How can you get an instant loan for your business? That question has been coming up a lot lately, so I am going to address it in this article and talk about the exact requirements, what it takes to get an instant business loan, if they are even available. We are going to dive right into that.
First of all, my name is Erik Johnson. I am a Business Funding specialist that helps small businesses get the funding they need – fast working capital. So let’s dive into this: what are instant small business loans? Are they available? Is it real? Is it a myth? Is it a hype? Let’s get into it.
How to Get an Instant Loan for Your Business
So the fastest types of business loans out there right now are in the alternative lending space, which is a $34 billion a year industry. About $10 billion of that comes from the merchant cash advance industry, also known as business cash advances.
Now these types of advances use AI and they use algorithms which are part of the FinTech lending marketplace. So a lot of these lenders now are tapping into the FinTech marketplace to find the best deals for you using algorithms and AI.
Using FinTech for Fastest Instant Business Loan Approvals
So that is how you can get the fastest business loans approved because they’re using algorithms and AI to find you the best deal. They are looking at your criteria; they are looking at your credit, they are looking at how long you have been in business, how much you generate each month with your business and so forth.
I have seen approval times as fast as two hours where they have applied and have received their funding two to four hours at the most. So it is pretty close to an instant business loan, but it is not exactly instant.
Here is the reason why: the reason why it is not exactly instant is because they still need human eyeballs to look at the final underwriting. They still need humans to do the final underwriting on your application to look at your bank statements, to look at everything over because AI is great, but it is still not perfect.
Instant Loan for Your Business Requirements
Here are the requirements that we offer. You need to be in business for six months. You need to have a business checking account. This can’t be a personal bank account at all. It has to be a business checking account, so you have to be a real business.
Number two, you have to have a FICO of 450 or higher. Now that is incredible. That is why the alternative lending space is thriving and growing super fast right now, way faster than big banks because big banks, truthfully, they’re so big they can be super picky with what money they lend to.
FinTech Lending vs Traditional Banking
Because, I mean, if you were a billionaire, you would probably pick the cream of the crop too. And so what they are doing is they are looking at businesses that only have perfect credit. They have collateral to put up and they have been in business for over two years.
So the alternative lending space has totally disrupted that, and now you can get financing within a few hours having a credit score of 450 to 500. You only need to be in business for four months, sometimes to six months, and generating $5000 a month or more.
Who Can Use Instant Business Loans
Those types of requirements are geared towards the people that are struggling, but they still have cash flow. They are still making money with their business but they need fast working capital to maybe fix a piece of equipment or to expand their business.
Right now is the greatest time to expand your business. We got past the pandemic. Now there’s inflation. That’s fine. We’ll get over that as well. But the good news is, a lot of businesses are coming back and they’re coming back stronger than ever.
People are tired of staying at home, they want to get out, they want to spend their money and businesses are thriving. So the best type of working capital that’s as close to instant business funding as possible is going to be your merchant cash advance and business cash advances and so forth.
So I hope this helps. Thanks for reading. Fill out the five minute application to see if you qualify. I will leave a link right under this here – and good luck!