Cash flow is king, and running out of it can kill a business faster than just about anything else.
Your product or service might be great, and your customers could be loyal. But if you can't cover payroll or pay suppliers on time… well, you're in deep trouble. In fact…
According to SCORE research, 82% of small businesses go out of business due to cash flow problems.
Yes, running out of cash is a death sentence for most companies. But what if we told you that fast funding for your business doesn't have to be complicated? You can have the capital you need, stat. No waiting months for approval nonsense. We'll show you how…
As you know, getting cash quickly can be the difference between growing your business and closing up shop. Today, we're going to show you exactly how to get fast access to funding for your business when you need it.
Get ready to get your cash flow working again.
Why Speed Is Essential for Business Financing
Fast Funding: The Most Suitable Options for Your Business
Qualifying for Speedy Business Financing
Slow Down Funding Mistakes
Why Speed Is Essential for Business Financing
If you've ever negotiated a deal in your life, you know that time kills deals.
It also kills businesses, by the way. When you need capital to cover an unexpected expense or seize a growth opportunity… waiting 60-90 days for a traditional bank loan just doesn't cut it. That's one of the reasons why fast business funding has become so popular in recent years among business owners who need to move quickly.
Imagine this for a second:
Your biggest competitor just went out of business, and their customers are looking for a new supplier. You could soak up all of that market share if you just had the inventory to serve them.
But you don't have the cash on hand. You go and apply for a loan and end up waiting two or three months before a traditional lender even looks at your application.
By the time a loan comes through, those customers have moved on to someone else.
Speed kills. Or in the case of business, speed is everything. Financing is no exception.
Fast Funding: The Most Suitable Options for Your Business
Ok, so not all business financing options are created equal.
Some will take forever, some will take a few days, and others can have you swimming in cash within hours.
Here are the fastest funding options you should be considering:
Merchant Cash Advances
This is one of the quickest ways to get capital for your business. In a nutshell, a lender will give you a lump sum upfront in exchange for a percentage of your future sales.
The approval process is lightning fast because the lender is more concerned with your revenue stream rather than your credit score. A lot of business owners get funded within 24-48 hours through this method.
Business Line of Credit
A line of credit is similar to a credit card for your business. You get approved for a maximum amount and only draw what you need, when you need it.
The great thing about this option is that after you're approved… you can access funding instantly as many times as you need. You don't have to reapply over and over again.
Invoice Factoring
If you've got unpaid invoices taking up space in your accounting software, invoice factoring is perfect for you.
Invoice factoring is where you sell your unpaid invoices to a factoring company for immediate cash.
So instead of waiting 30, 60, or 90 days for customers to pay you, you get a large percentage of that money upfront. The factoring company then collects the money directly from your customers.
Short-Term Business Loans
Here's where online lenders have really changed the game. A traditional bank can take them months to get you funded. But online lenders can get you cash in a week or less.
The tradeoff, of course, is the interest rate tends to be higher when you go online. But when you need capital fast, sometimes you have to pay that price.
Equipment Financing
Got a new piece of equipment that you need to grow your business? Equipment financing is the answer. Equipment financing uses the equipment itself as collateral.
Collateral makes it easier and faster to get approved because the lender has less risk. If you default, they can just repossess the equipment.
A lot of business owners get funded in a matter of days using this type of funding.
Qualifying for Speedy Business Financing
Do you want to maximize your odds of getting approved quickly for business financing? Here's what to focus on.
Have Your Documents Ready
Believe it or not, the number one reason people have delays getting approved is because they don't have their documents in order.
Lenders will want to see bank statements, tax returns, and evidence of revenue. Have those documents ready to hand over before you apply and it will speed up the process significantly.
Wait until the lender asks for them. Prepare everything in advance so there are no delays.
The majority of lenders will ask for at least 3 months of bank statements. Some want 6 months, others want a full year. If you've got a full year of statements on hand before you apply, you're ahead of the game already.
Know Your Numbers
How much revenue does your business generate? How much are your monthly expenses? What is your credit score?
Knowing these numbers off the top of your head is not only useful when applying for funding, but it also helps to impress lenders who know you understand your business.
Build Business Credit
I can't stress enough the importance of building separate business credit from your personal credit score.
Go out and get a business credit card and start using it. But be sure to pay off the balance on time each month.
You're building a positive payment history that lenders like to see when you apply for funding.
Choose The Right Lender
Did you know that a whopping 77% of small business owners are worried about their access to capital, according to a recent poll?
What most small business owners don't realize is that different lenders specialize in different things. Some specialize in startups and small businesses. Others work with established businesses.
If you apply to the right lenders, your odds of approval go through the roof.
Slow Down Funding Mistakes
If you want to avoid slow funding for your business, here are some common mistakes to look out for:
Applying without proper documentation – Missing paperwork is the number one cause of delays when applying for funding.
Not understanding your own financials – Lenders will ask you questions, and if you can't answer them quickly, it drags out the entire process.
Applying to the wrong type of lender – Startup business applying to a traditional bank is time wasted.
Waiting until you're in a state of desperation to apply – Apply before you need it, so you're not scrambling when you do need funding.
Simple, right?
The businesses that get funded the fastest are the ones that prepare properly. They have their documents ready, they know their numbers, and they know which lenders to apply to.
Wrapping It Up
To sum up, mastering quick business financing is really all about preparation and knowing your options.
Cash flow problems don't wait, so neither should you when it comes to getting your hands on the capital your business needs.
This is what you should do next:
Organize your financial documents
Review your revenue and expenses
Research and find which funding option is most suitable for you
Apply to lenders that match your business profile.
The businesses that survive and thrive are the ones that can access capital when they need it. Don't let slow funding become the bottleneck that holds you back from all the opportunities waiting for you.
Fast funding for your business isn't about luck. It's about being prepared and knowing where to look.
