What are instant business loans?

9 Jun 2020

Sometimes, waiting days or even weeks to secure a business loan isn’t a viable option. Every business experiences turbulent times, and having enough capital to keep afloat in the midst of a crisis is critical.

Busy coffee shop

Fortunately, there are plenty of options out there for businesses requiring fast finance. Most come in the form of instant business loans, or rather — “fast” business loans.

Is there such a thing as an instant business loan?

Actually, no. 

In the majority of cases, the “instant” in “instant loans” refers to the practice of lending the funds to the borrower as soon as the loan is approved, as opposed to as soon as the application is received

And since all business loans need to go through a robust approval process, no loan can be dispensed instantaneously. 

For other lenders, “instant” might mean their ability to provide an instant quote based on the initial information the borrower provides. Similarly, the funds won’t be transferred straight away; it will depend on the individual lender’s approval time which can vary. 

It’s all a matter of semantics.

Be wary of unlawful or fraudulent lenders who claim to provide genuine “on the spot” loans. Check any lender’s legitimacy before you apply and to understand the terms and conditions you’re signing up to. Funding Options only matches businesses with legitimate finance providers.

Funding Options has been chosen by the government-owned British Business Bank to help businesses find finance when they’re unsuccessful with the major banks. 

While there’s no such thing as an instant loan, there are things you can do to help you get approved for a loan very quickly. And we really do mean quickly.

As a matter of fact, Funding Options’ record for helping a customer get approved for a business loan is three minutes. We regularly secure companies the right loan within an hour, from first enquiry to money in the bank. 

Here are a few things you can do to speed up the process.

1. Check the lender’s eligibility requirements 

Different lenders have different eligibility requirements that you’ll have to meet in order to qualify. Checking the eligibility before applying speeds up the process and helps prevent unnecessary setbacks further down the line.  

Fortunately, platforms like Funding Options only match you with business loans you’re eligible for, saving you hours of research time. Ready to give it a go?

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2. Keep your accounts up to date

As well as being good practice anyway, keeping your accounts in good order will make for a quicker, more pain-free loan application process. Lenders will need to see a good overview of how your business is performing, including how it’s doing now.

3. Read borrower feedback

Take a look at lender reviews to see if other borrowers have experienced a particularly slow service when applying for a small business loan.

Sitting with laptop

4. Get your bank statements ready

The speed at which you can compile all the documentation needed to complete your application will play a part in how long it’ll take you to receive business finance. 

Have bank statements, recently filed accounts and financials like profit and loss to hand. 

For more information, speak to the Funding Options team on 0333 344 1015.

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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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