Business Finance

Emergency Small Business Loans: What Are Your Options?

Stressed Businesswoman

Running a small business comes with its share of uncertainties. From unexpected expenses to sudden cash flow shortages, emergencies can arise at any moment. As a result, you can frequently need immediate financial support.

Accessing quick funding can be vital for keeping your business running smoothly in these situations.

But what are your options when you need an emergency small business loan? In this article, we will explore the most accessible and effective ways to secure emergency funding for your business.

Short-term business loans

Short-term business loans are designed to provide quick funding for immediate needs. These loans typically have short repayment terms, ranging from a few months to a couple of years. These loans are ideal for addressing short-term financial challenges.

With a short-term loan, you can access funds within days or even hours, depending on the lender you choose. This makes them a great option if your business needs to cover urgent expenses such as payroll, repairs or supplier payments.

Further reading: How Do Small Business Loans Work?

Business lines of credit

A business line of credit offers flexibility, allowing you to borrow money as needed, up to a pre-approved limit.

Rather than receiving a lump sum, you can draw funds whenever your business faces an emergency, making it a useful tool for managing ongoing or unexpected costs. You only pay interest on the amount you use, which can be more cost-effective for businesses that want access to funds but do not need them all at once.

With a business line of credit, you can quickly access funds as and when needed, offering a flexible safety net for emergencies. This type of financing is available from both traditional banks and alternative lenders, where the application process is often quicker and more straightforward than with high-street banks.

Invoice financing

If your business deals with a lot of outstanding invoices, invoice financing (or invoice factoring) can be an excellent option for raising emergency funds. This type of financing allows you to borrow against the value of unpaid invoices, giving you immediate access to cash that would otherwise be tied up until your customers make payments.

Invoice financing is especially useful for businesses with long payment cycles or those that frequently deal with late payments. Instead of waiting 30, 60 or even 90 days for invoices to be paid, you can access a percentage of the invoice value upfront. This can help you maintain a steady cash flow during periods of uncertainty.

Merchant cash advances

A merchant cash advance (MCA) allows businesses that generate revenue through card payments to borrow money against future sales. It’s a flexible option for businesses that need fast access to funds but might not qualify for a traditional loan due to inconsistent cash flow or a lower credit score.

With an MCA, you receive a lump sum upfront and repay the loan via a percentage of your daily or weekly card transactions. This means that repayments are directly linked to your sales, making it easier to manage in periods of fluctuating revenue. While this option provides fast access to cash, it’s important to note that merchant cash advances can come with higher costs, so it’s essential to consider whether this is a suitable option for your business.

Alternative lenders

In times of emergency, traditional banks can be slow to respond, with lengthy application processes and strict lending criteria. This is where alternative lenders, such as Funding Triangle, can offer a much quicker and more flexible solution. With a wide range of lenders and financing options available, alternative lenders are well-suited to businesses looking for fast approval and funding, without the red tape of traditional institutions.

At Funding Triangle, we work with over 120 lenders to provide unsecured business loans with competitive interest rates and fast turnaround times. By opting for an alternative lender, you can access emergency funding in a matter of days, helping you navigate financial challenges quickly and efficiently.

Ready to apply for an emergency small business loan?

When your small business is faced with an emergency, having access to fast and flexible funding is essential.

Whether you opt for a short-term loan, business line of credit or invoice financing, there are several options available to your business when you need urgent financial support.

If you need funding today, Funding Triangle is here to help. We provide fast access to funds, allowing you to keep your business on track during difficult times. With unsecured loans starting at just 4.8% interest and no early repayment fees, Funding Triangle offers flexible and affordable solutions to small businesses.

Get started by completing our simple application form and see funds of up to £500,000 in your bank account within 24-48 hours. Fast, simple and hassle-free business loans – that’s the Funding Triangle promise.

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