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Key takeout
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Online lenders tend to specialize in short-term loans and can quickly fund them.
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Banks offer better rates and conditions than online lenders, but the application process and funding time are slower.
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Some online lenders can analyze your documents, approve your loan in minutes, and even provide same-day funding.
Short-term business loans can provide a financial lifeline for your business, but accessing funds that fit your timeline can be challenging. The lender you choose is one of the biggest factors that determine how quickly you have access to your funds. In general, online lenders typically offer faster funding times compared to traditional banks. It can take just 24 hours to get a short-term loan with an online lender, but banks can take days or weeks to fund them.
How long does it take to get a short-term business loan from a bank?
Getting a short-term business loan from a bank can take more than a week to receive the funds. Longer processing times can be due to additional documents that the bank needs and a more thorough review process to approve the loan.
If you have flexibility in your funding time, waits may be in your interest. Bank loans and business lines credit lines tend to have better rates and conditions than online lenders. You can streamline your bank more easily by directly accessing to get personal help and having a loan at the same institution as your business’s checking account.
Bank loans often have a lot of flexibility. The terms of repayment for a term loan usually start at 12 months, but you can also choose a long term up to 60 months. This makes monthly payments more manageable. You can then decide to pay off your loan early to ensure there are no advance penalties.
On the downside, the bank does not provide many loan details on its website. This makes it difficult to compare without applying loan terms or at least prior approval.
Banks with short-term business loans
Two major banks offering business loans with the potential for short-term borrowing are Wells Fargo and Bank of America.
How long does it take to get a short-term business loan from an online lender?
Online lenders tend to specialize in short-term business loans, which is the advantage. They advertise approval and funding timelines typically within 24-48 hours, and some online lenders will fund your business loan on the same day you apply. Usually they have a streamlined online application process that allows you to analyze your documents and approve your loan in just a few minutes. The main drawback is that these lenders may request higher interest rates and loan materials than traditional bank loans.
Online lenders with short-term business loans
If you’re looking for a fast, short-term business loan that will help you fund quickly, check out our 5 top lenders.
Conclusion
The fastest way to get a short-term business loan is through an online lender. What you sacrifice in a physical bank location can be compensated by these lenders with quick funding and streamlined processes. However, large banks offer greater flexibility and often have better rates. Depending on your needs, one of these options may be more suitable. Research different lenders to make the right decisions for your business.