Same-day business loan

Every lender will have their own application criteria, but there are several steps you can take to improve your chances of approval and get faster loan processing:

Evaluate your timeline

Before applying for a same-day business loan, evaluate your timeline to determine that you really need this type of funding. If you can wait, there may be other borrowing options that will be less costly and give you a higher loan amount. If you decide that you still need a super quick loan, make sure your future cash flow can support the high repayments and interest charges it will bring. 

Know your credit score

Because they are assessed quickly, with less time to review other documents such as bank statements, tax returns and balance sheets, same-day business loan approvals rely more heavily on your personal credit score than many other types of business finance. The higher your score is, the better your chances of approval and the lower your interest rate will be. Some lenders may provide fast business loans with scores as low as 500, but most will want a score of 600+.

Unfortunately, it is common for mistakes to occur on credit reports. This can have an adverse impact on your credit score and your loan application. Always check your credit report and score before applying. If there are errors, get them fixed – and be aware that fixing a credit report can take time and there are no ‘fast credit score repairs’ despite the many promises from online ‘credit doctors’ who say they can perform miracles for your score.

Review additional qualifications

As well as your credit score, lenders will usually consider bank statements and your annual revenue when reviewing your application. Your time in business is also important. Some lenders might also want to see your cash flow and sales projections to be sure you can repay the loan. 

To save time, it is worth gathering these documents in advance of applying for finance. You should also determine if you will be able to meet the lender’s application criteria – for example you have only been operating for 6 months and the lender wants at least two years’ trading history. 

Compare lenders

You should always shop around for same-day business loans before settling on a lender. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of 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 business owners who have never taken out a fast business loan before. 

What you need to compare:

• Interest rates and fees – they can vary significantly – check for hidden costs, like admin fees
• Qualification criteria and documentation requirements – check the fine print
• How long to fund – they may say they fund ‘same-day’, but do they really?
• Repayment terms – can your cash flow handle their schedule?
• Collateral requirements – if it is necessary, can you provide it?
• Lender reputation and reviews – always go with a lender who has good standing in the industry, not just the cheapest or the fastest 

Apply for funding

Once you’ve settled on a lender, apply for funding. Make sure you satisfy their unique documentation requirements. Don’t assume all lenders are the same. Additionally, only apply to one lender at a time. Every formal application shows up as a hard search on your credit report. Too many of those will impact your credit score, making it more difficult to get the quick loan you need. 

Choose the best option

Remember, it’s not just about getting a fast business loan, it’s about getting the right same-day loan for your organisation’s structure and operational needs. Make sure the loan fits your business, not the other way round. You’ll want a loan you can afford, that causes you minimal inconvenience and that works the way your business works.