Many businesses find themselves in a situation where they have an urgent need for additional cash. It can be from an unexpected overhead, an opportunity to buy goods or materials at a knock down price, or that the time is right within the marketplace for an aggressive expansion. One of the most important things businesses consider when opting for a fast business loan, is the speed in which it can be processed. Normally it takes 1-3 business days, though some companies will now provide you an answer in a matter of minutes, while some that make this claim will routinely not approve many applicants, even when they have met the minimum qualification requirements.
Minimum qualification requirements
Lenders will look for certain things regarding your business before deciding whether to make you the loan or not., Generally, they will want to know your credit rating, which you can easily check yourself, how long you have been in business, along with your annual revenue. Different companies will have different minimums that they look for, though in reality, these minimum qualifications only really matter, if you already have a good chance of being funded when you actually meet at their office.
Looking at the interest rates
A short term business loan can be expensive, with typical APR rates much higher than your standard bank loan, and often even higher than credit card rates. If you need money in a rush, you need to understand exactly what you are getting into, and if given the costs, if it is really the sound option for you. However, if you have a sudden emergency, you may be left with little option. The rates offered do vary, so even in a crisis it pays to shop around, to see what the best deals are. The first company to say yes to you, may not be the best fast loan deal you can get, so it is wise to explore as much as the time frame allows. Fast business loan companies offer a speed and convenience that the major banks do not, so if you need the cash fast, expect to pay a high rate for doing so. If you are looking for a good deal and speed as well, Max Funding offer fast business loans, with quick approval.
Keeping everything completely legal
In Australia, all financiers and lenders must be licensed or they are operating illegally. It is easy to check with ASIC Connect’s Professional Register, that lists all licensed credit providers. An unlicensed operator may well be a loan scam operator, which could become a serious problem. It is imperative that you have a formal contract for the deal, where all terms, conditions, rates, fees and repayment schedules must be put down in writing. While the need for speed in getting the cash may be important, you still really need to know what you are getting yourself in for, and that you understand exactly what penalties can apply for being late with, or missing a payment. Some companies also have penalties for repaying the loan early, so checking what flexibility you have, can save you a lot of money and aggravation down the road.