As the last few years have proven, it’s no secret that nasty shocks could be lurking just around the corner for any business. In a turbulent financial world, you could suddenly find yourself in a situation where your business needs an immediate injection of cash.
The good news is that there are plenty of different sources of business finance available. But by far the simplest and quickest way to access vital funds is with a small business loan.
However, these come with their own pros and cons. Read on to discover whether this is the right approach that your business should be taking today.
Pros of fast, small business loans
Quick access to capital
Traditional loans can take a long time to process – and when you need that cash immediately, it can often take too long. But small fast business loans can give you the money you need in as little as 24-48 hours. That fast turnaround can be crucial for addressing urgent financial needs such as a slowdown in cash flow or unexpected expenses.
No restrictions on use
Fast business loans typically come with fewer restrictions on how you can spend the money. So, whether you’re expanding into new premises, hiring more people or just purchasing equipment, you have the freedom and flexibility to use the funds as you require.
Funding without obligation
Compared to other forms of business financing, a small business loan means you get the injection of cash without having to surrender any control of the business. For instance, equity finance requires you to sell shares in your company to investors, and share future profits. However, once a small business loan has been repaid, you no longer have any obligation to the lender.
Cons of fast, small business loans
Strict criteria
Eligibility can be strict when applying for small business loans. In many cases, it can exclude your business from applying altogether. If your business is only in its early days and hasn’t been running long, you may struggle to find a lender that accepts your loan application. Alternatively, it can mean that you might be charged with higher interest rates.
Time-consuming application process
An application for a small business loan can often be long, frustrating and stressful. As well as completing complex forms, you may also have to submit a business plan, history of your account and financial forecasts for a lender to judge your eligibility. And even after that, there’s still a risk that you won’t get the funding you require. Whilst many lenders are generous in their loans, there’s no guarantee of getting the money you need.
Potential impact on cash flow
Fast, small business loans can be a huge help in providing immediate financial aid, but they can worsen cash flow problems in future if managed poorly. There’s also the risk that high interest rates and short repayment terms can eat into your profits and cause future financial stress.
But we’re here to help you
Funding Triangle is a fast, small-business lender providing loans from £10,000 to £500,000 in as little as 24-48 hours. With unsecured business loans from 4.8% and no assets or security required, you can get same-day approval without it affecting your business’ credit score.
