Same Day Business Loans: How to Get an Instant Business Loan in 24 Hours

Business Expansion

Jacques Famy Jr
Review By Todd Millman

What are Same Day Business Loans?

According to The Cambridge Dictionary, same-day business loans is the term used to describe a service provided on the same day that it is ordered (i.e., same-day delivery, service, or sales). The borrowing process goal is to get fast business loans, not tomorrow or in a couple of days, but today and within a few hours.

So, let’s face it: You need to find a same day business loan and you need a fast business loan. As a small business owner, you know that the unexpected is bound to happen, and when it does, sometimes you need to borrow money with a quick business loan with same business day funding because you can’t afford to wait. This is defined as a same-day business loan.

What Are My Loan Options for Same-Day Business Lending?

Small business owners typically look to online lenders and apply for same-day business loans at some point or another. You probably want a small business financing tool that you can apply, receive approval for, and access the money all within the same day. However, this is not always an easy feat, as many business loan options can take days or even weeks to acquire.

When you need fast business loans, traditional lenders won't make the cut. You must work with business lenders or online lenders with experience in fast business loan products that can deliver rapid finance results. The alternative online lending industry has expanded drastically in the last 10 years offering more same day funding options than ever before.

This guide will explore what quick small business loans are available from alternative online lenders and compare lenders capabilities when small business owners like you need rapid finance! We will break down the types of loan options out there, how they are structured, the funding requirements, the best uses for your situation, the benefits of same day business loans, and search same day lenders with the best terms and rates to access quick business loans in a few hours.

What Are My Loan Options for Same-Day Business Loans?

As a small business owner, unexpected expenses or cash flow gaps can arise, making it necessary to secure financing quickly. Same-day business loans offer a fast and convenient solution, providing access to the necessary funds on short notice.

Below we explore the various lending products available for small businesses seeking same-day business lending from traditional lenders, alternative lenders, online lenders and other lending companies.

1. Short Term Same-Day Business Loans

A short-term small business loan is a loan that provide a lump sum of money that is repaid within a business term loan of over 6 to 18 months. These loans offer the convenience of a fixed amount and a pre-determined repayment plan, repaid within a business term of over 6 to 18 months.

Compared to long-term loans, these differ in cost as well as providing speedy access to funds, making them a viable option of same-day business loans. Short-term small business loans come with a fixed payment auto deducted from your business bank account monthly, bi-weekly, weekly, or even daily, enhancing its accessibility to borrowers.

With lenient credit requirements and minimal paperwork, securing this loan is often a quicker process than traditional term loans, making it an excellent solution for working capital or purchasing inventory at a discount. While criteria and eligibility may vary, loan seekers can typically expect the following:

Loan Amount: $5,000 to $500,000

Rates: With interest rates starting at still-competitive 4.99%, with necessary accuracy in computation.

Repayment Terms: 3 months to 18 months

Payment Schedule: Weekly

Minimum Annual Revenue Requirement: $150,000 annual revenue minimum

Credit Score: Good to poor credit accepted, reflecting our expertise in providing consultations tailored to varying credit levels.

Personal Guarantee: Sometimes yes, sometimes no, sometimes a secured loan.

Financials: Sometime business tax returns required for large amounts

Business Assets: Not Required

Access funds: Experience the convenience of same-day funding (just a few hours)

Benefits of Short-Term Loans:

  • Personal credit score accepted from excellent to fair
  • Lower monthly or annual revenue requirements than those of traditional business loans
  • The fast and straightforward loan process with same-day or next-business day funding

2. Same Day Business Line of Credit

A same day business line of credit works like a credit card in that it is a revolving business line of credit. It allows you to draw money out up to a predetermined credit limit and then repay at any time. With a same day business line of credit, you only pay principal and interest on your outstanding balance too.

Business line of credit features;

  • Business lines of credit have a cap limit and are usually renewed annually but can be increased or continuously extended depending on the lender.
  • Both banks and alternative lenders can provide business lines of credit.
  • The credit score of the small business borrower needs to be good.
  • Business lines of credit typically are used to purchase inventory, working capital, or other same-day business loan requirements.

Business Line of Credit Limit: $5,000 to $500,000

Interest Rate: Starting at 1% per month simple interest

Business Line of Credit Repayment Terms: 6, 12, 18, 24 & 36 months

Payment Schedule: Weekly, bi-weekly, and monthly

Minimum Credit Score: 620 is minimum credit score. Better the credit, better the terms

Minimum Annual Revenue: $150,000 annual revenue minimum

Personal Guarantee: Required

Application Process: Application and business statements

Process to fund: Up to 24 hours

Benefits of a Business Line of Credit:

  • Lines of credit provides the ability to draw money at any time (revolving line of credit)
  • Allows borrowers to spend the money, repay it, and spend it again
  • Principal and interest rates starting at 5.99%
  • Lower costs and fees than most other funding products

3. Same Business Day Equipment Financing

Equipment financing is a must for many industries. The equipment and machinery needed to operate a business can be a costly and expense for small business owners.

Equipment financing usually;

  • Structured as a lease or a loan.
  • The equipment is used as business loan collateral
  • Decisions are also made based on the business owner’s credit and the health of the business financials. The credit score of the business owner should have good or better to obtain an equipment loan, but bad credit equipment financing does exist.

Loan Amount: Loans starting at $10,000 up to $250,000

Interest Rates: Starting at 8.99%

Repayment Terms: 2 to 5 years

Payment Schedule: Customers pay with monthly payments

Minimum Personal Credit Score: No minimum credit score, but better the credit, better the terms

Minimum Annual Revenue: $150,000 annual revenue minimum

Personal Guarantee: Required

Loan Application Process: Online application, invoice, business bank statements, financial statements

Process to fund: Same-day funding

Benefits of Equipment financing:

  • Simple 1-page application
  • Limited financial documentation needed
  • Repayment terms from 2 to 5 years
  • Monthly installment payments
  • Low annual revenue requirements for businesses
  • Same-day funding

4. Same Day Merchant Cash Advance (MCAs) - Sometimes referred to as Daily Payment Loans

Merchant cash advances (also known as future receivables purchase and sale agreements) provide an upfront lump sum of money to businesses in exchange for a fixed percentage of the businesses’ future sales. Repayment is typically made daily or weekly.

With an MCA, an ACH payment is auto-deducted from a business’s bank account, or the percentage is taken out of future credit card sales until the payback obligation is met. Cash advance terms are expressed as a purchase of future sales, so you are given a fixed amount and then responsible for paying back a greater amount through a fixed percentage of future sales. The difference between the amount given and the amount paid back to complete the agreement is your flat cost of money for the cash advance. Borrowing costs are higher than traditional products.

The estimated time to repay is typically 6 to 18 months, but there are no term limits as the cash advance repayment is based on future sales. This type of financing is not a term loan but a cash advance. This product is not offered by traditional lenders or credit unions but offer by alternative business lenders.

Advance Amount: $5,000 to $500,000

Factor Rates: 1.12% to 1.45%

Repayment Timeframes: Three months to 18 months but no time limit required. Flexible repayment options based on bank deposits.

Repayments Terms: Daily or weekly payments available

Credit Score: Low minimum credit score, poor credit scores, but better the credit, better the terms

Minimum Annual Revenue: $150,000 annual revenue minimum

Personal Guarantee: None, Business Performance Guarantee

Application Process: Application, business checking account bank statements, credit card processing statements (if applicable)

Approval Process: Same day funding to 24 hours

Benefits of Merchant Cash Advances:

  • Flexibility-Flexible repayment terms attached to future sales
  • All Credit Considered- Provides funds to business owners with excellent to sub-prime credit
  • Payments fluctuate to future sales controlling the margin of profit

Common Concerns or Misconceptions MCA's

  • MCA's are the same as a traditional loan - MCA's are not loans, but a purchase of future sales receivables agreement.
  • Credit doesn't matter - Although you have to have good credit get approved, most business funders want to see above 500 FICO and in some cases above 550 FICO. Better the credit the better the terms
  • Collateral Required - Personal collateral is NOT required, but you due pledge the business assets for business funding
  • Payments are fixed - Not true. Payments should fluctuate to the monthly or daily deposits of the business by a fixed percentage of future sales specified in your MCA agreement.
  • Predatory lending - MCA's are a legal option for business funding. Although an MCA can be abused by businesses acquiring multiple advances, individually they can be the best and only solution for a business seeking working capital.
  • Prepayment Penalties - One can not credibly say there are pre-payment penalty fees for MCA's, but the drawback is there is not an advantage to paying off early an MCA, unless an early pay discount is added to he agreement.

5. Power at Your Fingertips: Business Credit Cards

When thinking of same day business loans, business owners often overlook business credit cards.

Basic Features:

  • Business credit cards work similarly to personal credit cards.
  • They are a revolving line of credit with a limit with a minimum monthly payment requirement typically lower than a loan.
  • You are issued a plastic card with an account number that can be used online and in person for any purchases or other funding types.
  • You only pay interest based on the current principal.
  • Great for cash flow needs.

Credit Limits: $500 up to $125,000

Interest Rates: Introductory interest rate at 0% up to 29%

Repayment Schedule: Revolving line of credit

Payment Schedule: Monthly

Credit: Low minimum credit score required, poor credit accepted

Personal Guarantee: Yes

Application Process: Online application, sometimes income proof

Approval Process: Instant funding in as little as 2 to 3 hours, same business day available

Benefits of Credit Cards:

  • It can be used 24 hours a day, seven days a week
  • No limitations on the use of funds
  • Flexible monthly minimum payments
  • Principal and interest rates with APR's

6. The Instant Solution: Invoice Factoring

Invoice financing, also known as “invoice factoring” allows business owners to finance purchase orders or outstanding invoices. An Invoice factoring company will advance a set amount of the unpaid invoice to the business owner and collect directly from the client or customer on the invoice the unpaid portion for an additional fee, accelerating the timeline of receiving money for that invoice by advancing the terms of the invoice. Invoice financing is not a loan but an invoice advance.

Paperwork: Online application, invoices, accounts receivable

Approval Process: Invoices approved in hours, not days

Benefits of Invoice Factoring:

  • Rapid finance option-Unpaid invoices advanced on demand
  • No limitations on the use of funds
  • No Personal Credit or business credit scores Required for application
  • Fees are only 1% to 5% of the invoice, no interest rate

7. SBA Loans

Small Business Administration (SBA) loans would not be a good choice as the turnaround times are much longer than a day and would not be considered a fast business loan. Eligibility requirements prohibit fast funding.

How To Get A Same Day Business Loan

Small business owners typically look to online lenders and apply for same-day business loans at some point or another. You probably want a small business financing tool that you can apply, receive approval for, and access the money all within the same day. However, this is not always an easy feat, as many business loan options can take days or even weeks to acquire.

When you need fast business loans, traditional lenders won't make the cut. You must work with business lenders or online lenders with experience in fast business loan products that can deliver rapid finance results. The alternative online lending industry has expanded drastically in the last 10 years offering more same day funding options than ever before.

This guide will explore what quick small business loans are available from alternative online lenders and compare lenders capabilities when small business owners like you need rapid finance! We will break down the types of loan options out there, how they are structured, the funding requirements, the best uses for your situation, the benefits of same day business loans, and search same day lenders with the best terms and rates to access quick business loans in a few hours.

Navigating Instant Approval Small Business Loans: A Same Day Guide

Small business owners typically look to an online lenders website and apply for same-day business loans at some point or another. You probably want a small business financing tool that you can apply, receive approval for, and access the money all within the same day. However, this is not always an easy feat, as many business loan options can take days or even weeks to acquire.

Things to keep in mind:

  • When you need fast business loans, traditional lenders won't make the cut.
  • You must work with a business lending partner or online lender with experience in fast business loan products that can deliver rapid finance results.
  • The alternative online lending industry has expanded drastically in the last 10 years offering more same day funding options than ever before.

This guide will explore what quick small business loans are available from alternative online lenders and compare lenders capabilities when small business owners like you need rapid finance! We will break down:

  • The types of loan options out there
  • How they are structured
  • The funding requirements
  • The best uses for your situation
  • The benefits of same day business loans
  • Search same day lenders with the best terms and rates to access quick business loans in a few hours.

Tips to Prepare for a Speedy Same Day Business Loan Application

Applying for a same-day business loan can be time-sensitive, and preparation is key to ensuring a successful application. Small business owners who are prepared and organized can significantly increase their chances of securing same-day financing.

Here are some valuable tips and insights to help you prepare for a speedy same-day business loan application, including gathering the necessary documentation, understanding your credit score, and researching potential lenders. By following these tips, you can streamline the loan application process and get the funding you need to grow your business quickly.

1. Check Your Credit Report and Credit Score

First, understand your personal credit report and credit scores so you can communicate better with your business funding originator. Make sure to check for accuracy of the report before you apply.

2. Check Your Financials/Business Bank Account

Look at your financials, business bank statements, tax returns, recent profit and loss statements, and cash flow statements to gauge your business’s financial health. Know your numbers. Whether annual revenue or the most recent monthly sales deposits in your business account, financial management is a must.

3. Consider the Use of Same-Day Business Loans 

Clearly identify the need and the “how much” before speaking with a funding advisor.

4. Compare Business Funding Qualification Requirements

Determine the loans that you are most likely to gain approval for. Make sure your business funding advisor has access to all available products to meet your specific borrowing needs.

5. Online Application Information for Business Loans 

Have all necessary information at your disposal to complete any online loan applications, such as personal credit score, business FEIN (Federal Employment Identification Number), and business start date and time in business.

The 5 Most Common Reasons Why Businesses Need Same Day Business Loans

Small businesses may require financing for various reasons, including unexpected expenses, seasonal fluctuations, or growth opportunities. Sometimes, same-day business loans may be necessary to address urgent financial needs and maintain business operations.

Here are the five most common reasons businesses need same-day business loans: cash flow gaps, emergency expenses, inventory needs, equipment purchases, and working capital obligations. By understanding these common reasons, small business owners can make informed decisions about when and how to utilize same-day financing options.

1. Manage Cash Flow Needs

There are a lot of moving parts when operating a business. Various issues can impact your cash flow, like accounts receivable (billing and collections), payroll, and other business expenses. These manage cash flow issues can create cash flow stress that must be handled, sometimes with loans or cash advances.

Not making payroll or business expenses is not an option, so it’s essential to have a credit facility in place to control the ups and downs of the company and stabilize funds with working capital through a variety of loan funding options.

2. Emergencies

Emergencies are defined as “a serious, unexpected, and often dangerous situation requiring immediate action” or “arising from or needed or used in an emergency.”

That covers a lot of things, right? Anything from equipment breakdowns, facility improvements, financial theft, collection issues, sudden loss in sales or receivables due to an economic event, a loss of a strategic partnership that affects revenues, and other immediate needs are all covered. These emergencies are excellent reasons to fund.

3. Software and Technology Upgrades

Technology and software are essential to many small businesses if they are to operating smoothly. Everything from customer relations management systems, collections, payroll, medical data collection, equipment integration, and financial software programs will play a vital role in the overall operation. New innovations are always omnipresent, and it’s crucial to have the credit facility available to acquire the necessary technology to keep up with best practices and efficiencies.

4. Equipment Repairs & Purchases

Equipment can play a vital role in many types of small businesses, and when equipment goes down, it needs to be addressed or replaced quickly.

5. Business Opportunity

Small businesses come across opportunities sometimes that they have to act fast. Whether it’s a great deal to purchase inventory for the small business on closeout or a used piece of equipment that you can acquire dirt cheap if you act fast, same-day business funding may be a must.

Pros and Cons of Same Day Business Loans

Small Businesses that need rapid funding in a pinch because of an emergency, or those who have failed to secure financing from traditional banks, should consider online lenders for same-day business loan needs. Although applicants can qualify for multiple types of financing, they typically have shorter terms, higher rates, and offer smaller funding amounts than traditional loans.

Pros of Same Day Business Loans

  • Rapid finance option
  • A great emergency loan for working capital
  • Reduced minimum qualifications (fewer hoops to jump through) than those required by traditional business financing

Cons of Same Day Business Loans

  • Have higher rates and costs than traditional loans
  • Have short repayment terms
  • Offer small loan amounts
  • Sometimes secured loans
  • Rushing to get financing, without taking time to consider pros and cons can lead to default.

Frequently Asked Questions

Should You Consider Small Business Administration (SBA) Loan for a Quick Business Loan?

SBA loans and banks loans are not considered fast funding and are not a same-day option.

Can you get California Finance Lender Loans same day?

Same day funding is available on a business loan under a California Finance Lender

What business loans can you get same day?

If you are looking for same-day financing your business, you can turn to alternative business funding products such as short -term business loans, alternative business lines of credit, merchant cash advances,s and credit cards. From application to approval to funding, these options can get your business money fast.

How much interest is charged on same-day business loans?

Same-day business loans cost more than traditional financing as underwriting does not consider as many factors in making credit decisions. Non-traditional business financing, such as short -term business loans, lines of credit and cash advance charge factor rates range from 1.13% to 1.48% of the funded amount.

How to apply for same-day business loans?

The best place to find and apply for fast business funding is through online business lenders and business loan brokers. They have the products and services to turn around your application and get you approved and funded same day. Banks and Credit unions do not offer same-day business loans.

Which same-day online loans are the safest?

When looking for a lender you can trust, you want to check out the business online first. Find out how long they have been in business, and check the volume of reviews from Google and the feedback. Look at their rating with the better business bureau. We have found AMEX Kabbage Merchant Funding, Fundbox, PayPal Business Loans, and Ondeck to be experienced and trustworthy.

How to Find Same Day Business Loans

AdvancePoint Capital can assist many business owners as they find a new business opportunity in the form of different loan types. Our team of experts can answer any questions and search quickly and painlessly for your funding without wasting time or, more importantly, money.

Working with AdvancePoint Capital’s alternative lenders and extensive product line offers your small business as many choices and competitive interest rates as possible. As we always say at AdvancePoint Capital, compare, shop, and you will always save! Get your quote today for fast business funding now!

Jacques Famy Jr

Small Business Loan Calculators

Calculate your financing costs using our nifty calculators now.