The world of small business today in America is anything but certain, thanks entirely to the coronavirus and the devastating impact it’s had on our citizenry and our economy.
As a smart and strategic small business owner, the odds are pretty good you’ve done everything you can to find a way to protect yourself, your loved ones, your business, and your financial future – but no one could have anticipated a global pandemic like this wreaking havoc left and right.
One out of every four businesses are closed temporarily. Almost half of all businesses are nervous that they won’t be able to last any longer than six months out of business before they have to close permanently – and we still don’t have a cohesive or coherent plan about how to open up our nation again safely and strategically.
Thankfully though, there are numerous opportunities to take advantage of financing to secure your business, to get you through these tough times, and to move forward building and growing the business of your dreams (and your financial future along the way).
PPP Funding Part of the Cares Act 2020
The government has been working in a very collaborative and bipartisan nature, passing the CARES Act and the Paycheck Protection Program (PPP). These programs injected billions of dollars into small business owners pockets, and likely will continue to do so for the foreseeable future, and that has certainly helped. This program is typically funded in 2-4 weeks if you have a local bank relationship or can be done through various alternative lenders.
However, the PPP is limited in the use of funds allowed under the program. This program focuses on payroll protection to keep employees off unemployment and keep them employed at your business. There is not a working capital portion to it and many traditional lenders are starting to slow down funding due to uncertainty.
At the same time, though, you may be looking for even more financing to help you through these uncertain times.
Unsecured Business Loans: Still a Fast Option
Many traditional funding is at a halt but fast business loans are still available through some financial technology companies. Many of which focused on unsecured business programs that focused on revenue over credit history and financial statements. These products are typically used for growing the business or funding requests that have a short opportunity window. Some of the programs are more costly however as the old saying goes in business. “If you snooze you lose” and many opportunities move quick.
Here are some tips and tricks to help you get business loans fast, even in our current economic environment.
Target Financing Specifically for Fast Turnarounds
Believe it or not, there are a whole host of business specific loans designed with fast turnaround times in mind – loans that are engineered from the ground up to help you cover short-term situations, cash flow situations, and to cover unexpected issues (like the coronavirus, for example) as well as business expenses and inventory/equipment investments.
These are the kinds of loans you’ll want to shoot for if you’re looking for a quick turnaround, as that’s exactly what they are designed and intended for in the first place.
Leverage Fast Business Loan Opportunities
There are also a number of business loan options and opportunities that generally have quick turnaround times – much faster turnaround times than if you had walked into a bank with your fingers crossed, hoping that they might extend to use some sort of financing.
Unsecured business loans from nontraditional lenders can provide you with all the cash and capital you need to succeed in a very short amount of time – all without having to put up collateral to secure the loan in the first place.
The interest rates on these kinds of loans can be a little higher, but they can certainly help you get access to the funding you need when you need it most.
Business lines of credit are another lending opportunity with historically fast turnaround times, but they have a lot of other benefits, too.
These kinds of loans extended to you a “lump sum” kind of credit pool you can tap into as needed, but you never have to worry about paying the entire principal and interest the way you might have with a more traditional loan.
Instead, you’ll be able to repay only the principal and interest that you borrow from these lines of credit – making them more affordable, more accessible, and more flexible for smart and strategic small business owners.
Streamline Your Application Process
The last tip we want to share with you to help fast-track your business loans is to prepare yourself for the application process as much as humanly possible before you jump right in.
Obviously you’ll want to do anything and everything you can to consistently raise your credit score and improve your credit history. Nontraditional and alternative lenders aren’t as fixated on your credit score as traditional lenders are – but they are still going to have a look.
Your annual revenue and business banking details will always be a big piece of the puzzle during your business loan application process. Having this information on hand and easily accessible will certainly make these applications move much faster.
Details regarding your current debt obligations (if any) will almost always have a big impact on the speed of your approval or denial. You can certainly get more financing while currently holding loans and financing packages, but it may (or may not) influence the decisions of some lenders.
Lastly, profitability and cash flow details that you can provide – especially favorable ones – will always “grease the wheels”, so to speak when it comes time to apply for and get approved for the lending you are after.
It should come as no surprise to anyone that small business lenders are looking to make smart bets with their financing, fully intending to make money on these kinds of loans. If you can prove that your business is already successful and will become even more successful with funding your odds of getting a quick approval skyrocket.