March 2nd 2023.
What are Easy Business Loans?
While there is no standard definition of easy business loans, the general characteristics include applications that are streamlined, less restrictive qualifications, and fast funding times. Traditional financial institutions like banks and credit unions often have strict approval criteria such as a high minimum credit score, and the application process can be complex, taking weeks to get approval and additional time to receive the funds. By contrast, online lenders are non-bank institutions that can circumvent these traditional loan complications. Many online lending platforms use financial technology solutions to simplify the application and underwriting processes. The best online lenders and lending marketplaces offer applications that can be completed in 5-10 minutes with minimal documentation, and many lenders will let you know if you are approved within 24 hours, with several offering same-day approvals. Once accepted, an online lender can quickly transfer loan funds to your business bank account using fintech solutions, usually within 24-72 hours after loan approval, with some even offering same-day funding. The tradeoff for the speed and convenience of easy business loans is that they tend to be more costly than traditional financing, with costs varying depending on the specific product. Nevertheless, you could justify those costs if you need fast funding and can't qualify for a traditional business loan.
(Image Source: https://www.unitedcapitalsource.com)
What are the best Easy Business Loan options?
One of the advantages of online lending platforms is that there are many easy loan options, and choosing the best loan option depends on your needs and the repayment structures best suited for your cash flow. Some of the best easy business loans to consider include business term loans, business lines of credit, equipment financing, merchant cash advances, accounts receivable factoring, and revenue-based financing.
(Image Source: https://www.unitedcapitalsource.com)
How do I qualify for Easy Small Business Loans?
Qualification requirements for easy business loans vary depending on the lender and loan type. To qualify for easy business loans through United Capital Source, you typically need a minimum credit score of 550+, annual revenue of $75k+, and at least 6+ months of time in business. For equipment financing, the minimum credit score is typically 600+, annual revenue of $250k+, and at least 1+ years of time in business. For a merchant cash advance, you usually need a credit score of 550+, annual revenue of $120k+, and no personal credit score requirements. For accounts receivable factoring, the funding amount is typically $10k-$10 million, factor rates starting at 1% p/mo, and up to 24 months. For revenue-based financing, the funding amount is typically $5k-$5 million, factor rates starting at 1%-6% p/mo, and 3-24 months.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
