Small business owners know that time is money. When you need a loan to cover unexpected expenses, grow your business, or take advantage of new opportunities, every day counts. That’s why speed to fund is so critical for small businesses.
What is “speed to fund”?
Speed to fund is the amount of time it takes for a lender to approve and fund a loan. Traditional banks can take weeks or even months to approve and fund a loan, but online lenders can often approve and fund loans in as little as 24-48 hours.
Why is speed to fund important for small businesses? There are a number of reasons why speed to fund is so important:
- To take advantage of new opportunities. When you see a new opportunity for your business, you need to be able to act quickly. If you have to wait weeks or months for a loan to be approved and funded, you could miss out on the opportunity.
- To cover unexpected expenses. Unexpected expenses can happen to any business, but they can be especially devastating for small businesses. If you don’t have the cash on hand to cover an unexpected expense, a fast loan can help you avoid financial hardship.
- To grow your business. If you want to grow your business, you may need to invest in new equipment, inventory, or marketing initiatives. A fast loan can help you get the funding you need to grow your business quickly.
How to choose a lender with fast speed to fund
When choosing a lender, it’s important to consider their speed to fund. You can ask lenders how long it typically takes them to approve and fund loans. You should also read online reviews to see what other borrowers have experienced.
Here are a few tips for choosing a lender with fast speed to fund:
- Look for alternative lenders. Alternative lenders, sometimes also known as online lenders, are typically faster than traditional banks because they have more streamlined processes which rely on technology to assess a borrower’s business’ health, while banks rely on a manual process with paper documentation, often calling to verify and fully understand a business’ business plan and projected income before making any decisions.
- Choose a lender with a fully online process. While all lenders have websites, some of these sites are just so they can bombard you with phone calls and emails. Look for a lender that has a fully online process so you can quickly see for yourself how much you actually qualify for before deciding to spend time talking to anyone in sales.
- Have all of your documentation ready. When you apply for a loan, you’ll need to provide the lender with documents, such as bank statements, and information on your business like your business start date. Having all of your documentation ready will help the lender process your application more quickly.
Speed to fund is critical for small businesses. When you need working capital, you need to be able to get the money you need quickly. By choosing a lender with fast speed to fund, you can avoid financial hardship and take advantage of new opportunities to grow your business.