Same-day business loan

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    Chris Godfrey

    Page written by Chris Godfrey. Last reviewed on April 10, 2024. Next review due October 1, 2025.

    It may be to fund an emergency or to grab an unexpected opportunity, but there are often moments in business when you need money faster than your cash flow will allow. Same-day business loans are streamlined to deliver funding within 24 hours of loan approval. Get the cash you need quickly with the minimum of fuss.

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      What is a same-day business loan?

      Same-day business loans can give your organization extra funds when you need them in a hurry. Mostly available from online lenders who have faster application processes, lower documentation requirements and more relaxed qualifying rules, same-day business loans can put the money in your bank account on the same day as approval, or at least within 24 hours.

      The downside of same-day business loans is that speed comes with a cost. Super-quick business loans tend to have higher interest rates and shorter repayment terms than SBA loans or traditional business loans from banks or credit unions.

      What are the different types of same-day business loans?

      Same-day business loans come in a variety of flavors, but you should select a loan that suits your organization’s structure and operational needs rather than the first offer that comes along. If you’re not sure which type of loan is best for you, contact Swoop now to confidentially discuss your funding needs with a fast business loan expert.

      Short-term loans

      One of the simplest ways to borrow money quickly, a short-term business loan provides a cash lump sum that you repay in regular instalments over a fixed contract period. Short-term loans are usually paid back in 12 – 24 months. Collateral may be required.

      Business lines of credit

      A business line of credit – also known as a revolving line of credit – functions like a high-value business credit card. Revolving credit lines allow businesses to withdraw as much as they want – up to their credit limit – from a floating loan account. 

      The key benefit of this type of borrowing is that you only pay interest on the amount you withdraw, not the whole credit line. This can significantly reduce your finance costs whilst giving you reassurance that extra funds are available if and when you need them. Businesses typically pay the line back with regular payments, or by transferring funds from their business bank account to the credit line as their cash flow allows. Collateral may be required.

      Invoice financing

      Also known as account receivables financing, this type of same-day business loan allows you to borrow against the value of your unpaid invoices and is best for B2B organizations. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral is required.

      Business credit cards

      If you have good credit, it may be possible to secure a business credit card with a high limit to quickly fund your organization. Business credit cards are great for building a good credit history if you pay off the balance every month. You may even get free travel and shopping rewards with the points you accrue. Collateral may be required.

      Merchant cash advances

      Available for businesses that accept customer payments by credit and debit card. With a merchant cash advance, you borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.

      When should I get a same-day business loan?

      Same-day loans can be used for almost any type of purpose. Get a fast business loan when you need to:

      • Cover dips in cash flow 
      • Pay for emergency expenses, such as repairs or urgent upgrades
      • Cover payroll, taxes, utilities, supplier bills and more
      • Buy equipment and/or expand your operations
      • Take advantage of an unexpected business opportunity

      What are the pros and cons of same-day business loans?

      Like all financial transactions, same-day business loans have their advantages and disadvantages:

      Pros:

      • Get the money you need in hours instead of weeks
      • Usually come with more relaxed qualification rules and faster application processes
      • Some types of same-day loan require no added collateral

      Cons:

      • Higher interest rates and fees
      • Shorter repayment periods – so higher monthly payments

      How to get a 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 FICO 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 organization’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.

      Can I get a same-day business loan with bad credit?

      Probably. Even if you have bad credit or have been turned down elsewhere it may be possibly to get the fast business loan you need. Loans that collateralize the items they finance, such as invoice financing and merchant cash advances, can often be obtained with scores as low as 500 and with no need for added collateral. Additionally, some online lenders specialize in same-day business loans for borrowers with less than stellar credit. If you want to know more about these kind of deals before you apply, you can confidentially discuss your financial needs with a bad credit expert here

      Get started with Swoop

      No matter if you’re seeking your first same-day business loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for your funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality same-day business loans from a choice of lenders. Give your organization the financial boost it deserves without wasting time. 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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

      To read our editorial policy, please click here.

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