April 2024

Emergency Business Loans: Options for Urgent Business Funding

September 28, 2026April 17, 2024 by Simon Reed

A woman business owner reviews unexpected repair costs in a storm-damaged shop.

Emergency business loans can help cover unexpected business expenses such as urgent repairs, payroll gaps or overdue supplier bills. Options may include a short-term loan, a business line of credit or other financing, depending on your business and the expense.

An unexpected bill can put you in a tough spot. The goal is to cover what you need now without leaving your business short of cash when payments come due.

A broken piece of equipment, a late customer payment or a storm can interrupt an otherwise healthy business. Extra working capital may help you keep things moving while you deal with the problem.

Some businesses can get funding quickly. But approval is only one step: your lender may still need documents, a signed agreement or time to send the money to your bank.

Start by comparing your options, then gather the documents you may need. We’ve also included examples of how Excel Capital customers handled unexpected expenses.

Explore emergency business funding with Excel Capital

If you’re in need of capital fast, apply with us to find out how much you can be approved for:

Compare available funding options and expected funding times: Apply Now

With that said, let’s look at several popular options for emergency business loans. Then, we’ll look at what you’ll need to improve your chances of being approved.

Can you get same-day emergency business funding?

Sometimes, but it isn’t guaranteed. Getting approved and receiving the money are two separate steps. The provider may still need to check your documents, verify your bank account and receive your signed agreement. Bank processing times and daily cutoffs also matter.

Before you commit to an urgent expense, ask when the money is expected to arrive. For a closer look at transfer conditions and funding speed, see our same-day business loans guide.

If you already have a business line of credit, drawing from it may be faster than applying for new funding. OnDeck’s funding FAQs, for example, explain the different conditions for same-day funding and instant draws. Each provider has its own rules, so check the terms of the offer you’re considering.

Emergency business loans and funding options

Compare emergency business funding options

Start with the expense and the cash available for repayment. The fastest offer is only useful if the payments fit your business.

Swipe the table sideways to compare repayment details.

Funding option	When it may fit	Costs to compare	Repayment and checks
1. Existing Line of Credit	A temporary payroll, supplier or repair gap when you already have available credit.	Your existing agreement. Depends on when you opened or renewed the line, fixed or variable pricing, current balance and fees. Check today’s rate and remaining availability.	Confirm available credit, draw conditions and deposit timing. An existing facility still has conditions.
2. New Short-Term Loan	A defined urgent expense with a realistic plan to repay a lump sum.	13-28%+ APR. Depends on the product and lender. Compare fees and the daily or weekly payment.	Check daily, weekly or monthly payments. Underwriting and bank transfers take time.
3. New Business Line of Credit	Uncertain or recurring cash-flow gaps that may require more than one draw.	18-36% APR. Compare draw fees, repayment periods and the cost of each draw.	Review repayment terms and any guarantee. A new credit line requires an application.
4. Invoice Financing or Factoring	A cash gap tied to eligible unpaid customer invoices.	2-4% of invoice value per 30 days. Check the fee base and how charges increase if your customer pays late.	Check customer notification, recourse and who collects payment. Eligibility depends on the invoices and provider.
5. Merchant Cash Advance / Split Funding	A business considering an advance against future receivables.	Excel Capital’s observed pricing: 20-49% total cost of capital over the approved expected term. Check extra fees and how collections adjust to sales.	Review collection frequency and adjustment terms. Frequent collections can strain cash flow.
6. Home Equity Line of Credit (HELOC)	A homeowner considering available home equity for a business expense, if the lender permits that use.	7-12% annual interest. Usually variable. Closing costs and ongoing fees may add to the cost.	Your home secures the debt. Check draw access and repayment changes. A new HELOC is not guaranteed same-day funding.
7. Unsecured Business Loan	A defined urgent expense when a business seeks a lump sum without pledging collateral. Can also be a short-term loan.	15-36%+ annual interest. Check origination fees and how much cash you receive after deductions.	Credit review and a personal guarantee may apply. Funding is not guaranteed.

The sections below follow this table’s order. For damage or lost revenue from a declared disaster, see the SBA section below.

Before you compare: These ranges are estimates; your offer and funding date depend on your business, the product and the provider. APR includes interest and certain fees; annual interest alone does not. Factoring fees are charged by invoice period, and MCA costs cover the approved expected term, not a year or fixed repayment term. Compare net cash received, total cost and the payment or collection schedule. See the worked cost example.

“Emergency business loans” describes a funding need rather than a single financial product. Loans, lines of credit and receivables-based financing differ in cost, repayment and eligibility. Here is how the seven options in the table work, starting with funding you may already have available.

1. Existing Line of Credit

Start with the credit you already have. If payroll is due Friday or a piece of equipment needs repairing, an available line may save you the work of applying somewhere else. Check the amount you can draw today, not just the limit printed on your original agreement.

Your cost depends on when you opened or renewed the line and the terms you currently have. Look at your latest statement for the rate, outstanding balance and any draw fees. A fixed rate may stay the same; a variable rate can move with its benchmark.

Call your provider with two questions: when will the draw reach your account, and what will it add to your payments? If the line covers only part of the expense, work out the remaining shortfall before taking on another funding agreement.

2. New Short-Term Loan

A short-term loan fits a problem with a clear price tag and a realistic way to repay it. Replacing a broken commercial refrigerator is one example: you know the repair or replacement cost, and getting it running lets the business keep serving customers.

Budget around 13-28%+ APR, depending on the product and lender. Then look beyond the rate. A daily or weekly payment starts taking money out of the business quickly, so compare that payment with the cash you expect to have after covering payroll, rent and suppliers.

Before accepting, confirm the net amount you will receive and the deposit date. If fees are deducted upfront, the approved loan amount may not cover the whole bill. Borrowing a lump sum makes more sense when you can identify both the expense and the income that will repay it.

Apply for a short-term loan with Excel Capital: Apply Now

3. New Business Line of Credit

A new line of credit can help when you know a cash gap is coming but do not yet know its full size. You might need to pay suppliers now, cover payroll next week and draw again if a customer payment arrives late. Access to smaller draws can be more useful than taking one large loan upfront.

Allow for 18-36% APR when comparing costs. Check whether each draw has its own fee and repayment schedule, and whether paying down the balance restores your available credit. Those details determine how useful the line will be after the first emergency.

Opening a line still takes an application and review. Ask what remains outstanding before funds can be drawn, and whether a personal guarantee is required. If a bill is due today, get a realistic funding date before relying on a new approval.

Apply for an unsecured business line of credit with Excel Capital: Apply Now

4. Invoice Financing or Factoring

If you have completed the work but are still waiting to get paid, start with those invoices. A business with an unpaid customer invoice and a repair bill due this week has a different problem from one without incoming revenue.

Invoice financing uses receivables to support borrowing. Factoring generally means selling invoices to a provider, which may collect directly from your customers. Find out who will handle collections and whether your customers will be notified.

Costs of 2-4% of invoice value per 30 days make the customer’s payment date important. Ask how charges increase if payment arrives late, how much cash you receive upfront and how much is held back. Also check who carries the loss if an invoice is disputed or never paid.

The provider may need to verify the invoices and check existing claims against them before releasing money. Have the invoices and supporting records ready so you can find out whether this option fits your deadline.

5. Merchant Cash Advance / Split Funding

A merchant cash advance is generally a purchase of future receivables. With split funding, collections come from a share of card sales. Other agreements use different collection methods, so start by understanding how money will leave your account.

At Excel Capital, we are seeing total costs of capital around 20-49% over the approved expected term. That expected period might be 6-18 months. It is an estimate, not a fixed repayment term; the actual collection period can change with sales and the agreement’s adjustment provisions.

The practical question is how much of each day’s sales you can spare. Look at a slower sales week and work out what would remain for payroll, inventory and rent after collections. Ask how to request an adjustment when sales fall and what documentation the provider requires.

Compare the total amount to be collected, any extra fees and the expected deposit date with the other offers available to you. An advance can address an immediate gap, but the collection schedule also needs to leave the business enough money to operate.

Apply for a merchant cash advance with Excel Capital: Apply Now

6. Home Equity Line of Credit (HELOC)

An existing HELOC with available credit may be worth checking if you own a home and the lender permits business use. Opening a new HELOC involves an application and property checks, so it is unlikely to solve a bill that must be paid today.

The 7-12% annual interest range may look attractive beside some business funding options. Add closing costs and ongoing fees, and remember that HELOC rates are usually variable. Payments can also increase when the draw period ends.

Your home secures this borrowing, even if the money goes into the business. Before drawing, work out how you would make the payments if business income stayed low. If you cannot repay, you could lose your home. The decision needs to work for your household as well as your business.

7. Unsecured Business Loan

An unsecured business loan provides a lump sum without requiring collateral. It can suit a specific expense, such as an urgent supplier bill, when you want a scheduled payment and your business can support it.

Allow for 15-36%+ annual interest. Look at the origination fee alongside the rate: an upfront deduction reduces the money available for the emergency. Ask for the payment amount and frequency so you can fit it into your regular expenses.

Unsecured does not necessarily mean you avoid personal responsibility. A lender may still require a personal guarantee, which can make you responsible if the business cannot pay. Read that part of the agreement before accepting.

This option can overlap with a short-term loan. “Unsecured” describes the collateral requirement, while “short-term” describes the repayment period. A loan can be both. Unlike a revolving credit line, the funds do not automatically become available again as you repay.

For eligibility and application details, see our unsecured business loans guide.

How to apply for emergency funding for your small business

From application to money in your account

Getting approved doesn’t mean the money is ready to spend. Here’s what usually happens before it reaches your account.

Submit complete documentsProvide the requested business details, bank statements and evidence of the expense. Missing information can delay review.
Complete the funding reviewThe provider checks eligibility, cash flow and existing obligations. Ask whether the decision is conditional.
Review and sign the agreementConfirm the amount you receive, total cost, payment schedule and any remaining funding conditions.
Confirm the bank transferAsk when funds will be sent and available. Cutoff times, weekends, holidays and your bank can affect arrival.

Same-day or 24-hour funding may be available in some circumstances; it is not guaranteed. Check the expected deposit time before committing to an urgent payment.

Application requirements differ by product and provider. Start by identifying the amount you need, when you need it and how the business will make the payments.

The speed at which that process moves is partly in your control, so it’s important to know what you need in advance so that you can move the process along and get your funds quickly.

Having complete, accurate documents ready can help avoid delays. The provider still needs to review your application, so being prepared doesn’t guarantee approval, a lower rate or same-day funding.

With that in mind, here are a few things to know:

Business and ownership information: Have your business details, identification and ownership information ready.
Recent bank statements: Ask how many months the provider needs. Card-processing statements may also be requested for sales-based funding.
Current financials: Prepare revenue figures, existing debt payments, a recent tax return and a profit and loss statement if requested.
The emergency expense: Gather repair estimates, invoices or other documents that explain the amount and purpose of the request.
Eligibility requirements: Confirm minimum revenue, time in business and credit requirements for the specific product. There is no single threshold for every emergency business loan.
Existing financial difficulties: Disclose negative cash flow, payment problems, tax liens or bankruptcy accurately. These can affect eligibility and the documents required.

The application process for most alternative lenders is quick, simple, and straightforward.

However, it’s important to have your things in order beforehand to not just increase your chances of being approved but also to speed up the approval process so that you can receive the funds in as little time as possible.

Compare available funding options and expected funding times: Apply Now

When alternative funding may fit an urgent business need

Acquiring working capital through a traditional lending channel can be a long and tiresome process.

Traditional lenders have strict rules and guidelines, and usually, analyze all of your business history in order to make a decision.

What makes obtaining emergency business lines of credit and loans through an alternative finance solution provider, such as Excel Capital Management, different?

For starters, lenders that provide emergency business loans typically take everything that makes up your business into play when presenting an approval and offer.

Providers may consider cash flow, business and personal credit, time in business, revenue and existing obligations. Tax returns and financial statements may be requested depending on the application.

Healthy cash flow can help, but lenders still look at the rest of your finances. They may turn down an application or offer a smaller amount than you requested.

For each offer, ask how much cash you’ll receive, how much you’ll pay back and how often payments are due. Check the fees and whether you’ll need collateral or a personal guarantee. These questions matter with both banks and alternative providers.

That’s where alternative financing comes in.

A provider may begin with a short application and recent business statements, then request more information. Confirm the full document list before relying on a funding deadline.

Ask two questions: When will I get a decision, and when could the money reach my account? Check whether anything still needs to happen before the funds can be sent.

Getting funded shouldn’t be a lengthy, tedious process. Time is money and you need to get your business back on track after all.

Should You Apply with a Traditional Lender Like a Bank?

A new bank loan may take longer than your emergency allows, but an existing bank relationship or available credit line may offer a practical option. Ask your bank about timing before ruling it out.

Compare the documentation required and the expected processing time with other offers. A payment extension from a supplier or an existing credit facility may meet the need without taking on new high-cost funding.

Our unsecured business loan and line-of-credit options may suit urgent needs. Available products, approval and funding timing depend on your business, the provider’s underwriting and completed documentation.

Some providers consider applicants with weaker credit, but approval is not guaranteed. Cash flow, existing debt and payment history matter, and a lower score may mean fewer options or higher costs.

Compare the cost of the emergency with the full cost of financing. Speed matters, but the repayment schedule must remain affordable after the immediate problem is resolved. Consider whether a payment arrangement with a supplier or an existing credit facility could meet the need at a lower cost.

Suppose a customer’s payment arrives late and you can’t cover payroll. Even a short cash-flow gap can put pressure on your team and the rest of your business.

Emergency business loans can give your business the emergency business funding it needs to cover payroll and avoid losing key players on your team due to a simple cash flow disruption.

If your business has fallen on tough times and you need access to additional capital quickly, emergency business finance could be just the answer to put your business back on track for success!

Explore emergency business funding options and ask about eligibility, total cost and expected deposit timing.

Complete our online application and discover how much you can be approved for: Get Started

Compare costs before accepting emergency funding

Look beyond the amount approved

Illustrative example only, not an offer or a quoted rate. Assume no fees are deducted from the amount received.

$24,000Total repayment

$20,000Amount received

$4,000Financing cost

Now check the payment burden: if that $24,000 were repaid in 12 equal weekly payments, each payment would be $2,000. Compare that amount with the cash left after payroll, rent and other obligations.

Upfront deductions reduce the cash you receive. Additional fees increase cost. A factor rate or simple dollar-cost comparison is not APR; repayment timing matters when comparing annualized costs. Request the full written terms.

Ask for the net amount you will receive, total repayment amount, payment frequency, fees and any prepayment terms in writing. Check whether collateral or a personal guarantee is required. Compare the scheduled payments with your expected cash flow after the emergency expense. A fast deposit does not make an unaffordable payment workable. The SBA’s lender comparison guidance also recommends comparing rates, terms and fees.

For a truck repair or delayed freight payment, compare the available products in our trucking business loans guide. A repair, a truck purchase and unpaid freight invoices can call for different financing structures.

What Can You Use An Emergency Business Loan For?

Next, let’s talk about what you can use an emergency business loan for.

Common uses include repairs, payroll, inventory and supplier bills, but permitted uses depend on the product and agreement. Confirm that the expense you need to cover is eligible.

Here are seven examples from Excel Capital’s past work with customers. The amounts and turnaround times reflect those particular cases. Your options and timing may be different. If you need a fast small business loan, we’ll need to review your business and the funding requirements first.

1. A trucking company needing a loan due to a semi-trailer breaking down

One day, a trucking company in Florida suddenly had one of their semi-trailers break down.

They needed the truck repaired by the next day to avoid a serious cash-flow problem.

Fortunately, we were able to provide them with a short-term loan for $55,000 to repair the big rig and get back on the road, minimizing downtime and completely avoiding the potential loss.

2. An accounting firm lost its main administrator three weeks before tax time

Due to tax season, most accounting firms make the majority of their revenue between January and April 15th of a particular year.

Due to the industry’s seasonality, the firm had a revenue slow-down while at the same time trying to prepare to provide their services to clients for the upcoming busy season, most notably hiring and training new employees. This all occurred at the same time they received their main administrator’s notice.

We helped them receive an unsecured line of credit in just 48 hours to assist with the hiring emergency.

3. A general contractor came to Excel in need of funding to pay for materials to complete a house remodeling

Because most general contractors don’t get paid until a job is completed, they often have to pay for building materials for a job out of pocket. This can place a huge burden on cash flow.

We provided this particular contractor with an urgent business loan for $75,000, providing him with the capital to purchase the materials they needed for the current job, as well as additional capital leftover to catch up on other bills and expenses.

4. An Insurance agency needed short-term funding to pay for a tax lien

A Nevada insurance agency needed an insurance agency loan to pay for a $25,000.00 tax lien that was getting close to turning into a garnishment that would freeze all of the assets of the business.

The owner’s tax lien and credit problems made funding harder to find. Excel helped the business secure financing in this case, but those issues can still affect whether you’re approved and what you pay.

We were able to get them a $35,000.00 unsecured business loan in 24 hours. This allowed them to pay the IRS and avoid penalties and interest and avoid a cash flow crunch that could have more severe residual impacts on operations.

5. An auto repair shop’s car lift broke down leaving them with a need of $10,000 to buy and install a new one

Without the lift operating in the shop, mechanics at a Houston repair shop were on pace to lose up to $2,000 per day.

We were able to provide them with a split funding solution for $11,500 within just 24 hours of applying. The lift was installed the same week and business went right back to normal.

6. Michelle Smith, owner of a popular Georgia convenience store encountered a financial hardship due to a severe thunderstorm

Unfortunately, high winds and rain caused bad structural damage to her store. As a result, Michelle had to put all of her existing business capital into repairs and maintenance, thus, resulting in late payments on bills and a lack of inventory purchases.

Not having such a pretty appearance due to the construction, as well as understocked shelves, meant fewer customers, and ultimately less revenue.

After doing some research online, Michelle contacted us to apply for an emergency business loan. We were able to approve her quickly and she got the $75,000 she needed to fix up her shop and restock just three days after initially applying.

7. Paying past-due bills with suppliers in Miami

Getting behind with suppliers is a dangerous catch-22.

You need supply to produce more product to sell, but what do you do when you’re so behind on payments to suppliers that they’ll no longer ship you to make that product in the first place?

When a Miami restaurant contacted us about being delinquent with suppliers, we got them approved for a restaurant business loan and they got the $15,000 line of credit they needed to cover their past-due bills and better manage payments to suppliers moving forward.

Emergency business loans: common questions

Can I get an emergency business loan with bad credit?

Some providers consider businesses whose owners have weaker credit. Cash flow, existing debt and payment history still matter, and a lower score may mean fewer choices or higher costs. Read our bad-credit business loans guide for more detail.

Are emergency business loans available with no credit check?

Do not assume that “fast approval” or “bad credit considered” means no credit check. Ask whether the provider reviews personal or business credit, whether the inquiry is soft or hard, and when it happens. No-credit-check wording is not a guarantee of approval or affordability.

Can a startup qualify for emergency funding?

A new business may have fewer options because some providers require operating history and recurring revenue. Confirm the requirements before applying. An emergency loan should not be treated as a substitute for a viable repayment plan.

How much should I request?

Work out what the urgent expense will cost, then subtract any cash you can safely put toward it. Ask about fees that could reduce the amount you receive. Borrow what you need and can afford to repay, even if you’re offered more.

Is an emergency business fund the same as an emergency loan?

No. An emergency fund is cash the business has saved for unexpected costs. A loan creates a repayment obligation. Once the immediate problem is resolved, consider building a cash reserve to reduce the need for future borrowing.

SBA disaster loans versus urgent business funding

If a declared disaster damaged your business or interrupted sales, check the SBA’s disaster loan programs. Business physical disaster loans can help cover eligible property damage. Economic Injury Disaster Loans can help eligible businesses cover qualifying operating expenses, but they aren’t for repairing physical damage.

You’ll need to check whether your location and situation qualify under a current disaster declaration. Apply and confirm timing directly with the SBA. These programs are separate from private business financing, so don’t count on them for a same-day deposit.

Explore emergency business funding with Excel Capital

At Excel Capital, we know that sometimes the unexpected happens.

Tell us what happened, how much you need and when the bill is due. Our team can help you explore available options and understand the costs, requirements and expected timing.

Let us help you get the funding you need quickly without the hassle:

Compare available funding options and expected funding times: Apply Now

How to Get a Home Based Business Loan: 5 Options

September 29, 2026April 17, 2024 by Maria Khatiashvili

Home based business loans guide with a laptop, construction plans and hard hat in a home office.

Funding for a Home-Based Business

Getting the funding you need for a home-based business can be challenging. Home based business loans can help eligible businesses cover equipment, inventory, payroll and other operating costs without a separate commercial office. Approval depends on the business, the financing product and the provider’s requirements.

Starting a home-based business means sorting out licenses, taxes and day-to-day operations. Finding business capital to start, grow or expand is another step. If you are wondering how to get a loan for a home-based business, understanding what funders look for is a useful place to start.

Many small companies start at home. It is where owners build their customer base and lay the foundation for the business. Money can be tight during those early years.

Aside from getting clients, one of the biggest challenges for business owners is finding financing. Some funders apply stricter requirements to home-based businesses, especially when operating history or collateral is limited. There are still several financing options to consider.

Home-based business funding can take several forms, from equipment financing to a revolving line of credit.

This guide covers five funding options, why approval can be harder and what to prepare before you apply.

Explore funding for your home-based business with Excel Capital: Apply Now

Home-Based Businesses After COVID: A More Common Way to Work

Home-based businesses were common long before the pandemic. The SBA Office of Advocacy’s 2020 Small Business FAQ reports that about 50% of all U.S. businesses were home-based including businesses without employees. That figure comes from older survey data, so it describes the pre-pandemic picture.

Since COVID-19, working from home has become a regular part of business life. Consultants, online sellers and service businesses can manage clients, payments and teams from a home office. For many owners, there is little reason to take on a separate office lease.

U.S. Census Bureau data on working from home illustrate the broader change: 13.8% of U.S. workers usually worked from home in 2023, compared with 5.7% in 2019. These are workforce figures, rather than a count of businesses or loans, but they help explain why working from home feels much more familiar today.

Working from home can cut rent, commuting and office costs, leaving more money for equipment, marketing and staff. Even with lower overhead, you may still need working capital when bills come due before customers pay.

Why Many Businesses Operate From Home, Especially Contractors

Construction is a good example. A general contractor, roofer, electrician or remodeler may handle estimates, scheduling and bookkeeping from a home office while crews work at customer job sites. Paying for a separate office may add little value when customers rarely visit it.

A contractor can run the office from home while owning tools and equipment, using a storage yard, employing a crew and working on signed projects. The address alone tells a funder very little about the size or stability of that business. Our guide to construction business loans explains financing needs such as materials, payroll and equipment while waiting for project payments.

The same logic applies to mobile service providers, online retailers, bookkeepers and creative agencies: the work may take place at clients’ properties, online or across a remote team. A funder needs to understand how that business operates and earns revenue.

Still deciding what to launch? Explore our home-based business ideas for options that fit your skills and experience.

Why Can It Be Harder for a Home-Based Business to Get Funding?

Perceived flight risk and business continuity

A funder wants to know that your business will still be operating when payments come due. Without a commercial lease, storefront or fixed business location, some funders may worry that it would be easier to shut down, move or become difficult to contact. This perceived “flight risk” can make them more cautious about an application.

A commercial lease is only one sign of commitment. Years in business, repeat customers, signed contracts, consistent deposits and an address the funder can verify can also show that you have an established business. Closing or moving a business does not, by itself, cancel its debts, contracts or applicable personal guarantees.

Fewer fixtures and other assets available as collateral

Some home-based businesses have few or no business-owned fixtures compared with a shop, restaurant or commercial workshop. Fixtures are goods that attach to real property so closely that applicable law treats them as part of that property. A laptop, portable tool or movable desk is generally equipment or furniture, rather than a fixture.

Fixtures can be part of the collateral securing business financing. Depending on the security agreement and applicable law, other collateral may include equipment, inventory and accounts receivable. A UCC filing gives public notice of a claimed security interest; filing alone does not create collateral or make low-value assets more valuable. If there are few assets a funder could recover after a default, qualifying for financing that relies on collateral may be harder.

The UCC’s rules for security interests in fixtures include special priority rules, and a creditor may need a fixture filing. The actual collateral depends on the agreement, the borrower’s rights in the assets and state law. A business address at home does not automatically put the house or the owner’s household fixtures under a business UCC lien.

Harder-to-verify revenue and repayment capacity

If personal and business transactions run through the same account, it can be hard to tell how much the business earns. Incomplete records or dependence on one customer can raise more questions. Clear bank statements, current financial reports and a practical repayment plan help the funder understand what is happening in your business.

What helps: Explain why working from home fits your industry, where the work actually happens, and how the business earns steady revenue. Support that explanation with licenses, insurance, customer contracts, invoices, bank statements and an accurate list of business assets and existing liens.

How to Fund a Home-Based Business: 5 Financing Options

When comparing home based business loans, start with what you need to finance. Equipment purchases, day-to-day expenses and gaps between customer payments may call for different products.

Five home-based business funding options: equipment financing, merchant cash advance, short-term loan, unsecured business loans and business line of credit.

1. Equipment Financing

Equipment financing helps business owners purchase eligible equipment needed to run the business.

The loan amount is dependent upon the type and cost of equipment needed. Repayment terms depend on the provider, the equipment’s expected useful life and whether it is used or new. The equipment itself commonly serves as collateral.

2. Split Funding / Merchant Cash Advance

Split funding is a form of merchant cash advance that works on a “pay as you earn” model.

Providers generally structure a merchant cash advance as a purchase of future receivables rather than a loan. In a card-split arrangement, an agreed percentage of your business’ credit and debit card sales goes toward the purchased amount.

On days with higher card sales, the provider collects a larger remittance. When card sales drop, you remit less. Other revenue-based advances collect through ACH debits and may include reconciliation provisions. Review the total cost, collection method, adjustment rights and any guarantees in the agreement.

3. Short-term Loan

Short-term business loans help owners cover immediate expenses and manage cash flow gaps.

Some providers require less paperwork than a traditional bank loan, and you can use the funds for a range of business purposes. Permitted uses depend on the agreement.

Common uses of short-term business loans are inventory purchases, new hires and employee training, equipment repairs, and filling gaps between accounts payable and receivable. A shorter repayment schedule can mean larger payments and higher costs. Repayment may be daily, weekly or monthly, depending on the lender and agreement.

Traditional term loans also have a fixed repayment term, but the interest rate may be fixed or variable. Payments are often monthly. Whether payments build business credit depends on the lender’s reporting, and any prepayment penalty depends on the agreement.

4. Unsecured Business Loans

Unsecured business loans can help home-based owners who do not have specific assets to pledge as collateral. Lenders review factors such as revenue, cash flow, credit and operating history. Product terms vary, and some providers may still require a personal guarantee or blanket lien on business assets.

Depending on the agreement, you can use the funds for inventory, payroll, marketing, equipment or other business expenses. Compare the total cost and payment schedule with the cash your business expects to collect.

Some lenders collect repayments through ACH, which means automatic debits from your business bank account. ACH describes the payment method. Your agreement determines whether payments fall daily, weekly or monthly.

Credit score, revenue, time in business and collateral requirements vary by provider. Some products accept borrowers with challenged credit or do not require a specific asset pledge, but a personal guarantee or a lien on business assets may still apply. Review the agreement before accepting an offer.

5. Business Line of Credit

A business line of credit, also known as a “LOC,” gives business owners access to a credit limit they can draw on as needed. On a revolving line, repaid principal generally becomes available again, subject to the agreement. Lenders generally charge interest on the amount you draw and may also charge fees.

There are two types of Business Lines of Credit:

1. Unsecured Business Line of Credit

Unsecured business lines of credit do not require you to pledge specific assets as collateral, though product descriptions vary. Check whether the lender requires a blanket business lien or personal guarantee.

This can be appealing to home-based business owners with limited fixed assets. Credit requirements vary, and lenders may also review revenue, cash flow and time in business.

In addition, they tend to be smaller with higher interest rates.

2. Secured Business Line of Credit

A secured business line of credit requires business owners to put up assets as collateral in order to obtain the loan.

Depending on the lender, collateral may include inventory, accounts receivable, equipment or other assets. If you default, the lender may enforce its rights against the pledged collateral under the agreement and applicable law.

Both secured and unsecured business lines of credit will require your business to be in good standing.

Lenders typically prefer to work with businesses that are well-established and in good financial standing, thus demonstrating the ability to pay back the loan. Your lender may request financial documents to assess your ability to repay.

Explore a business line of credit for your home-based business with Excel Capital: Apply Now

Can a Home-Based Business Get an SBA Loan or Microloan?

A home-based business may be eligible for SBA-backed financing if it meets the program’s and lender’s requirements. The SBA’s 7(a) eligibility guidance emphasizes an eligible operating business, creditworthiness and reasonable assurance of repayment. A home address alone does not establish eligibility. See our SBA loan guide for an overview.

For smaller needs, including some startups, the SBA Microloan program provides loans of up to $50,000 through approved nonprofit intermediaries. Each intermediary makes its own credit decisions and sets terms. This can be worth exploring if your home-based business does not yet have the operating history needed for other financing.

How to Apply for Home Based Business Loans

One of the benefits that come with alternative lending is a fast application and approval process.

Applications for home based business loans vary by provider. Some alternative lenders offer streamlined applications, but funding speed and paperwork depend on the product and completeness of your application.

Your lender reviews the initial paperwork and may ask for additional documents before making a funding decision.

Prepare these common business documents before you apply:

One-page application
Voided check (for your business account)
Copies of identification for all owners
Proof of ownership: Most recently filed tax return, corporate bylaws or LLC articles of organization
Proof of EIN, such as an IRS EIN confirmation letter; see our Form SS-4 and EIN documentation guide
Recent business bank statements (the number of months varies by provider)
Aging AR report if you invoice customers on net-30 to net-90 terms

Your lender may not need every document on this list. Having current records ready can help you answer questions quickly and avoid delays.

Help the funder verify your home-based business

Also be ready to explain where you perform your work and provide current licenses, insurance, proof of your operating address and customer contracts or invoices. Contractors can include a project backlog and payment schedule. Keep personal and business finances separate, disclose existing financing and liens, and prepare a current profit and loss statement. If customers pay after you complete a job, an accounts receivable aging report can help explain the gap between billed revenue and collected cash.

Home-Based Business Funding with Excel Capital

When comparing funding for a home-based business, look at the total cost, payment schedule and any collateral or personal guarantee requirements.

At Excel Capital, we help business owners explore financing options based on their revenue, operating history and funding needs.

The application process is quick. If approved, some products may fund in as little as 24 to 48 hours after required documentation and verification are complete; timing and availability vary.

Click below to start your application:

Start your application for home-based business funding: Get Started

Construction Business Loans: Get the Funding Your Business Needs Today

September 28, 2026April 17, 2024 by Simon Reed

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Construction Business Loans: Everything You Need to Know

As a general contractor, you know that obtaining construction business loans is important to running a construction business and operating in a fluid fashion.

Full payment for a project does not typically come until at least 90 days after the project start date, but construction costs don’t wait around, which makes construction loans a necessity to function.

When a new job is taken on you receive a small down payment upfront as well as progress payments or tiered payments as the job hits certain milestones. This delayed payment structure makes obtaining construction business loans crucial to maintain positive cash flow.

Because of this structure, contractors need to come out of pocket for many expenses such as:

Payroll
Material Costs
Insurance
Equipment

Contractors know that obtaining funding is the solution. But what do you do when you can’t be approved– or can’t wait– for a traditional bank loan?

Why Take Out a Small Business Loan Instead of Going to Your Local Bank or Traditional Lender?

It’s all about timing.

Most banks and traditional lenders (such as SBA loans) take way too long on loan approvals. And even if you try to avoid the timing issue by planning when you need it, many contractors that apply for construction financing with their local bank find that they can’t be approved without collateral.

Banks use traditional underwriting practices, which places the commercial construction industry in a high-risk bracket. That means you’ll need to have something to put down to secure the loan otherwise you’re not likely to be approved.

However, this needlessly puts you at additional risk on each and every job. Not to mention, puts you under extra stress that you don’t need.

Alternative lending offers a way around these strict requirements and gives business owners a path forward.

At excel we’ve worked with hundreds of construction business owners to offer unsecured loan options that give you the funding you need while affording the flexibility to get approved without having to put down hefty collateral.

Short application, get approved in as little as 24-48 hours: Apply Now

Types of Construction Loans: Alternative Loan Options

So, what are your options for construction loans?

Well, you’ve got a lot. And it all comes down to what you need the funds for and what type of loan fits your business and the types of construction projects you take on.

As mentioned above, no matter what you need funding for, there are several working capital loan options available. However, some construction loan options are designed for specific needs while others are more general.

Let’s break each down individually to give you a better idea of which might be a good fit for you:

1. Equipment Financing

Equipment financing is used to help you purchase whatever equipment your business needs to run smoothly.

The loan amount is dependent upon the type of equipment the borrower needs, as the repayment term is usually as long as the expected life of the piece of equipment.

2. Invoice Factoring

Invoice factoring is used for short-term cash flow issues, especially when your business doesn’t qualify for a traditional bank loan or any other alternative solution. That’s because it depends less on your credit score and more on other business factors such as your accounts receivable.

The lender will factor your business’ customer’s invoices to match your working capital needs.

This type of program is rarely used for contractors since progress payments cannot be factored. Factoring companies only use invoices for work complete. In the construction business, it typically happens this way.

3. Unsecured Business Loans

Unsecured business loans were designed for business owners to enjoy the benefits of a merchant cash advance who do not accept credit cards at there business. Most contractors do not receive credit card payments – and even if they do its typically a very small percentage of the annual gross sales.

This works as a purchase of future sale at a discount that is converted into a set payment. This payment is remitted via ACH usually daily, weekly or monthly.

This allows you as the borrower to get construction loans without any collateral, just your sales. It also requires a lower credit score compared to traditional lending for the same reason.

4. Merchant Cash Advance

For those of you who accept credit cards at your business, split funding, or a merchant cash advance, is a construction business loan based on a purchase of your future credit card sales at a discount.

Payments are collected at a set percentage of your credit card sales, which is nice because that means when business is down– so are your payments. And when there is no business– no percentage.

For that reason, this method really helps during a particularly volatile market or rough patch in your construction business.

It also doesn’t have a stringent a credit score requirement due to factoring in your credit card sales more than anything else.

5. Term Loans

Our fourth construction business loan option, term loans have a set repayment schedule and interest rate and mature between 1 to 10 years depending on the term of the loan. Most commonly being short-term loans which offer a quick lump sum of cash with a short repayment date.

However, keep in mind that a short-term loan, or any other term loan, requires financial statements as well as 2 years of business history and one filed tax return.

6. Business Lines of Credit

A business line of credit is a rotating line of credit which you can dip into whenever the business needs it most.

Similar to a credit card, so long as you pay off your balance you can continue to use that line of credit continuously. Interest is then only paid off the amount that is used.

7. Asset-based Lending

Lastly, with asset-based lending, the assets of a business, such as inventory, accounts receivable, and other balance-sheet assets are used as collateral.

Plus, because this financing type is secured with collateral, interest rates tend to be low and credit score requirements are lower as well. Having applicable collateral also makes an asset-based loan easier to obtain.

Complete our short application and get approved fast:Apply Now

How to Get a Construction Loan: How Do Construction Loans Work?

Ultimately, it’s up to you to do your research and find out what your best small business loan options are.

It’s your business and no one is going to look out for it like you will, so take the necessary steps to educate yourself and then take action to obtain the funding your business needs, whether that’s to keep things afloat or to take things to a whole new level.

Whatever the case, don’t let a lack of funding hold your business back from realizing it’s potential.

To apply for a construction business loan with Excel Capital, only four things are required:

Four months of recent business bank statements
Four months of business credit card processing statements
A one-page application
And just a few minutes to get started

We’ve made the process of getting a small business loan simple and straightforward so you can get back to what is most important– running your business.

Once everything is received, you can be presented with an approval, your loan terms, and funded in as little as one business day– that’s right, just 24 hours.

Get the funding your contracting business needs by completing our short, 2-minute application.

Excel Capital Helps Contractor Marty Secure a Loan: A Case Study

While the construction business is one of the oldest, most flourishing, and most competitive industries around, there comes a time when many of its business owners need access to working capital.

The cost of equipment, materials, payroll, and slow turn-around rates trump the cash flow coming in, and many construction company owners find themselves weighed down by bills and overhead costs.

Since the great recession of 2008, a traditional bank loan is no longer the go-to solution when it comes to acquiring capital.

That old-school way of doing things sometimes ends in heartbreak due to waiting weeks just to receive an answer. That’s where the alternative financing industry comes into play.

With financing solutions such as the ever-popular merchant cash advance, ACH loan, asset based loans, equipment financing, and more, access to working capital is easier than ever.

Funding Needed Fast

Recently, Marty, a construction company owner from Georgia reached out to the Excel Capital team.

Marty was in a crunch. He needed funds– and he needed them fast.

With a handful of projects on his plate, along with receivables due on a large ongoing project not being paid on schedule, Marty asked us for working capital to be used towards the purchase of materials, equipment, licensing, and payroll.

Marty’s workers and office employees needed to be paid and materials needed to be purchased. So, waiting for payouts was not an option.

In order to get things back on track, as well as to generate new growth, Marty asked our sales rep, Jordan for help in securing an ACH loan. A short term funding product, an ACH loan is paid on a daily or weekly basis by direct ACH debits.

Marty had close to $200,000 tied up in projects which wouldn’t come in for at least thirty days, plus roughly $150,000 in retainage for completed contracts. However, that was going to be payed out over six months.

He also had both a $2 million and a $1.5 million contract on the table respectively (both carrying a 20% gross profit), but those were not set in stone.

Marty’s company had no time to wait with other projects lined up and needing to be completed soon. However, they couldn’t be completed unless he had the means to hire more workers and purchase new machines to keep up with the timelines in place.

Marty Joins Forces with Excel Capital

To the Average Joe, these type of accounts receivable amounts seem amazing, but in the construction business, we know this revenue doesn’t always reflect the tangible finances.

Most, if not all, of the money is put back into the company to complete ongoing projects.

Whether Marty could wait until his own payday or not– he needed working capital now.

After supplying us with bank statements, a business lease, his driver’s license, and a few other minimal stipulations, we were able to get Marty $80,000 in working capital in a matter of only two days!

The daily repayment amount was only $400, an ACH automatically debited (so Marty wouldn’t have to worry about making any large monthly payments, he could focus on his projects at hand) which would happen over the course of 12 months.

It was as simple as that! No hassles or phone calls from banks, just fast funding, easy communication, and transparent terms. And, most importantly, peace of mind.

Get a General or Commercial Construction Loan with Excel Capital

At Excel Capital, we know that getting the funding you need is critical to completing bigger and bigger jobs and keeping your business going.

Reach out to the Excel team to find out if you qualify for a construction loan as well as to discover your options.

Apply for a construction business loan from Excel Capital: Get Started

7 Best Small Business Checking Accounts of 2026 (+ How to Choose a Business Bank Account)

August 10, 2026April 17, 2024 by Nathan Abadi

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Finding the best small business checking account that fits your needs may seem like a small step.

However, given how often you’ll use it, it’s a critical step in establishing a smooth financial system within your business.

Which bank you choose is important for more than just that, however.

Depending on which bank you pick, you may end up going to them for a business line of credit, loan, or other financial product.

Your business checking account can have a big impact on several aspects of your business, including everything from ATM Conveniences to your monthly transaction limit and customer service experience.

For that reason, below we’ve reviewed the top small business checking account options for 2024 to find the best of the best– so you don’t have to.

The 7 Best Small Business Checking Accounts of 2024

Our 7 best small business checking accounts for 2024 are:

Chase – Great introductory bonuses (change over time) and low account fees.
Capital One – Unlimited transactions, low monthly fees
Bank of America – Frequent introductory bonuses, lots of physical locations
U.S. Bank – Good for new small businesses just getting started
Wells Fargo – Good customer service, account upgrade flexibility
Navy Federal – Low monthly fees, great for military
BBVA Compass – Low monthly fees, large extended ATM network

All of the below small business checking accounts have the same core features, but there are notable differences between each depending on what you’re looking for.

To discern the best business checking accounts, we looked at all of these features to not only find what we consider the best options but also include a useful variety of accounts that are stronger in some features rather than others.

Methodology: How We Decided on the Top Business Bank Account Candidates

To decide which small business checking accounts were the best, we took into account a variety of factors to make the most fair and informed decision possible.

Factors we considered when evaluating the best business checking accounts were:

Fees and fee structure
Availability of ATMs and physical banking locations
Introductory bonuses
Account change/upgrade flexibility
Special or additional account features (various, those which aren’t considered common)

While each factor was taken into account, some were weighed more heavily than others (fees and fee structure being at the top, for instance).

Having said that, here are our 7 best small business checking accounts of 2024.

1. Chase

As one of the largest banks in the United States if you already bank with Chase the simple fact of convenience could be a big reason to consider working with them.

However, aside from that it turns out that Chase is one of, if not the best, all-around option for a business checking account.

Pros

Large banking network: More than 5,000 branches and 16,000+ ATMs.
Just $25 to open an account
$0 in fees with just $500 monthly deposits or a daily balance of $1,500
$200 introductory bonus (not always available)

Cons

100 transaction limit means larger businesses or those with a high transaction quantity won’t be a good fit.
Most Chase branches exist in larger markets such as major cities, so while their network is big you might still want to check your local neighborhood if live in a smaller market.

Why choose Chase?

If you have a low number of monthly transactions (<100), Chase’s low fees and large banking network is perfect for you.

To open a small business checking account with Chase, click here.

2. Capital One

Known mostly as a credit provider, Capital One is also the largest of the mostly “digital banking” options currently available, although it does have branches in some locations.

Capital One offers the best fee structure of all major business checking accounts available.

Pros

Large ATM network: Nearly 40,000 ATMs nationwide means you have access to one of the largest ATM networks available.
Capital One’s Spark Business Checking account offers an introductory offer of $250 for maintaining an average balance of $25,000 or $1,000 for maintaining an average balance of $100,000, both over a 6-month period.
No monthly fee if you maintain a balance of $2,000
No transaction fees
Unlimited monthly transactions

Cons

Not many branches: Capital One banking has just ~700 branches, so the chance of having a local branch is very slim.
Only 2,000 of those 40,000 ATMs allow deposits. This means that, combined with their low branch count, it may be difficult or impossible for you to make easy cash deposits.

Why choose Capital One?

If you hate bank fees and cash deposits or branch visits aren’t high on your list of importance, Capital One is a great choice.

To open a small business checking account with Capital One, click here.

3. Bank of America

Like Chase, Bank of America is a common personal banking option, so it might be a good fit for you if you already bank with them.

Pros

Large banking network: More than 5,000 branches and 16,000 ATMs
More varied introductory offers: $350 for opening a Business Fundamentals account and meeting certain requirements, $100 bonus by depositing $1,000 within the first 60 days of opening a business checking account, $50 bonus for paying two different bills through bill pay, and an additional $200 if you’re approved for a BoA business credit card
Lots of ways to wave the monthly fee: 1) spending $250 towards new purchases with your debit card 2) maintaining an average monthly balance of $5,000, average daily balance of $3,000, or combined $15,000 average monthly balance between all your linked Bank of America accounts.

Cons

Higher fees
Harder to wave monthly fee

Why choose Bank of America?

The main reason to go with Bank of America is convenience as BofA doesn’t really offer anything unique compared with other business checking accounts.

However, being the largest network of branches in the U.S., if convenience is important to you it might be your best option.

To open a small business checking account with Bank of America, click here.

4. U.S. Bank

While smaller than both Chase and BofA, U.S. Bank still has a fairly large network and some bright points for business owners looking for a quality checking account.

Pros

Large banking network: Smaller than both Chase and BofA, U.S. Bank still boasts more than 3,000 branches and over 5,000 ATMs nationwide.
No monthly fees with U.S. Bank Silver business checking account
No cash deposit fee on the first $2,500 deposited each month
Virtually no ATM fees (even out of network)

Cons

Free accounts have their monthly activity restricted, so if you have a lot of transactions per month this probably isn’t the bank for you (or you’ll need to move up from the free Silver checking account).

Why choose U.S. Bank?

U.S. Bank rivals Capital One’s little to no fee structure, however, they also boast a large network of branches and ATMs which makes them the perfect combo if you have a local branch and/or ATM in your area.

To open an account with U.S. Bank, click here.

5. Wells Fargo

Another one of the largest banks in the United States, like Chase and Bank of America, if you already bank with Wells Fargo that could be a big deciding factor.

Pros

Largest branch network: Wells Fargo has the largest number of physical branches in the nation at over 6,300 (and over 13,000 available ATMs).
Convenient upgrades and lots of great features and investment options for growing business owners
$14 monthly fee can easily be waived by qualifying for one of more than half a dozen factors

Cons

Not as competitive a fee structure as Chase and other business checking options

Why choose Wells Fargo

If you’re quickly growing and you want a bank who will make it easy to move up to a better account and qualify for more powerful features seamlessly, Wells Fargo is a great option.

To open an account with Wells Fargo, click here.

6. Navy Federal

Navy Federal is an ideal option for anyone connected with the U.S. Armed Forces, including:

Army
Navy
Marines
Air Force
Coast Guard
Immediate family of branch member, and
Veterans of all branches

If you qualify as any of the above, Navy Federal offers several perks which you can’t obtain from any other business checking option.

Pros

No monthly fee
No transaction fees
Unlimited transactions

Cons

You can only obtain a Navy Federal business checking account if you qualify as either a member of one of the above U.S. Armed Forces or are an immediate family member of a member.

Why choose Navy Federal?

Navy Federal is the ideal choice for Armed Forces members. If you’re a member, or you’re an immediate family member of a member, Navy Federal is very hard to beat.

To open an account with Navy Federal, click here.

7. BBVA Compass

BBVA’s unique business checking features make it stand out from other options on this list for several reasons, but it’s low number of physical branches could be a breaking point for some business owners.

Pros

No monthly fee
Free access to over 40,000 ATMs

Cons

Only 650 branches
Transaction fees are limited to just 2 transactions for free accounts

Why choose BBVA Compass?

If you’re lucky enough to have a BBVA Compass branch in your area (or don’t depend on having a physical branch), we consider them one of best business checking accounts because they have low (or no) monthly fees and access to a huge number of ATMs for free.

To open an account with BBVA Compass, click here.

Final note on small business banking:

It’s important to know that all banks are not created equal and many are better in certain situations than others.

Whether you’re looking for a relationship to secure a business line of credit or a one-time small business loan, or simply a dependable business checking account with high-level convenience, each will likely have its unique niche.

Open a Business Line of Credit with Excel Capital

If you’re in need of small business funding, Excel is here to help.

Apply for a business line of credit with Excel Capital today to see what you could be approved for:

Open a business line of credit with Excel Capital today: Apply Now

Fast Small Business Loans: The Best Options for 2026

August 17, 2026April 17, 2024 by Nathan Abadi

FAST SMALL BUSINESS LOANS FEATURED IMAGE

As a business owner, you know that a big part of your job description is putting out fires.

That could be:

A piece of equipment suddenly breaking
Damaged merchandise due a shipping mishap
Or an employee that just quit unexpectedly (whom you now need to pay to replace)

Sometimes, you’re put in a spot where no matter how hard you work you can’t fix the issue alone. You need extra funds and you need them fast.

Fortunately, thanks to alternative lending, fast small business loans are now a thing– and they can help with those very issues (and more).

The days of having one and only one lender you could go to (the bank) are long over.

No more waiting around for a month for your funding to come in. Or, worse, never being approved in the first place because your credit isn’t good enough.

Excel offers same day loan options that are easy to apply for. With one short online application, you could be funding in as little as 24-48 hours:

Apply for a fast business loan with Excel Capital: Apply Now

With that said, in this guide, we’ll break down the best fast business loan options as well as everything you need to know about qualification and approval. Including:

What Is a Fast Business Loan?

The term ‘fast small business loan’ simply refers to any type of small business funding that can be obtained quickly (typically, this refers to 24-48 hours).

Each fast funding option is a little different from the next, and one may be better for you and your unique situation compared to the others.

So, let’s break down each major type of fast business loan so you can get a better idea of which may be a fit for you.

4 Types of Fast Small Business Loans

In the past, your only option was to walk into the bank and hope they’d approve you for a loan.

However, nowadays, thanks to alternative lenders you now have a diverse collection of options available to you no matter what your need.

Here are several fast small business loan options:

1. Unsecured business loans

Apply for an unsecured business loan with Excel Capital: Apply Now

Most fast unsecured business loan does not require hard collateral, such as property or savings, hence why it’s an unsecured loan (as in lenders take nothing to secure the loan’s repayment).

However, it’s important to keep in mind that because the loan isn’t secured, interest rates tend to be higher.

Learn more about unsecured business loans.

2. Business lines of credit

Apply for an unsecured business line of credit with Excel Capital: Apply Now

Quick business lines of credit offer a unique option if you need funds quickly.

As opposed to a single loan, a business line of credit– once approved– gives you recurring access to credit whenever you need it.

If your business is at all seasonal, this can be the perfect option to solve your short-term cash needs on a more consistent basis than getting a new loan every season.

Lines of credit don’t require collateral, however, because they’re not secured your credit score usually needs to be at least 540+.

Learn more about business lines of credit.

3. Split funding / Merchant cash advance

Apply for a merchant cash advance with Excel Capital: Apply Now

Split, funding, or a merchant cash advance, is a lump sum which is then paid back by deducting a percentage of your daily credit card sales.

The advantage of split funding is in the nature of the repayment plan. When business is good, repaying the loan is easy.

When business is down, the percentage-based nature of the repayment amount means your daily payment drops considerably and becomes easier to manage during those slow times.

Learn more about merchant cash advances.

4. Term loans

Apply for a term loan with Excel Capital: Apply Now

A term loan, either a short-term or medium-term loan, is straightforward: they’re designed to fill a need based on their description, a short-term loan taking care of a short-term need and so on.

Term loans are perfect when you need one lump sum to take care of a single purchase quickly.

Learn more about term loans.

How to Get Approved for a Fast Business Loan

So, you know the diverse range of uses for a fast working capital loans and you know your numerous options.

But how can you give yourself the best chance for approval?

First, let’s talk about what lenders look for when reviewing a loan application so you can be well-prepared when submitting your application.

Part I: What do lenders look for?

Here are the five primary factors that lenders look for when reviewing a loan application:

1. Credit score

As opposed to traditional banks, alternative lenders don’t base approval strictly on your credit score.

Being approved for a business loan was once much more difficult. Even now, traditional lenders such as banks use an old system that only takes your credit score into consideration.

However, having said that, there are some important items which you need to consider with regards to your credit:

Bankruptcies
Foreclosures
Tax liens
Negative items (NSF and overdraft) in your bank statements

The above factors, while not disqualifying, will show negatively with lenders.

Keep them in mind as you’re putting your things in order and take care of whatever you can before you apply (if possible). We do offer fast business loans bad credit and the rates may vary.

2. Annual revenue

How is your business’ revenue? Up year-to-year or has it been more of a rollercoaster?

Your annual revenue is an important sign of a healthy business, so it’s one of the more important factors to keep in mind.

3. Current debt obligation

Current debt obligation is important to lenders because they want to know how soon you’ll pay off the loan– and how likely they are to get it back without a fuss.

Here are some things to keep in mind:

Do you already have a loan you’re currently paying off?
Is there collateral involved?
Have you had a loan in the past? Did you pay it on time?
What percentage of gross monthly revenue is being paid toward current loans
Have you had payment issues with other lenders?

Most importantly, lenders want to know that they’re not “second position”, meaning they’re second in place to be paid back.

4. Profitability

Beyond just revenue, lenders want to see how much your business is actually “bringing home” after you pay for all inventory costs, fees, marketing, payroll, and other expenses.

The reality is, you might have a large number of regular sales and a great looking annual revenue. However, if your profit margin is low and you’re struggling to make your bills, that doesn’t look good in the eyes of a lender.

It’s important to keep in mind, however, that most business loan types under $100,000 do not require a review of your profitability or financial statements.

5. Cash flow

Similar to annual revenue and profitability, cash flow shows what is coming into the business.

However, far more than just money coming in, cash flow is a more exact indicator of how liquid you are and how much extra cash you have on hand.

Lenders want to see that you not only have money coming in but that you’re being good with that money and have the habit of retaining extra funds for handling unexpected drops in business that could threaten your ability to pay the loan back.

Most lenders look at your average daily balance, any NSF or Overdraft items in your bank accounts and your ability to keep your expenses in order

Part 2: What do I need to qualify for fast business financing?

Now that you know what lenders look for when reviewing your application and what you need to get in order to increase your chances of being approved, it’s time to talk about what you need to qualify.

For the most part, this all depends on the type of loan you decide is best for you. Two loans may require different paperwork and minimum qualifications compared to one another.

If that all sounds confusing, don’t let it overwhelm you.

When you submit your application, we’ll guide you through the entire process step-by-step so you know what is required to qualify.

Having said that, there are some universal minimum qualifications to keep in mind.

For most loan types, these three basic requirements exist:

In business for 6+ months
$10,000+ gross monthly revenue (for unsecured business loans)
A business bank account

our fast business capital options do not require:

A minimum credit score, or
Collateral

Now that we’ve covered the basic qualification requirements, let’s talk about the documents that will be required to apply.

Part 3: What documents are needed to apply for a fast business loan?

WHAT DOCUMENTS DO I NEED TO APPLY FOR AN ALTERNATIVE BUSINESS LOAN?

Now that we have the basics covered for what you need in place to get approved what you’ll need to apply, let’s get your documents in order.

Lucky for you, the documentation requirements for alternative lenders loans is simple and straightforward compared to traditional bank loans.

First, a very short, simple application is required to get your information in the system and get you started.

For that, all you’ll need is your last 3 months of business bank statements.

Once you’ve gotten that out of the way, it’s important to keep in mind that one or more of these additional documents may be required after submitting your application:

Copy of photo identification (all owners)
Business license
Voided check
Proof of ownership
Property lease or landlord contact information along with last 3 month’s rent checks
Last filed Tax Return and financial statements may be requested for funding over 150k

Try to have as many of these documents on hand before you apply so you can streamline the process as much as possible to reduce the time it takes to get an approval.

With that in mind, exactly how long does it take to get approved and have funds deposited into your account?

How Long Does It Take to Get Approved for a Fast Business Loan?

If you’re reading this, chances are you don’t just need a business loan– you need it fast.

Clearly, time is of the essence. So, exactly how long does it take to get approved?

Approval ultimately depends on how quickly you can provide the documents requested by the lender, as mentioned a moment ago.

However, in general, approval takes just 24-48 hours from the moment you submit your application.

And, once approved, it takes just 1-2 more days for the funds to be received into the account of your choice.

To see what you qualify for, simply complete our short one-page application by clicking here.

It’s never been easier to get the funds your business needs, whether it’s to buy new equipment, make new hires, pay bills, or expand into a new location.

When to Get a Fast Business Loan: 5 Reasons

There are countless reasons to apply for a small business loan, from business growth to cash flow for survival through a tough season.

As the applications for that funding continue to expand amid a quickly changing world economy and a growing diversity of alternative funding and loan programs become available, financing is becoming a more critical element to the success of every small business.

Fortunately, as technology adapts to the rising demands of small business owners, getting a small business loan is easier than ever.

As a result, you now have the ability to get approved and funded in less than 30 minutes. Talk about fast.

It’s no surprise that 73% of small firms have received some type of business financing in the last 12 months according to the SBA.

Without proper funding, most businesses can’t keep up with the need for a consistent flow of cash to maintain business growth, especially during rough times.

But what exactly can you use this type of new, alternative financing for? Surely, a quick small business loan has limitations?

Fortunately, the only limitation is your imagination, as alternative financing solutions now offer fast small business loans that can be used for anything your business needs.

If you’re looking for a few creative ideas as to how a little extra funding can help your business grow, look no further.

Here are the top 5 most common uses for quick business loans:

1. Unforeseen Business Emergencies

Over 30% of our applicants who are requesting a fast business financing need the capital for a curveball that was thrown at their business.

What this event exactly is varies widely by case but many requests are related to vehicle and equipment breakdowns or upgrades.

Unfortunately, most banks take between 30-60 days after all the paperwork has been received according to businessmoneytoday.com.

Clearly, waiting that long with a wonky oven if you’re a restaurant or a broken-down delivery van can be devastating to a business’s immediate cash flow.

2. Distributor or wholesaler flash sale

If you’re a retail or e-commerce business, you’ve likely offered a flash sale– a special deal for bulk purchases or simply a deep discount– at one point or another to great success.

However, with a limited amount of time available to apply for extra capital through traditional sources, a business owner is typically limited to whatever cash or inventory they have on hand to run said sale.

However, with a quick small business loan to give your business the funds it needs to run such a sale, this type of purchasing power can easily double or triple a business’ bottom line without hurting your cash flow or inventory.

3. Business debt consolidation

Businesses typically have a variety of different types of debt on their balance sheet.

This varies from credit card debt to secured debt that has balloon payments attached to it.

We see many businesses apply for quick business funding when the time frame to pay off debt is running short and they need a more manageable amount of time to repay their outstanding liabilities.

4. Hiring a new employee

During times of growth, a business often isn’t quite in a position to make additional hires, with cash flow not yet having caught up to the increased business.

So, you’re posed with a problem: stunt your growth to maintain your balance sheet or overstretch yourself and risk running behind so you can push forward.

But if adding a new employee can allow you to grow your business, why wait? Growth is rarely easy, but if you’ve got the cash you need to invest in that growth it makes the process so much simpler.

5. Investing in marketing

As a business owner, you know that marketing is one of the most important aspects of running a business.

How else do you expect to get customers to know about your special product or service?

But marketing isn’t cheap, so coming up with the cash to grow your business before you actually have it appears to be a catch 22.

According to Entrepreneur.com companies under 5 years in business should invest between 6-12% of their revenue in marketing.

If you’re not investing enough into marketing, it’s likely because you lack the cash to invest in the first place. And that’s exactly the kind of problem a quick small business loan can help you solve.

Steps to Follow When Applying for Quick Business Loans

Now that we’ve covered what you need to know to give yourself the best chance of being approved for an easy small business loan, let’s talk about the steps to follow when applying.

Follow these steps to apply for quick business funding:

1. Identify Your Business’ Needs

First things first, why does your business need a loan in the first place?

Sit down with your core staff members, financial advisors, or simply yourself to determine your business’ needs and how a quick business loan could help.

Do you need to purchase inventory, hire additional staff, catch up on bills?

Having a plan of execution once the loan is acquired is essential for success, as well as a plan for paying the loan back.

2. Do the Due Diligence

You may hear the phrase, “do the due diligence” a lot when researching quick business loans.

In simpler terms, this means doing the necessary research before applying and accepting an offer with a lender.

There are thousands of lenders and brokers out there – traditional and alternative.

Don’t take everything at face value. Learn as much as you can about each lender you are interested in, compare pricing, read reviews, ask questions, and follow your gut if something just doesn’t seem right.

You have the right to protect yourself and your business.

The last thing you want to do is put your business in more of a financial bind or have setbacks.

Research and knowledge are key. Do your due diligence.

3. Choose the Best Quick small Business Loans Option

Maybe you did this when identifying why your business needs a quick business loan, but it’s a good idea to confirm again the type of loan product your business truly needs.

Could your business benefit from an SBA Loan, Term Loan, Unsecured business loan, or something else?

Speak with your chosen lender to go over all of your options and get a better understanding of how everything works.

All lenders have different business loan qualification guidelines.

Depending on your business’ financial standing the amount of money you are looking to obtain, the documentation needed to be presented with an approval will vary.

It is a good idea to at least have your last six months of business bank and credit card processing statements available, as well as additional financial documents like P&L and Balance Sheets and tax returns easily accessible.

Apply for a Fast Business Loan with Excel Capital

Excel Capital makes applying for a fast business loan quick and easy.

Say goodbye to the convoluted applications and long approval times of banks or even the stringent credit requirements of many major lenders.

You could be approved in as little as 24-48 hours and, once approved, funds are typically issued within another 24-48 hours.

Get the capital your business needs– fast. Apply for a fast business loan with Excel Capital: Apply Now

Frequently Asked Questions

What is the easiest business loan to get?

Thanks to the digital tech revolution, several new business funding vehicles have become available.

These options don’t require good credit (for some, even bad credit is acceptable), though your business does have to be in good standing.

Here are some of the easiest and most accessible new small business financing tools:

Unsecured business loan: A lump sum of cash with no hard collateral requirements such as property or savings.
Split funding: Acquire a sum equal to a portion of future credit card sales. The advance is then repaid based on a percentage of credit card sales.
Term loan: A lump sum of cash designed to serve immediate, often smaller-scale cash needs. Predetermined payment schedules and amounts.
Business line of credit: This gives you access to a pool of capital you can draw from as you need it, allowing you to reuse given you repay your balance.

With each of the above options, you can be approved with less than stellar credit. No longer do you need to settle for one or two bank financing options.

Now, you have several new and unique business financing options with more realistic qualification requirements, which you can use to get the funding your business needs– and get on with the important stuff, like growing your business.

How can I get funding fast?

Nowadays, many quick business funding options exist.

If your business is in need of funds fast, all you need to do is:

Complete a short application, and
Include 3 months of your recent business bank statements

Most quick business loan options can fund in as little as 24-48 hours from application to approval.

So, if you’re in need of funds fast, submit an application to see what you’re approved for.

Is getting a business loan easy?

Getting approved for a business loan is easier than ever, thanks to recent developments in the fintech (financial technology) space.

In the past, acquiring a business loan from a traditional bank was tough. You either had the credit or you didn’t.

And because acquiring financing was only available from friends, family, or your local bank, if you didn’t have someone who would lend to you and no bank would approve you, your luck was up.

Today, getting a business loan from a traditional bank isn’t any easier. The typical credit requirement is often 720+, far above the average credit rating, and credit is the primary qualifying factor.

However, thanks to the fintech movement, new business funding options have become available that take your entire business’s health into consideration.

That means you don’t need perfect credit. In fact, you can even be approved on bad credit if your business is in good standing.

Where Can You Get Your Personal Credit Report for Free? (2024 Guide to Obtaining and Reading Your Credit Report)

September 21, 2026April 9, 2024 by Maria Khatiashvili

Your personal credit report acts as a gateway to your financial future.

When you review the inquiry section, our guide to hard inquiry reporting timelines and removal can help you interpret the dates and distinguish hard checks from soft checks.

Right now, your report may or may not be very promising.

The good news is you’re in full control of what shows up on your credit report, so you ultimately decide that future.

And with the right steps, you can open the way to the funding your business needs any time you need it.

But first, you need to obtain your credit report so that you know what you’re working with.

And that’s exactly what we’re going to help you with in this guide.

Below, we’ll cover:

The single best– and only officially recognized– way to obtain your credit report (for free)
How to read your credit report
How your credit score is calculated
Tips for cleaning up your credit report and improving your credit
And how to obtain business funding no matter what condition your personal credit is currently in

Obtain a business loan even with bad credit. Apply to see if you’re approved today: Apply Now

How to Obtain Your Credit Report for Free (Only Officially Recognized Method)

By law, U.S. citizens are entitled to obtain their credit report for free, once from each of the three major credit bureaus every 12 months.

However, many credit monitoring services will mask this fact behind a paywall of credit monitoring.

While credit monitoring can be useful, you’re not required to pay for monitoring to obtain your credit report.

According to the FTC.gov, only one website is officially authorized to provide U.S. citizens with a free credit report.

That site is AnnualCreditReport.com (annualcreditreport.com/index.action).

This means you do not have to pay any company or service for access to your credit report.

If you haven’t already obtained a copy of one of your credit reports (no matter from which credit bureau), it’s suggested you have that as we go through the rest of this guide.

Having it on hand will allow you to make notes and mark it up with areas that need attention, whether that’s improvement, removal, or simply some research.

So, if you haven’t yet, head to AnnualCreditReport.com to get a free copy of your credit report.

How to Read Your Personal Credit Report

Your credit report is a collection of your financial data (such payment history, current debt) gathered by a credit bureau, typically one of the major bureaus in Experian, Equifax, or TransUnion.

Access to your credit report can be requested by you or anyone you authorize to run your credit for the purpose of using your credit score and/or report to help grade your financial eligibility.

The information on your credit report is separated into 4 major sections:

Personal information
Credit history
Credit inquiries
Public records

Personal information

This section includes basic information such as your name, address, and phone numbers:

Understanding Your Personal Credit Report 1

Credit history

Credit history includes credit accounts, how much you owe (if anything), how long the account has been open (or closed), and whether you’ve ever been late on payments:

Understanding Your Personal Credit Report Example 2

Credit inquiries

When you apply for credit, that company or lender will run a hard inquiry on your credit, which impacts your credit score immediately up to 1 year and lasts on your credit report for up to 2 years.

Those inquiries appear on your credit report in the proceeding section, typically just after your accounts:

Understanding Your Personal Credit Report 3

Public records

Finally, public records includes all assorted items such as judgments, liens, bankruptcies, and foreclosures

Once you understand how your report is structured and what is included in each section, it’s much easier to read through your report.

However, there are some confusing terms that show up in credit reports you’ll want to know as well to make sure you understand everything that’s included in one of your credit reports.

Understanding Your Personal Credit Report 4

A quick breakdown of all those confusing credit report terms

Here’s a quick breakdown of some of the most common terms that may appear on your credit report:

Collection account: When a debt can’t be collected, large companies tend to sell that debt off to a debt collector. That account will show up as a collection account.
Charge-off: You might notice that some of your credit accounts say “Charged-off”. This means the creditor has given up on trying to collect the debt and written that debt off as a loss on their taxes. That debt may or may not have then been sold to a debt collector, so check to see if that same debt shows up as another account under a different name.
Open account: An open account includes any financial responsibility to which you pay off each month, such as a cell phone or utility bill.
Revolving account: This includes revolving credit accounts to which typically a portion of the balance is paid each month such as credit cards.

For a list of additional terms and codes that may appear on your credit report, several credit bureaus and other financial institutions offer handy guides, such as Creditfirm.net.

How to Calculate Your Credit Score

Now that you understand how to read your personal credit report, let’s dive into your credit score.

Your credit score is a direct reflection of the state of your credit report.

If you learn what factors impact your credit score and how to read your credit report, you can put that knowledge together to vastly improve your credit. And you can do it often within a relatively short period of time.

*Getting 9002 or 9003 credit when running your credit score? Find out what it means and what you can do about it.

How you credit score is calculated

Credit agencies such as FICO and VantageScores take the data collected by the various bureaus to calculate your score.

After calculating the data, they produce a score somewhere between 300 and 850 based on various factors, one score for each major credit bureau.

It’s these agencies that calculate and produce your score, not the credit bureaus themselves. This is an important differentiation that’s critical to understand if you want to fully comprehend how your credit report and score work.

What factors impact your score?

So then, how is your credit score calculated?

There are 5 major items from your credit report that impact your score and these are the items you should be looking for when reviewing your credit report for possible improvements.

Below, we’ve organized those major factors in order of importance. The percentage (out of 100% total) indicates how important that particular factor is in calculating your score:

Payment history: 35%
Credit utilization: 30%
Credit history: 15%
Credit mix: 10%
New credit: 10%

Payment history: 35%

Easily the most important factor when it comes to calculating your credit score at 35% of your score, payment history accounts for just over ⅓ of your entire score’s calculation.

This includes the number of on-time payments, late payments, and when those payments were made.

Suffice it to say, try to never be late on a payment.

However, it’s also important to note that FICO and other agencies state a couple of late payments aren’t going to kill your score.

It’s much more of a collection of factors taken together than any one thing dominating the scoring calculation.

Credit utilization: 30%

The second of the two most important factors in calculating your credit score is credit utilization. Taken together, payment history and credit utilization account for 65% of your score

Credit utilization takes into consideration the amount you owe, particularly what percentage of your available credit you’ve borrowed from.

The less you’re borrowing from your available credit, the better your score.

For example, it’s generally advised to use no more than 20-30% of your available credit. If you have a $250 credit card, another $500 card, and a final card with a $1000 limit, your available credit is $1750.

However, you should shoot for spending just $350-525 of that amount (the less the better).

Credit history: 15%

Most notably, this takes into consideration the age of your credit accounts.

The longer your accounts have been open, the better your credit score will be. However, this also accounts for how long you’ve been actively using those accounts.

Ideally, you should have multiple accounts open for a long period of time all which you’re also actively using, even if it’s only a small portion of the available credit.

Credit mix: 10%

Credit mix accounts for just 10% of your score’s calculation and it has to do with the combination of credit accounts you have on your report.

This one is a bit vague, but it’s generally suggested that a good mix of revolving and installment accounts of different types is best.

The idea is that it indicates the borrower (you) can handle different types of credit, further increasing your credit score.

New credit: 10%

New credit is the final element and it accounts for another 10% of your score.

This includes two different things:

New inquiries
New credit accounts

First, soft inquiries don’t affect your credit. However, hard inquiries– such as when a car dealership or bank runs your credit for a loan– do impact your credit and stay on your credit report for up to 2 years.

Second, opening several new accounts within a small window of time can also impact your score, as it can suggest that you’re in financial trouble.

However, something else not often considered: opening new accounts lowers your average account age, which also impacts your credit history.

4 Best Tips for Improving Your Credit

Now that we’ve covered what to look for on your credit report to start building toward a better credit score, we’ll cover some of our best tips for improving your credit.

Here are tips for improving your credit:

1. Get credit monitoring

One of the single most important things you need to do if you’re serious about working on your credit is credit monitoring.

Credit monitoring, through sites such as Credit Karma, gives you a gateway into your credit activity.

It will tell you not only when something has positively or negatively impacted your score, it will tell you when new items are added to your credit report, and help you identify credit fraud swiftly.

2. Remove old, erroneous, and fraudulent items

If you haven’t been keeping an eye on your credit report all this time, chances are that one or more items have landed on it that can be removed.

This includes items that:

simply old and should have fallen off
Erroneous items such as credit accounts being listed twice, and
Fraudulent items you might never have noticed

Examples of items you might see and be able to remove from your credit report include a UCC filing or UCC lien, which often stay on your credit after they’ve expired and can easily be removed, tax liens, or judgments.

Sometimes, companies will run your credit without your authorization. If you notice an inquiry you know you did not permit, you can request to have it removed.

Another example is a credit account which you’ve paid off or has been charged off, both of which can often be removed in some cases.

3. Pay on time, no matter what

As we talked about earlier, your payment history accounts for ⅓ of your entire credit score.

That means making sure that you’re paying on time is one of the single most important things you can do to improve and maintain your credit score.

Don’t forget that if you’re having trouble paying something on time, you can call most companies and request an extension. Many industries offer up to 2 extensions a year (or more), which means you have flexibility if need-be.

4. Optimize your credit utilization

Similarly, credit utilization is nearly ⅓ of your entire score.

Many aren’t aware of the importance that credit utilization plays in terms of your credit score. And, if they are, many more aren’t aware of just how much of their credit they should be spending.

Most sources will suggest you keep your credit utilization below 30%. This is technically true. However, if you keep it to under 20%, the difference is significant and it requires just a little extra self-restraint.

Alternatively, you can look into whether you’re available for a credit limit increase from any of your credit cards.

Obtain the Funding Your Business Needs (Even without Great Credit) with Excel Capital

You credit is a gateway to some of life’s most important moments: your first (or next), a new home, or obtaining a business loan to get your business off the ground.

Now that you have your credit report in hand, you might be wondering what your options are.

If you’re working on improving your credit, don’t let that hold you back from obtaining the cash your business needs to move forward.

At Excel Capital, we’ve helped thousands of business owners find the perfect funding solution for them.

We know that every business owner is at a different stage and a lack of accessible capital (or good credit to get that capital) shouldn’t be the reason your business doesn’t succeed.

We’ll work with you to identify the perfect option to fit your business– and your goals– no matter where you are in your credit-building journey.

Click below to apply:

Get the capital your business needs. Apply with Excel Capital today: Apply Now

Private Business Loans

April 18, 2024April 2, 2024 by Simon Reed

What are private business loans?

Private business loans don’t refer to a specific type of business loan.

Rather, it refers to any alternative business loan (i.e. a business loan offered by a lending institution other than a traditional bank) offered by a private lender.

Hence, the private in private business loans.

Private funding can include several different lending types, including:

Crowdfunding and peer-to-peer funding
Microfinancing
And most of all, alternative business loans

Private business loans specifically offer one unique advantage of traditional bank financing: an alternative source of business funding.

And that funding is often easier to obtain or offers alternative qualification requirements, that combined allow you to potentially obtain funding for your business when otherwise you wouldn’t.

What types of private business loans are there?

Private business loans encompass a whole suite of lending products.

Some are short-term, some medium, some long. Some offer a one-time lump sum, others a more continuous flow of capital based on your needs.

And still others are designed specifically for certain types of businesses, including those which invoice their customers.

The more you know about each loan type, the better you’ll be able to identify a funding vehicle that’s the best fit for accomplishing your business goals.

Here are the main types of private business loans:

Term loans

Term loans are primarily separated into 2 different loan types: short-term and medium-term.

Term loans is a blanket term which refers to virtually every type of private business loan, including:

Unsecured business loans
Business lines of credit
Merchant cash advances
Invoice factoring
Asset-based loans

Learn more about short and medium-term business loans.

Business lines of credit

A business line of credit is a unique lending vehicle that gives you access to a pool of credit that you can tap into whenever you need it.

When you’re approved for a business line of credit, you’re given a credit limit. All you have to do is make sure that you pay off your balance regularly and you’ll be able to continuously tap into it over time.

This makes a business line of credit especially great for seasonal businesses.

Learn more about business lines of credit.

Financing

Financing is an umbrella that includes two main types of funding products: equipment financing and invoice financing:

Equipment financing

Equipment financing gives you the ability to get the funding you need to finance a vital piece of equipment when you don’t have the cash to get it on hand.

You’re able to fund the full cost of that piece of equipment with the equipment itself working as collateral as you pay it off at interest.

Learn more about equipment financing.

Invoice factoring

Invoice financing works similar to equipment financing in that you use one or more (often many) of your business’s invoices as collateral (instead of a piece of equipment) to obtain financing which you then pay off at a specified interest rate.

Invoice financing is useful as a way to bridge the gap when you have open invoices in your accounts receivable and need to maintain a steadier cash flow, something many businesses suffer from.

Learn more about invoice factoring.

Merchant cash advance

A merchant cash advance is a unique type of business financing in that it uses your daily credit card sales as a form of soft collateral that also determines your loan amount.

You get an amount based on your regular credit and debit card sales which you then pay off with interest by setting up an ACH auto debit straight from your credit card processor each time you batch out.

MCA’s are flexible in that because you’re paying the loan off at a percent of your credit card sales; when your sales dip so does your loan repayment amount go down.

Learn more about merchant cash advances.

Hard money lending

Hard money lending is a type of asset-based lending, a type of financing secured by a tangible asset such as a car, property, or liquid asset such as cash savings.

Hard money lending specifically works as a short-term “bridge loan”, named so because it’s designed to help businesses bridge the gap on large projects where the project must be completed before getting paid.

Think hard money lending is the perfect option for your business? See what you could be approved for.

Peer-to-peer lending

Peer-to-peer lending (also referred to as P2P), is a form of crowdfunding which has become increasingly popular over the past few years.

With P2P, a group of people come together, typically on a P2P lending platform that facilitates the transaction, and offers a pool of funds to a borrower at interest.

Learn more about peer-to-peer lending.

Pros and cons of private business loans

Private business loans tend to work a bit differently than traditional bank loans.

That’s mostly a good thing. However, there are not only pros but also cons to this as well.

Before deciding how you’ll be funding your business capital needs, you should know what those pros and cons are to help you make an informed decision.

Pros of private business loans

The major overarching pros of private small business loans are:

Easier approval: Private lenders take into consideration the complete picture of your business’ health, not just your credit score. Because of this, you can often be approved for a loan or advance with bad or fair credit.
Faster funding: Private lenders typically pride themselves on their speed as they don’t have to move through the same hoops that clog the bank loan approval process. Most alternative lending options fund in 24-48 hours.
More options: Private lenders have a variety of funding options even beyond that which traditional banking institutions typically offer. For example, if you need funds but don’t have the money now to start paying off a loan but do have outstanding invoices, invoice factoring could offer you the chance at getting the funding you need when a traditional bank funding application might leave you without anything to show.

Within these points are many positive subpoints such as no hard collateral requirements, little or no credit requirement in many cases, and more convenient terms.

However, each lender is different. Make sure to take time to look at your options and go with the product, lender, and terms that make the most sense for your business and its goals.

Cons of private business loans

When it comes down to it, there really is just one primary con of private business loans: higher rates.

Not all private business loans have higher rates, but most do. That’s for one primary reason: most have different qualification requirements.

As we touched on a moment ago, private business loans have more flexible terms and qualification requirements. In particular, that means two things:

You don’t need great or even good credit to get a private loan.
Most business loans through private lenders don’t require hard collateral like bank loans do such as property, a vehicle, or cash savings.

Those are big positives. However, the flip side of that is many private loan products have higher APRs and shorter loan terms to make up for that increase in risk the lender takes on as a result.

It’s important to make sure and review any loan contract before signing to make sure that the numbers make sense for you and your business.

It’s easy for a high APR to become overwhelming. But many private lenders offer fair and competitive APRs, so do your homework before taking that final step.

Get the funds you need without the headache– and fast– with Excel Capital

At Excel Capital, we know how much work it takes to run a business.

You have enough to deal with, you don’t want to stack the often painful process of applying for a loan that is often the bank application process on top of that.

Plus, what if you don’t have the credit?

You work hard each day to grow your business, and sometimes, just to keep it afloat.

Times change, sometimes there’s growth, other times you’re fighting to survive.

In both cases, a little extra capital may be exactly what you need to keep things moving forward.

That’s why we’re here to help.

We believe that the traditional process of jumping through hoops to be approved for a bank loan and needing stellar credit just to get approved is unrealistic for modern businesses.

That’s why we’ve designed a collection of flexible business financing options that offer everything you need, whether you’re looking for:

A quick infusion of cash to pay the bills
A seasonal boost to prepare for your busy time
Or a large sum of capital in times of growth

Our application process is quick, simple, and easy.

Complete our online application and see how much you can be approved for: Apply Now

Frequently Asked Questions

How can I get a small business loan?

You can acquire a small business loan from several places, from a traditional bank to an alternative private lender or peer-to-peer lending institution.

In recent years, alternative private lenders have become popular as they’re not typically bogged down with the high credit requirements and slow application processes that are synonymous with applying for a business loan at a major bank.

What is the easiest business loan to get?

Easy is relative when it comes to business funding options, but getting a loan from a traditional bank is generally much harder than with an alternative lender as credit requirements are stringent, typically requiring 680-720 or higher just for initial approval. Alternative lenders, on the other hand, offer business financing solutions on fair and even bad credit, provided your business is in good standing.

Who can qualify for a small business loan?

Nowadays, anyone can qualify for a small business loan, provided your business is in good standing. Traditional banking institutions require 680-720+ credit while SBA loans require 620+. However, alternative lenders offer financing solutions in the fair to bad credit range.

How much money can you borrow for a small business loan?

With Excel Capital, you can be approved for a loan up to $2,000,000, depending on various factors. Apply today to find out how much you can be approved for.