Share on facebook
Share on twitter
Share on linkedin

4 Fastest Business Funding Sources Every Entrepreneur Should Know

Starting a business does not always need a lot of money and there are a lot of no cost home business ideas that you can start without any investment. You do not necessarily need to have big bucks to fund your idea, you can begin a startup with as little as $1000, or even less!

However, as a fact of the matter, every business requires money to grow to the next level, and so, even your “no cost startup” will need some money at some point of time.

So, if you are planning to start a low cost business that requires handy cash for the setup, or you have already started working on turning your dream business idea into a successful reality, certainly you’ll be looking for quick funding in order to take it to the next level.

Even if the business expansion is not the plan for now, you still need to make sure that you have enough capital and are not going to run out of money while working on your startup.

There are numerous startup funding options, i.e. friends and family, angel investors, crowdfunding, business grants and loans etc., but you need to have a proper business plan with convincing financial data to influence all these people to invest in your startup. You must know that developing such a business plan requires parallel time and effort.

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.

At times, you may miss a big opportunity while waiting long for getting a convincing business plan ready, and you need handy cash. Your business may also face a cash emergency.

Yes, you should work on business plan (with emergency funding plan) in parallel, but always keep these four fast business funding sources as well.

1- Credit Card Cash Advance

This is probably the fastest loan option whereby you can get quick cash from your credit card issuer using your card at an ATM. Credit Card Cash advance is fastest, however it comes with some limitations;

  • The amount is usually are capped at a fraction of your credit limit (you can view the exact amount in your credit card account).
  • It comes at a high cost; the APR is much higher than other regular purchases.
  • Most issuers also charge a cash advance fee that can range from 3% to 5% of the amount borrowed.
  • The interest on credit card cash advances starts accruing immediately, i.e. you have to pay back the cash as soon as possible.

2- Car Title Loans

This is another option for fast loan for your startup whereby you can get up to $5000 within 24 hours by keeping your car as a collateral. And in fact, Car title loans in California are one of the popular fast business funding option.

Just like other type of fast loans, car title loans also have their pros and cons and here’s a quick list of things you must know about car titles loans.

  • You must own the title to the car, and in exchange for this secured loan, you hand over your title and a copy of your keys to the lender until you completely pay off your loan.
  • Anyone who owns a car can qualify.
  • Loan is approved faster, i.e. within 24 hours in most cases.
  • You keep your car, but you could lose it in case of non-payment.
  • High interest rates.

3- Online Installment Loans

There are various online financial companies that can help you with quick cash in business emergency, however, the qualification is required to get an installment loan, i.e. to get an installment loan you must:

  • Be at least 25 years old.
  • Have a bank account, as most of the lenders prefer to transfer funds directly to bank accounts.
  • Have a minimum income around $1300 (it is considered as a proof that you will be able to pay a debt off).
  • A proof of employment.

You can borrow up to $5000 with online installment loans and the best part is that it is easy to repay, i.e. you borrow the money once and then pay off a debt gradually with fixed monthly payments set by your lender and agreed with you.

Just like other loans, online installment loans also have their disadvantages, and the biggest drawback about these loans is that lenders don’t advertise fees and different forms of credit insurance, which will increase the sum of repayment. However, you can find the best deal with little research and talking to the lender about this before borrowing money.

4- Merchant Cash Advance Loan

You can borrow a bigger amount of money with merchant cash advance, i.e. $20,000 or even higher. You can get your loan approved within 24 to 48 hours with minimal paperwork. However, it has its own qualification criteria, i.e.:

  • Your business must make daily credit card transactions with a minimum $2,500 to $5,000 monthly credit card billings.
  • Proof of at least four months history of credit card sales.
Paying by card

Please note that these loans are normally for the retail, restaurant and service companies, so apply only if you fall in the relevant industry. Moreover, these loans are Principal + Fees to be repaid in within 6 to 12 months and these loans can be considerably more costly than traditional financing as you are paying a certain percentage of your daily credit card sales to the lender and you cannot also switch the credit card processors till the agreement period.

The Bottom Line;

Whether you need quick cash to start a new small business, take an existing business to the next level, or want handy cash to meet a cash emergency for your business, knowing the available options for quick funding sources can help you avoid the hassle and frustration in tough times. I am sure, the above listed sources of quick startup funding will help you make a better decision.

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.