What are fast business loans?

17 Jul 2020

In the world of business, things can move at lightning speed and there are times when you might need a bit of extra cash to keep things moving in the right direction. Perhaps you’ve been hit with an unforeseen expense to pay for or maybe you just want to grow your business.

Man facing women at table

If you need capital quickly and don’t have time to go through the traditional business loan approval process, you could consider applying for fast finance. Traditional loans may take up to a month to go through, whereas fast loans are designed for speed.

Fast business loans are designed for companies that require a speedy cash injection. Instant small business loans can be used for a range of things, including acquiring new inventory, fixing or maintaining property or to invest in business growth. 

Funding Options’ record is 1 ½ hours from first enquiry to money in the customer’s account. Bear in mind that no business loan is instantaneous, as our article on instant business loans explains. 

Short-term quick business loans tend to be for a comparatively small amount to be repaid within a year. Loan terms of over two years tend to be considered as medium or long-term loans. Interest rates vary and are dependent on your business profile and the lender will take various risk factors into consideration..

Broadly speaking, the higher the risk, the higher the interest rates on your finance. 

How quickly can I receive a fast loan?

The time it takes from application to money in the bank varies from lender to lender and also depends on how prepared you are. Many lenders will require you to share documents including filed accounts and business forecasts, so it helps to have this information to hand. 

You could be asked about:

  • Turnover and profit

  • Bank statements

  • Filed accounts

  • Loan amount vs. turnover

  • Trading history

  • Payment history (e.g. CCJs, late payments)

 There are four general steps involved in applying for a business loan.

1. Submit an application

After finding a suitable lender - which you can do for free through the Funding Options platform - you’ll fill out an application for fast finance. 

2. Receive a decision in principle

After your application is submitted you’ll receive a decision in principle which involves soft credit checks and typically takes a couple of minutes.

3. The underwriting phase

This is a more detailed process which can involve full credit checks and the lender reviewing bank statements, etc. 

4. Formal approval

All being well, your application for a fast business loan is approved by the lender and you’ll receive the funds. 

Person working at desk

Which fast loans am I eligible for?

Eligibility will depend on your individual circumstances. There's a vast range of lenders offering different types of loans to businesses, and this means there are lots of different eligibility  criteria, application processes and interest rates to go through.

If you want to work out what you could be eligible for quickly, without having to research every lender separately, you can use our handy business loan tool which uses an algorithm to work it out.

It’s specially designed to provide you with access to the most competitive quick business loans, which are selected based on how well they match your unique requirements. Just tell us how much funding you need and how quickly you need it.

We’re specialists in helping firms find the lender that’s right for them from the whole market — so get in touch with us or apply online if you’d like help finding the best business loan for you.

Get started

Joe Morley
Joe Morley

Head of Unsecured Lending

Joe has worked in the alternative lending space since 2015. During this time he has helped hundreds of SMEs access millions in essential funding ranging from long-term asset-backed lending to short-term unsecured revolving credit lines and beyond. In his role, Joe manages and supports a large team of Credit Finance specialists.

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