and others taking longer.

Having a clear understanding of a lenders preferred application type will help you choose which one is more likely to approve your loan request.

A quick way to scope out a possible lender is to look at their eligibility criteria, as many will publish this online.

Many businesses that are looking for quick business finance will opt to use a finance broker, as brokers do all the leg work for you, know which lenders to apply with and have the knowledge and experience to make sure you have all the correct information to hand.

Keep on top of correspondence

Applying for a quick business loan can be a fast process, as long as you provide all the requested documents on time. You are likely to have to sign any necessary privacy statements and consent forms, as well as answer any questions posed by the lender in relation to your application.

Any delays in responding to document requests will result in longer processing times for your loan, so keeping on top of any correspondence with your lender or broker is extremely important.

If you need any help with sourcing same day business funding, we have extensive experience in securing finance to a wide range of businesses. Contact us if you need any additional information on how to apply for fast business funding.

Whilst RLA Capital cannot offer financial advice, we can provide various business loans to assist with cash flow. RLA Capital would recommend speaking with your accountant if you are experiencing cash flow problems.

Updated: Feb 17, 2023