What are Emergency Business Loans?
Emergency business loans are just that – an emergency loan for business in crisis or natural disaster the that small businesses may be faced with. There are always specific issues in running a company that can either be predicted or not predicted. Still, the reality is when there is a crisis or business emergency, it’s a priority that the business gets capital fast.
Emergencies require a loan product that can process and fund your firm quickly from application to funds in your bank account fast, period. Businesses with knowledge about financing options make your decision easier when time is of the essence to find the right emergency loan. Banks are not the source if you need funds fast and in a crisis. Banks are cautious and have to protect depositors, so banks will not be an option if speed is what you need.
Online lenders like AdvancePoint Capital can find the best emergency business loans or other great alternatives to bank loans for small businesses searching for emergency business loan options. Lets us be your lending partner that will find you the right emergency business loan and solve your cash flow emergency.
What is considered a business emergency in the eyes of small businesses or a lender for that matter?
Below is a list of the common needs and uses for small businesses faced with and emergency financial assistance:
- Cash flow
- Working capital for firm shortfalls
- Advertising and marketing
- Repairs of existing facilities
- Equipment breakdowns
- Inventory, supplies, and other assets
- Emergency payroll issues
- Emergency cash infusions due to extenuating circumstances
- Crisis relief for accounts receivable issues
The 5 Best Types of Emergency Business Loan Options: How to Get Funding Fast
An “emergency loan” for a business can come in many forms. So let’s dive right into the many options and details of what resources are available for companies in a crisis. It’s an emergency, after all!
Emergency Business Line of Credit
Business lines are a great solution in an emergency as you can draw funds on demand up to a credit limit without having to contact the business lender. A business line of credit is revolving credit line in that you only pay interest on your outstanding balance. A line of credit is excellent to cover unexpected expenses. You need to have a good personal credit score for business line of credit. Emergency business lines are great to have before the emergency exists, so apply for credit lines before you need it.
Emergency Small Business Loan
The most popular request from small business owners is a business term loan. Business term loans offers a cash upfront, with a fixed term, fixed interest rate and a fixed payment. Good for emergency funding if you have good credit and healthy bank account. A short term loan may allow for some credit issues vs. traditional business loans. Receive funds same business day from an online lender.
Merchant Cash Advance (MCA's)
Merchant cash advance is know by small business owners to be one of the fastest emergency financing options out there. Merchant cash advances are not a loan, but an advance of cash upfront based on your sales volume, paid back by a fixed percentage of future revenue.
Business Cash Advances (BCA)
Emergency business cash advance is a popular option when traditional lenders won't offer a loan for your business. Business cash advance is tolerant to most credit types and business financial statements issues, This is a great working capital option to access emergency funds. Minimum annual revenue requirements apply.
Offered by a factoring company, invoice factoring is a popular choice for those businesses that regularly invoice there clients. The factoring company will advance outstanding invoices that have not been paid yet within the terms of the unpaid invoices. This option can accelerate the receivables to the business owner before the client pays invoice, which can be of great help in a financial emergency related to cash flow. A factoring company will not advance unpaid invoices if the invoice is delinquent and would not qualify for invoice factoring.
Other Emergency Business Financing Options for Business Owners that are faced with an Emergency
Business Credit Cards
A business credit card is a great option when time is of the essence in an emergency. It is important to realize that you will pay interest over time with a business credit card and its important to budget for repayment. A Business credit card has monthly payments and no origination fees. If you have poor credit it may be difficult to obtain this option. Credit cards have a personal guarantee.
Many business owners resort to personal loans in an emergency as it’s a short term loan that you can get a personal loan approval in a pinch. Remember that a personal loan has a personal guarantee and if you were to close your business you still would be saddled with the debt.
Get Started Today
AdvancePoint Capital makes the loan application process a simple, straightforward experience.
Frequently Asked Questions
Final Thoughts About Emergency Business Loans
Although you may be faced with an emergency/crisis, take the time to consider who you are looking to get funds from. Have you checked the company’s reviews? Do you feel that you were offered every program available? Will the loan program work for the funds you need to get a return on the investment?
How to Apply for Emergency Business Loans:
AdvancePoint Capital offers a straightforward emergency business financing. Our customers love the fast, streamlined process and high approval rates that come from working with us. Let us help you decide what program is best suited for your unique situation. All credit scores are considered. Applying for a loan with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. Start with this online form, fill out the short application page, wait a few hours for your approval, and then get your offer.