Sometimes businesses need emergency funding. Maybe you find yourself in legal trouble or an act of god damages your premises. No matter how well you plan, you can find yourself in a difficult spot. When this happens, you may want to get a loan. However, traditional bank loans and SBA loans take a while to turnaround. Fortunately, a few emergency business loan options can help.
Short-Term Loans
Some lenders offer special short-term loans including bridge loans and hard money loans. Depending on the amount you need, you may need to put up some collateral to secure the loan. However, for smaller amounts, you may also be able to find an unsecured, short-term loan.
These types of loans typically have higher interest rates and may include other fees. However, they can turnaround quickly. Some lenders can deposit funds in your account the day after you get approved. This option can be helpful in a pinch.
Cash Advances
Many lenders offer merchant and business cash advances. These give you money now for a portion of your sales later. They are exactly loans, but they function similarly in a lot of ways. A merchant cash advance is an option if you accept credit cards. You get money right away, often as quickly as 24 hours, and you pay it back from your merchant account.
A business cash advance is similar but less commonly available. Instead of paying from your merchant account, you pay from your sales. Typically, this is through an automatic withdrawal from your bank account.
Express Bank Loan
Some banks offer express loans for businesses. If you are able to use this type of lending, it can be favorable. You will likely only be able to get a relatively small loan. However, you will get the funds quickly.
Additionally, bank loans are more regulated which can provide you with some extra protections. There are also SBA express loans. These are quicker than a normal SBA loan but not that fast compared to other options mentioned above. It likely is not a viable source of emergency business loans.
Learn more about getting emergency funding so you can be ready when your company needs it. Emergency business loans can be valuable tools, especially if you find yourself in a difficult spot. While budgeting and planning can help avoid the need, being aware of the options is a smart way to be ready for anything.
