As a business owner, you know that putting out fires and finding solutions is a part of the job.
When the unexpected happens, emergency business loans are available to help bridge the gap.
Whether large or small, emergencies happen, and when they do a quick injection of working capital may be exactly what you need to avoid catastrophe and keep things running smoothly.
In the past, getting this kind of fast funding was impossible. Fortunately, with the evolution of fintech and alternative lending, small business owners can avoid the lengthy approval process associated with traditional banking and resolve unexpected business emergencies within as little as 24 hours.
Having funded over 10,000 clients, we’ve encountered our fair share of scenarios where the business owner required a business loan fast due to an unforeseen circumstance.
Get an emergency business loan from Excel Capital
If you’re in need of capital fast, apply with us to find out how much you can be approved for:
Get the funding your business needs in as little as 24-48 hours:
With that said, let’s look at several popular options for emergency business loans. Then, we’ll look at what you’ll need to improve your chances of being approved.
Types of Emergency Business Loans: 3 Options
“Emergency business loans” is an umbrella term that refers to any business loan product that you can obtain quickly (i.e. perfect when you have an emergency or simply need funding fast).
Within that umbrella, there are a few major funding options that are ideal for getting super fast funding.
Below are three loan options, each unique in both how they’re repaid, how much you can be approved for, and how fast you can get the funds:
1. Split Funding / Merchant Cash Advance
Speed: Approval in as little as 24 hours, funding within 2-3 days
Apply for a merchant cash advance with Excel Capital:
Split funding, also referred to as a merchant cash advance, utilizes your future credit card sales to offer an advance which is then paid back by splitting receivables.
This type of business funding is ideal for businesses with strong, consistent credit card sales, especially those who may not be in a position to be approved by other types of loans and financial products.
However, for those looking for same-day business loans, the next two options may be better options.
2. Unsecured Business Line of Credit
Speed: Approval in 30 minutes, funds instantly
Apply for an unsecured business line of credit with Excel Capital:
An unsecured business line of credit provides a credit line to your business based on your business’ receivables.
This is a great option for businesses who tend to have a large accounts receivable and get tied up in terms of cash flow waiting for large payments from customers and clients.
An unsecured business line of credit is great for bridging that gap and smoothing out cash flow concerns, allowing for both peace of mind and a more stable business in general.
And if you’re looking for same-day funding, this is likely your best bet as approval and funding can happen within minutes (provided you have everything in order).
3. Short-Term Loans
Speed: Approval in 24-48 hours, funding in less than 72 hours
Apply for a short-term loan with Excel Capital:
Short term loans are the most straightforward product on this list. It’s simply a lump sum loan designed to be paid back within a short period of time.
This type of emergency business loan offers a business short-term cash and is ideal for anyone who just needs a lump sum of cash to get through a slow season, deal with a business emergency, or put towards jumpstarting a new initiative.
It also has the simplest repayment terms for those looking for a more straightforward funding option and loans are typically funded in less than 72 hours making them one of the fastest options available.
How to Improve Your Chances of Being Approved for an Emergency Business Loan and Get Same Day Funding
While the application and funding process for alternative lending and emergency business finance is lightning fast compared to traditional loans, the process is a bit different.
The speed at which that process moves is partly in your control, so it’s important to know what you need in advance so that you can move the process along and get your funds quickly.
The better prepared you are, the faster you can gain an approval, the better interest rate and loan terms you’ll receive, and the sooner the funds will land in your account to handle that emergency.
With that in mind, here are a few things to know:
- Get your things together: Have both four months of your most recent bank statements and four months of business credit card processing statements (if your business accepts credit cards) ready before applying.
- Bankruptcies, Negative cash flow, and poor loan payment history are the primary red flags that alternative lenders look for: While they won’t outright deny your application they will require a stronger showing in other areas to counterbalance.
- Annual revenue, debt obligation, cash flow, and profitability are primary factors for approval (have extra paperwork ready): For emergency funding for small business requests over $150,000.00 It’s best to gather additional paperwork such as your last filed tax return and year to date profit and loss statement and balance sheet in advance as that may be required as well.
- Minimum time in business: Most alternative lenders require a minimum business age of 6 months to 2 years depending on the lender, the loan type and the strength of your revenue.
- Minimum annual revenue: Most emergency business loans require a minimum annual revenue, typically about $100,000 for an unsecured business loan in particular.
The application process for most alternative lenders is quick, simple, and straightforward.
However, it’s important to have your things in order beforehand to not just increase your chances of being approved but also to speed up the approval process so that you can receive the funds in as little time as possible.
Get the funding your business needs in as little as 24-48 hours:
Why Use Alternative Funding for Urgent Small Business Loan?
Acquiring working capital through a traditional lending channel can be a long and tiresome process.
Traditional lenders have strict rules and guidelines, and usually, analyze all of your business history in order to make a decision.
What makes obtaining emergency business lines of credit and loans through an alternative finance solution provider, such as Excel Capital Management, different?
For starters, lenders that provide emergency business loans typically take everything that makes up your business into play when presenting an approval and offer.
These factors include your cash flow, business credit score, character, personal credit score, length of ownership, revenue, and for large funding rounds (over $100k) they can request tax returns and financial statements.
While this sounds serious, it is actually beneficial. If you’re lacking in one area, often times, the others will make up for it. Not being 100% up to par shouldn’t mean an immediate decline.
Unfortunately, with traditional financing through big banks, that’s often the case. In addition to having a minimum credit score (such as with SBA loans), as the borrower you’ll also have to deal with risky loan terms such as putting down collateral.
That’s where alternative financing comes in.
Generally, for an emergency urgent business loan, an alternative lender only needs four months of recent business bank statements, four months of recent business credit card process statements (both of which we discussed earlier), and a simple application.
Additional documentation may be requested if needed, but typically an approval and an emergency business cash out can occur in as little as one to three business days!
Getting funded shouldn’t be a lengthy, tedious process. Time is money and you need to get your business back on track after all.
Should You Apply with a Traditional Lender Like a Bank?
Most traditional lenders can take weeks or even months to get you approved for funding so an emergency small business loan is out of the question.
In addition to this, the application process is heavy on confusing paperwork and tiresome back-and-forth communications.
However, with our unsecured business loans and lines of credit programs, we can have your business approved for emergency business funding in as little as 10 minutes in other words same day business loans for you.
As leaders in the alternative lending market, Emergency business loans with bad credit are not a problem, we have the ability to expedite your funding process and get the business capital you need to take care of that emergency right on time.
When looking for funding you need to consider how the business funding will help and is the cost worth it. When faced with a business emergency, ensuring a fast turn around time to resolve the need is more important than saving a few points on the cost.
Think about a typical emergency you might face– not being able to meet payroll because a client payment was delayed, for example– and how that might affect your entire business in the long run.
Emergency business loans can give your business the emergency business funding it needs to cover payroll and avoid losing key players on your team due to a simple cash flow disruption.
If your business has fallen on tough times and you need access to additional capital quickly, emergency business finance could be just the answer to put your business back on track for success!
If you’re in need of emergency business loans, apply now to find out how much your business qualifies for to get an emergency business funding the same day.
Complete our online application and discover how much you can be approved for:
What Can You Use An Emergency Business Loan For?
Next, let’s talk about what you can use an emergency business loan for.
You can use emergency business financing for just about anything so long as it’s a business-related expense.
To better illustrate that, below are several real-life scenarios from actual Excel customers. These are all situations where business owners needed a fast small business loan due to an emergency:
1. A trucking company needing a loan due to a semi-trailer breaking down
One day, a trucking company in Florida suddenly had one of their semi-trailers break down.
If not repaired fast– next-day fast– they would have had a severe cash flow crunch.
Fortunately, we were able to provide them with a short-term loan for $55,000 to repair the big rig and get back on the road, minimizing downtime and completely avoiding the potential loss.
2. An accounting firm lost its main administrator three weeks before tax time
Due to tax season, most accounting firms make the majority of their revenue between January and April 15th of a particular year.
Due to the industry’s seasonality, the firm had a revenue slow-down while at the same time trying to prepare to provide their services to clients for the upcoming busy season, most notably hiring and training new employees. This all occurred at the same time they received their main administrator’s notice.
We helped them receive an unsecured line of credit in just 48 hours to assist with the hiring emergency.
3. A general contractor came to Excel in need of funding to pay for materials to complete a house remodeling
Because most general contractors don’t get paid until a job is completed, they often have to pay for building materials for a job out of pocket. This can place a huge burden on cash flow.
We provided this particular contractor with an urgent business loan for $75,000, providing him with the capital to purchase the materials they needed for the current job, as well as additional capital leftover to catch up on other bills and expenses.
4. An Insurance agency needed short-term funding to pay for a tax lien
A Nevada insurance agency needed an insurance agency loan to pay for a $25,000.00 tax lien that was getting close to turning into a garnishment that would freeze all of the assets of the business.
This tax lien cause the business owner to suffer from bad credit and unfundable by traditional standards. Excel was able to deliver emergency business loans with bad credit not being a factor.
We were able to get them a $35,000.00 unsecured business loan in 24 hours. This allowed them to pay the IRS and avoid penalties and interest and avoid a cash flow crunch that could have more severe residual impacts on operations.
5. An auto repair shop’s car lift broke down leaving them with a need of $10,000 to buy and install a new one
Without the lift operating in the shop, mechanics at a Houston repair shop were on pace to lose up to $2,000 per day.
We were able to provide them with a split funding solution for $11,500 within just 24 hours of applying. The lift was installed the same week and business went right back to normal.
6. Michelle Smith, owner of a popular Georgia convenience store encountered a financial hardship due to a severe thunderstorm
Unfortunately, high winds and rain caused bad structural damage to her store. As a result, Michelle had to put all of her existing business capital into repairs and maintenance, thus, resulting in late payments on bills and a lack of inventory purchases.
Not having such a pretty appearance due to the construction, as well as understocked shelves, meant fewer customers, and ultimately less revenue.
After doing some research online, Michelle contacted us to apply for an emergency business loan. We were able to approve her quickly and she got the $75,000 she needed to fix up her shop and restock just three days after initially applying.
7. Paying past-due bills with suppliers in Miami
Getting behind with suppliers is a dangerous catch-22.
You need supply to produce more product to sell, but what do you do when you’re so behind on payments to suppliers that they’ll no longer ship you to make that product in the first place?
When a Miami restaurant contacted us about being delinquent with suppliers, we got them approved for a restaurant business loan and they got the $15,000 line of credit they needed to cover their past-due bills and better manage payments to suppliers moving forward.
Find the Best Emergency Business Loans: Get Emergency Business Funding with Excel Capital
At Excel Capital, we know that sometimes the unexpected happens.
We’ve helped more than 1,000 clients obtain the funding they needed when they needed it, no lengthy or complicated application process required.
Let us help you get the funding you need quickly without the hassle:
Get the funding your business needs in as little as 24-48 hours:
