Sometimes small businesses need money fast, but they only need a few thousand. Big banks are likely not going to give you $2,000 to $5,000 tomorrow like merchant cash advance lenders will. Here’s how you can get up to $25,000 the same day with same day small business microloans.
What are Same Day Small Business Microloans
Same day small business loans are basically business cash advances, which is a type of advance which is a majority contributor to the overall $33 billion alternative lending industry.
Business cash advances and merchant cash advances allow a business owner to get working capital extremely fast without a lot of restrictions that banks have.
If you have a 450 credit score or higher, and generate over $5,000 per month in revenue, you are already more than half way to getting fast capital for your business, and in most cases, the same business day. You also don’t need to provide any collateral.
MCA and BCA allow you to quickly borrow $2,000 to $25,000 the same day. They are mainly approved or disapproved by your cash flow and health of your business checking account.
If you have less than 5 NSFs (negative days in the bank) the last 3 months, and don’t have too many outstanding loans elsewhere, then you are in great shape.
Why Use Same Day Small Business Microloans
Same day microloans are commonly used for emergencies or catching up with past due payables. However, you can use the money for a number of beneficial reasons, including advertising, expanding your footprint, fixing a piece of equipment, or restocking on certain inventory.
Business cash advances are great for the small business owner who doesn’t have perfect credit and can’t wait weeks or months for a traditional bank loan.
If you have a credit score over 680 and are willing to put up collateral and wait weeks for the funds, then go ahead and go through a big bank. However, most small businesses are under attack more than ever right now and need some money just to keep going.
How Much Can I Borrow?
We have two types of loans: the same day business advance up to $25,000 allows you to get an advance that is up to 75% of your monthly revenue. So, if you make $10,000 per month and your bank statement looks great, you can get up to $7500.
The other loan that can get you up to $2 million, can get you up to two times what your monthly income is,however you need a credit score of a 500 or more and earn $20k per month in business revenue. So, if you earn $100k with your business (in the last four months) you are looking to get up to a $200k loan.
Same Day Small Business Microloans Rates
The rates for business cash advances are straightforward. They use “factor rates” instead of interest rates and are easy to calculate. For instance, if you get a factor rate of 1.20, then you would use that and multiply the principle and that’s the total you would pay back.
Example: lock in a 1.20 factor rate and you would pay back $12,000 if you borrowed $10,000. (1.2 x 10,000)
Factor rates increase the longer it takes to pay off the advance. Our factor rates range from 1.19 to 1.49 – with the average term being 6 months or less.
Applying for Same Day Small Business Microloans
Over 10 million small businesses closed in 2020. Some will never come back. The landscape of commerce has been severely scarred by the pandemic while large corporations have skyrocketed their profit margins.
We are devoted to helping every small business in America survive and thrive going forward. We are a family-owned business ourselves and have helped thousands of small businesses get the capital they need to stay open.
Again, if you make over $5,000 a month from your business only (no other income streams), have been in business for six months or longer, and have a FICO of 450 or higher then apply HERE.
It takes just 5 minutes to see if you qualify and how much you can get. If you agree with the pre-approved dollar amount and terms then click “agree.” It will take you to the next screen where you connect your business checking account.
If your bank info is concise and your revenue checks out, you will get a contract to your email and also a text message. If you don’t see the email, check spam. Do not reapply.
Once you receive the contract, sign it and reply back. There will be a final underwriting stage and if everything looks good, you can see the funds within a couple hours or the next business day.
You will also get a dedicated account manager to help assist your funding needs. Plus, you can always ask for more funds after 5 months of making payments. I wish you all the success in the world and god bless!
Erik C. Johnson