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Account Receivable FactoringGetting a fast small business loan might seem like an oxymoron. And some lenders make you feel like a moron for even asking the question. Nevertheless, there are other options, such as alternative lenders that can help any business get the needed funds quickly.

The Way Traditional Banks Handle a Fast Small Business Loan

When trying to get a fast small business loan from a traditional bank, the deck is already stacked against you. In order to be considered, the bank will want you to prove that you have 100 percent of the collateral to back it up. Well, if you had that collateral to begin with, you would probably not be seeking a loan in the first place.

Additionally, when deciding whether to approve a small business loan, traditional banks are only concerned with the bottom line. It’s all about balance sheets, cash on hand, accounts receivables, etc. The bank will ask you for a lot of backup documentation and the application process will be lengthy.

Banks and the officers couldn’t care less about the usefulness of your product, the potential of your ideas, or the passion you have for your business. In short, for small business loans, traditional banks are not the way to go.

 The Pros and Cons of Traditional Factoring

Another option for getting a small business loan fast is traditional factoring. This is a process by which a financial institution will agree to provide you with a small business loan based on your account receivables. Sure, you get your money, but there are several disadvantages in traditional factoring.

For one, they will have to contact each and every client you have that owes you money, to demonstrate that your application is accurate and you may not like that your clients are now hearing that you need financing. This process also takes a lot of time, so if you need the funds to make payroll for the month or to handle an emergency business expense, the funding probably will come in to late.

Also, traditional factoring organizations customarily charge a substantial upfront fee, often thousands of dollars, which gets automatically added to the cost of your initial loan. In addition, they require a long term commitment of at least two years which really makes this funding expensive because it is such a long term commitment.

 The Cash Advance Option from Payroll Financing Solutions

Your best bet for an immediate business loan is to go with a cash advance funding source, like Financing Solutions. FS provides fast financing designed to just get you through a rough patch such as if you need to make payroll, take advantage of an immediate business opportunity, hirer additional staff, etc.

With this type of spot funding, you can get a decision in an hour and your money within a day. You can borrow up to $150,000 and use a quick repayment plan. An approval answer happens in about 20 minutes after a conversation with a Managing Partner and only after you have been approved will any backup documentation be needed. The whole idea behind FS’s spot funding is that it is a quick and fast financing alternative that allows you to get through a short term funding issue. If you need a fast small business loans with no hassles, then FS is the ideal choice.

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