Quick business loans: fast and efficient funding solutions for your business needs

What are the benefits of quick business loans?

• A quick and easy business loan application process: it often takes just a few minutes to apply for these loans and the lender will make quicker decisions
• Quick business loans are different from other types of business financing because they usually don't require collateral. 
• You can receive money in 24 hours, compared with traditional loans which often take weeks or months
• You can use these loans for any business purpose, like new investments or cash flow consolidation

Quick business loans are great if you only need money for a short while, such as to pay suppliers or expand your inventory before your revenue comes in, or for unexpected or emergency costs like broken machinery.

Drawbacks of quick business loans

As with any form of finance, you should be aware of any downsides, as well as benefits, to judge suitability for your business. 

Consider the following potential drawbacks of quick business loans:

• This type of financing can come with higher interest rates and fees than traditional bank loans due to the quick turnaround and higher lender risks.
• Faster forms of finance generally have short repayment periods, which means larger upfront repayments and less time to pay back the loan.

Not all small businesses will qualify for a fast business loan, so it’s important to do your research before applying.

Is a quick business loan right for you?

A fast, unsecured business loan could be right for your business if you need quick and easy access to financing. These loans can be used for any purpose, are ideal for short-term finance needs, and with some providers, like iwoca, you can repay the loan early. with no extra fees.

Also, if you’re a new business or don’t have a long or pristine financial track record,  quick business loans can be a great financing option for you. It’s a fast and easy way to get the money your business needs, and as it’s unsecured, you don’t need to provide various business assets as collateral.

How to get a quick business loan

You can get a quick business loan from UK banks, fintechs and private lenders, with digital lenders more suitable for this type of loan, due to smoother application and approval processes, less stringent eligibility criteria and a greater appetite for short-term lending. 

Most lenders offering fast business loans enable hassle-free applications that can be completed in minutes and approval decisions in days, not weeks, sometimes within 24 hours.

Who provides quick business loans?

Various finance providers in the UK offer quick business loans, from household names to emerging alternative lenders. Digital lenders are a good place to start. For example, with iwoca, applications can be done fully online, with minimal documentation required, and you’ll get a speedy approval decision, supported by automation tools.

When exploring prospective lenders, look out for eligibility checklists to prevent wasted time and check terms to avoid incurring hidden fees and unexpected costs.

What are the eligibility requirements for a quick business loan?

When applying for a quick business loan in the UK, your business and owner must meet various eligibility requirements. Lenders will assess the following when approving your application:

• Age of business: Your business should typically be at least 12 months old, although some lenders may offer loans to younger businesses if they show strong potential
• Business revenue: Lenders will look at annual business revenue to evaluate your ability to repay the loan. The required minimum will vary by lender.
• Credit score: Both the business and the owner's personal credit scores may be assessed. A good credit score can increase the chances of loan approval and potentially secure better rates.
• Collateral: If applying for a secured business loan, your business must own assets of value that can be used as collateral.
• Industry/business type: Some lenders have restrictions on the types of industries and businesses they will lend to, based on their risk assessments.
• Financial documentation: Various statements and accounting data will be assessed within the approval process.

Remember, eligibility and application requirements vary between different lenders, so always check the specific loan eligibility criteria of a lender before applying.

To apply for a quick business loan with iwoca, you must have a UK-based business and operate as a limited company or a partnership. 

What documents will I need for a fast business loan application?

While quick business loans from digital lenders may require less documentation to support your application, most lenders will still request certain legal and financial details.

Here are the types of information you may need to provide:

• Recent bank statements and company accounts
• Cash flow and profitability details
• Projections and forecasting data
• Current credit facilities you have in place (to understand existing debt)
• VAT returns and other tax details
• Your business plans and funding purpose

Some lenders, like iwoca, have integrations with accounting systems, meaning easier access to key data that helps judge suitability and speed up approval decisions.