Easy business loans

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Page written by Chris Godfrey. Last reviewed on October 17, 2024. Next review due July 1, 2025.

Faster, simpler, more flexible. Easy business loans are an ideal funding choice for small business owners who want a loan quickly and without all the fuss.

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What qualifies as an easy business loan?

Although there is no official definition of an easy business loan, the term usually applies to business financing that requires low documentation and has more lenient qualifying rules. Compared to banks and credit unions that offer more traditional business loans – funding that typically requires strong credit, excellent finances and several years in business – easy business loans are usually obtained from online lenders and may be secured with lower credit scores, shorter times in business and less financial paperwork.

Key features of easy business loans include:

Flexible qualifications

Easy business loans usually come with more relaxed qualifying rules. This means less focus on credit score, time in business and piles of paperwork and more focus on the overall performance of the organisation. (Although you will usually still need to provide basic documentation such as bank statements and customer invoices). Easy business loans may be secured with personal credit scores as low as 500, well below the minimum 650 rule set by most banks and credit unions – and, depending on the type of easy loan you secure, physical collateral may not be required.

Main benefit: More lenient qualifying means these loans can be a good option for borrowers who have weaker credit, shorter business history and thinner paperwork.

Quick to fund

Compared to loans from banks and credit unions that can take weeks to fund, easy business loans are jet-propelled, sometimes funding your loan in 24 hours from receipt of application.

Main benefit: If you need funds in a hurry, an easy business loan can be the fastest solution. (Find out more about quick and easy business loans here).

Simple applications

Many traditional business loans have long and complicated application processes – often requiring a vast array of documents, statements from your accountant and even a personal interview. In contrast, easy business loans usually ask the borrower to complete a single online application form and upload a few documents such as business bank statements and personal tax returns.

Main benefit: Simple applications can speed up the approval process and reduce the stress on you.

Issued by online lenders

Most easy business loans are provided by online or alternative lenders. Although some traditional business loans may be easier to secure than others. Online lenders typically provide the greatest flexibility in approving business loan applications.

Main benefit: Better chance of approval and a faster, more streamlined application process.

Higher interest rates

Because easy business loans can be obtained with lower credit scores, less paperwork and shorter or more patchy business history, lenders are carrying more risk. To balance this, they will typically charge higher interest rates and fees than you may pay on a traditional loan from a bank or credit union.

Easy business loans can be secured with interest rates that start as low as 6%, but the rate you pay will be determined by your business situation and your risk profile. This means no two easy business loans are alike. Each is tailored to the unique circumstances of the borrower.

Main benefit: You may pay a little more, but you get the funds sooner.

At a glance – traditional business loans compared to easy business loans

Traditional business loans	Easy business loans
Typically require strong credit – with scores of 650 and more	May be secured with scores as low as 500
Provided by banks and credit unions	Provided by online lenders
Minimum 2 years in business	As little as 6 months in business
High documentation requirements	Lower documentation requirements
Complex application process	Simple application process
May take weeks to fund	Can fund in as little as 24 hours
Lower interest rates and fees	Higher interest rates and fees

When should I get an easy business loan?

Few small business owners want to go through a long and tedious loan application process, so an easy business loan can be a useful option any time. However, there are situations where getting an easy loan is the only way to go:

When you cannot qualify for a traditional bank loan: Because they come with more relaxed qualifying rules, easy loans are an excellent choice for business owners who cannot secure a loan from their bank or credit union. Yes, you will typically pay higher interest rates and fees, but you get the funds you need to grow your business in return. Also, if you manage the loan properly, you can build up your credit history, which may give you access to more traditional business loans in the future.
When you need cash fast: Traditional business loans can take weeks or even months to fund, which may be too long for your business. Easy business loans can fund in as little as 24 hours.

How to choose the right easy business loan

Selecting the right easy loan for your business is important. Key steps to consider include:

Understand your financing needs

Why do you need the money? How did you calculate the sum you are asking to borrow? You don’t want to ask for more than you need or more than you can pay back. You also don’t want to create a shortfall by requesting a loan that’s too small. Be aware that you will need to present a case for funding to secure an easy business loan and your application and financial records should support this need – indicating what the loan will do for your business – and how you will pay the loan back.

Do your research

Some easy business loans will work better for your organization than others. Which loans are cheapest? Which are the fastest to secure? Research all the funding types before settling on your final option.

Review your options carefully

It makes sense to shop around for easy business loans before settling on a lender. You can do this by approaching lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of easy loan deals from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for small business owners who have never taken out a commercial loan before.

What are the alternatives to an easy business loan?

Small business owners that do not want an easy business loan may be able to secure the funds they need from other sources:

Traditional business loans

If you can meet the qualification standards, have the necessary paperwork and are prepared to go through a much longer application and funding process, a traditional bank may be right for you. You will pay a lower interest rate and you may be able to secure a larger amount with a standard business term loan from a bank, credit union or many online lenders, but it all comes down to your patience with the process and the urgency of your funding needs.

External investors

If you’re seeking outside investment, there are networks of venture capitalists and angel investors readily available online.

Bringing in external investment can give you the cash you need, and it may also deliver a unique and extra set of skills and contacts that can help your organisation grow even faster. However, investors will usually want a piece of the action in exchange for their money. This will mean you giving up a share of your ownership and may loosen your overall control of the business. Some investors may also want higher dividends or royalty payments as well as their share of equity. Also note that venture capitalists and angel investors can be very picky about the businesses they choose to back. You could spend many months pursuing one lead after another before you find the right match.

Grants

Business grants are another option for small business owners. Unlike business loans, the major advantage of this type of funding is that you don’t need to repay the money. However, the downside is that it can be very tough to secure a grant. They are often restricted to specific locations, industries or causes, making it difficult to qualify.

Crowdfunding

Available via various online platforms, crowdfunding can bring in large sums if your presentation hits the right spot. Although you will need to be creative to raise big money in small donations from hundreds or even thousands of donors, you do not need to repay the cash if you spend it where you said you would. An eye-catching idea and a powerful pitch is essential to succeed with this funding option.

Get started with Swoop

No matter if you’re seeking your first business loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for your loan. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality, easy business loans from a choice of lenders. Give your organisation the financial boost it deserves. Register with Swoop today.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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