How to get Small Business Loan Quickly?

Increase Your Chances of Getting Small Business Loans Quickly

Type ‘small business loans’ into Google and you’re likely to see dozens of offers with low interest rates. However, the speed with which your small business loan is funded is just as important. After all, a delay in funding could threaten the viability of your business. Most online lenders approve small business loans rather quickly – usually within 24 hours. However, much depends on the application process and eligibility criteria:

Business Loan eligibility

For your small business loan to come through quickly, you would first need to make sure you qualify. Lenders have their specific eligibility requirements as follows:

How long you have been in business in Australia? 

For business loans, Australian lenders require applicants to have been trading for a minimum of 6 months. In some cases, the minimum ‘time in business’can go up to 2 years.

Annual turnover: 

You should also have a minimum monthly turnover for lenders to approve a small business loan. The exact amount can vary from lender to lender and may also depend on the type of loan. 

Credit score: 

The odds of loan approval are higher if you have a good credit score. Lenders will correlate your business credit score with your personal credit to assess your ability to repay. 

What’s the loan for? 

If you need the loan for buying office equipment – a one-time purchase – a business loan is the best option for you. However, if you are looking for a long-term source of funds, a line of credit may be a better option.

Small business loan application process:

Australian business loan providers have simplified their application process over time. It usually takes just 5-10 minutes to apply. However,the following factors come into play for approval.

Along with the application form, you will need to provide photocopies of the following documents. This information is used to verify your identity and for running a credit check among other things.

• Business financial statements: P&L, cash flow statements and/or bank statements.
• Driver’s license
• Your Australian Business Number (ABN)
• A business plan

Type of Loan:

Traditionally, secured loans were approved faster than unsecured ones. They were also comparatively cheaper, came with better interest rates, and lower fees. However, non-bank lenders are generally more flexible though the interest rates may be comparatively higher.

Amount of loan:

If you need a loan of $150,000 or less, you could get funded in 24 hours. However, if the loan amount is greater, the turnaround time could be up to 72 hours depending on the lender.

 

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