If you’re saying “I need a small business loan fast”, you should consider a business line of credit.
A business line of credit is a type of small-business loans with the flexibility that a traditional business loan doesn't have.
You can borrow up to a certain limit with the line of credit. It varies by lender -- for example, let’s say the lender allows you to borrow $100,000.
To give you a better idea about the line of credit, let’s say that it works like business credit cards. You have the repayment term of the borrowed money in full or by portion each month.
As with other loans, interest rates will be added to your principal balance owed. But once you’re done with the repayment, you may borrow again from the lender.
Also, you can use the business line of credit in any way you want. That’s the reason why a business line of credit is one of the best options if you’re thinking “I need a small business loan fast”.
However, you do have to ensure you get it from the right business lender. That's why today, we'll talk about the business line of credit and where to get this small business line loan fast.
Business Line of Credit for Fast Cash
As with traditional business loans, you have the freedom to use cash advance from a business line of credit as desired. You can use it to buy inventory, hire employees or pay for an unexpected expense.
Its flexibility makes it popular among business owners. It’s also popular because it’s easy to acquire.
Most business lenders offering a business line of credit have fewer requirements for them compared to traditional business loans. Your established business can get funds immediately after the approval of your application too, in most cases.
To give you an idea of where to go, here’s where you can get the best and fastest deals for a business line of credit.
Bank of America
If I need a small business loan fast, Bank of America is one of the first lenders I’d go to. That’s because they offer one of the best business lines of credit. The interest rates for the business line of credit start at 5.25%
Other than that, many business owners choose them because of their rate discount. If you deposit a lot of money and the higher your ending balances are. You will have an interest rate discount of 0.25%, 0.50% or 0.75% from them.
The interest rate will depend on your three-month average combined balances in Bank of America business deposit bank accounts and/or Merrill Edge® or Merrill Lynch® business investment accounts.
You can also get secured and unsecured business credit lines from the Bank of America.
The unsecured lines range from $10,000 to $100,000. The secured lines start at $25,000. When it comes to the secure lines, it starts at $25,000.00
If you want to get business lines of credit from the Bank of America, your business must have a two-year track record under existing ownership.
Also, you must have annual sales of at least $100,000 for an unsecured business line of credit or $250,000 for a secured large business line of credit.
Whenever I need a small business loan fast, I also consider PNC Bank. They offer the business line of credit with the longest repayment term.
Their secured credit lines have a credit limit of $100,001 to $3 million. That’s one of the highest maximums for business credit lines offered by banks.
Your line can be secured by non-real-estate business assets. This includes equipment and properties or assets that meet a certain value.
Each year, the PNC Bank will review your business. This is done to make sure that you still meet the requirements to renew the line of credit for another year.
If I need a small business loan fast with a fixed-rate option, US Bank is the place to go.
US Bank’s Cash Flow Manager Business Line of Credit comes with an option to lock in a fixed rate. This option is available if you have a minimum credit line of $2,000 with a short term loan of 1 to 5 years.
However, US Bank may limit the number of fixed interest rate options you can have. Also, the fixed-rate option is not also available if your personal credit line has a Small Business Administration guarantee.
Wells Fargo is another one of the banks I consider if I need a small business loan fast.
They offer a fast business line of credit. But they are especially known for their reward system and accessibility to startup business owners.
You could get two types of an unsecured business line of credit from Wells Fargo. Those are Wells Fargo BusinessLine® and Wells Fargo Small Business Advantage®.
The business lines of credit by Wells Fargo don’t require you to have a track record of several years in business. That’s great for startups.
Startups can borrow money using an unsecured business line of credit. Start up businesses can borrow working capital that ranges from $5,000 to $50,000.
Online Business Financing Companies
Now, the banks above are great. Still, whenever I need a small business loan fast, I always end up getting it from online business financing companies instead.
Unlike with local banks, you can get approval easily from most of these business lenders as they can help you at overcoming their business expenses. They have lower credit restrictions and a lower credit limit to get started as a start up business.
You can even get approval a mere 20 minutes after sending your business loan application.
There are a fair number of good business financing companies you can try. But if I need a small business loan fast, Trust Capital is my first choice.
Online financing companies like Trust Capital offer some of the best revolving lines of credit. You only have to pay the interest of the working capital that you actually used.
Also, there’s no pre-pay penalty and interest is not frontloaded. This allows you to pay back the outstanding balance on principal early and not have to pay the remaining interest.
To qualify, you only need to have a credit scores of at least 620 and $300,000 in annual revenue.
If you meet the requirements, you can borrow anywhere from $10,000 to $5000,000. You can repay it from 6 to 12 months .
The credit line will be replenished once you make monthly payments too. There will never be any renewal process.
Final Thoughts on Getting a Business Line of Credit
In this blog post, we talked about the business line of credit and where to get it.
The business line of credit is a type of small business loan. You can get it easily from most online lenders and you can use it any way you want.
But to make the most of it, make sure to get it from the best online business lenders. If I need a small business loan fast, I always consider the direct lenders I mentioned in this blog post first.
However, I always end up choosing Trust Capital in particular out of all of them when I need a small business loan fast. To know why I choose them when I need a small business loan fast, contact them at (866) 458-4777.