Same-Day Business Loans: Where to Turn for Fast Funding

Last updated Jan. 7, 2025
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Finding and accessing same-day small business loans can be tricky but it is doable. You’ll almost certainly need to turn to an online lender for support here, and it’s important to note that the faster you need the funding, the more expensive it’s likely to be. But if you’re in a tight situation, here are your options for same-day funding along with some factors to consider before you apply.

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Types of Same-Day Business Loans

If you’re looking for financing that can fund your account the same day you’re approved, you’ll likely be choosing from the following options.

Short-Term Loans

As one type of business term loan, a short-term loan allows you to borrow a set amount of money and pay it back, with interest, in daily or weekly payments over a period of anywhere from three to 24 months.
Short-term business loans, which can be used to cover a range of business needs, are most frequently offered by online or alternative lenders. As such, they come with benefits like more attainable qualification requirements and online applications that typically require less documentation than more traditional business loans. The frequent repayment schedule for these loans, however, can be a significant drawback as it can impact your cash flow.

Business Lines of Credit

With a business line of credit, you gain access to a pool of funds that you can draw from whenever you need it. You only pay interest on the funds you withdraw, and once you pay back what you’ve borrowed, your line resets (similar to the way a credit card works).
A business line of credit is a great solution to have capital available when you need it, and interest can be more reasonable since you’ll only pay it on the amount you draw down. That said, this type of loan may come with a draw fee, charged every time you withdraw from your line of credit, and may include other fees as well.

Equipment Financing

For urgent funding needed to purchase equipment or machinery for your business, consider equipment financing. Online lenders in this space can often fund your account with up to 100% of the purchase price within 24 hours.
While some lenders may require a down payment, this option does come with two standout benefits: You own the equipment once you’ve paid off the loan, and you won’t need to provide physical collateral to secure the loan since the equipment you’re financing serves that purpose.

Invoice Financing

With invoice financing (also known as accounts receivable financing), an invoice financing company advances you typically 80% to 90% of the value of your outstanding invoices. This helps you keep a healthy cash flow while you wait for clients to settle their invoices. And once they do pay up, the financing company pays you the remaining balance, minus the company’s fees.
For business to business companies, invoice financing can be a helpful solution to ensure a timely injection of cash. You’ll want to be sure you fully understand the invoice financing company’s fee structure before moving ahead to avoid any unpleasant surprises.

Merchant Cash Advances

A merchant cash advance (MCA), sometimes also called a business payday loan, should not be confused for a loan. An MCA involves a merchant cash advance company—not a lender—giving you a lump sum of capital up front in exchange for repayment via a percentage of your future sales. These advances can often come quite quickly and in dollar amounts reaching into the millions.
But if you’re considering an MCA, proceed with caution for the following reasons:
  • You’ll be required to repay the advance daily or weekly, which can significantly hinder your cash flow.
  • You will pay some of the highest interest rates of any type of financing. MCA companies typically charge a factor rate rather than an interest rate, which makes it more difficult to calculate and compare the total interest.
  • MCAs exist in unregulated territory, and therefore predatory practices abound. Contracts can be convoluted and misleading, and fees and terms can be designed to trap you in a cycle of debt.
Turn to a merchant cash advance only if you have no other funding options left and only after very carefully reading any agreement before signing—preferably with some legal consultation.

When a Same-Day Business Loan Makes Sense

Despite the high rates and fees and short terms that same-day business loans generally come with, you may want (or need) to consider a same-day funding option for several reasons, including:
  • You’ve encountered an emergency or unforeseen circumstance and need to repair cash flow.
  • You’ve tried to secure more traditional financing but can’t meet the time in business, minimum credit score, or annual revenue requirements.
  • You have the possibility to expand your business and need a swift injection of cash to help make it happen.

Pros and Cons of Same-Day Business Loans

If you’re looking for a same-day business loan, time may be of the essence. But you don’t want to rush through the process and end up with the wrong business financing product—something that you can’t afford or won’t actually fill your needs.
Consider the pros and cons of a same-day business loan before applying for one.

Pros

✔️ Receive fast funding. Whether you need the funding to cover an emergency or take advantage of a new opportunity, sometimes it’s necessary to access financing as quickly as possible.
✔️ Easier to qualify and apply. Many of these lenders and products have more lenient qualification requirements than banks, credit unions, and SBA lenders. Applications are often online and simpler than those of more traditional lenders as well.
✔️ Choose from a variety of products. Same-day business loans are available in many types of financing products. You can explore your options and find the one that best meets your specific needs.

Cons

✖️ Higher rates and fees. Speed often comes at a price. The faster you need access to financing, the more expensive it’s going to be, especially if you can only meet lower-level requirements.
✖️ Shorter repayment terms. Same-day business loans have shorter repayment terms compared with other products on the market. So, you’ll not only be paying more for access to financing, but you’ll also have to pay back what you’ve borrowed in a shorter amount of time.
✖️ Risk of encountering predatory lenders. Overall, the online lending industry is much less regulated than traditional banks. If you’re looking for a same-day business loan, take extra care to ensure that you’re working with a trustworthy lender and aren’t falling prey to scams or unsavory companies.

How To Tell if a Same-Day Business Lender Is Trustworthy

  • The lender does not guarantee automatic approval . Any reputable lender willing to accept the risk of extending a loan has at least some qualification requirements and at least a minimal application process.
  • The loan agreement is easy to understand , and the lender doesn’t hesitate to provide clear answers to any questions you have.
  • You are not asked to sign a confession of judgment —a legal document that allows a lender or cash advance provider to get around the usual legal processes in the event that you default on your loan. 
  • There are few to no additional fees outside of interest (or factor rate), late payment fees, and perhaps prepayment penalties. Any additional fees are clearly listed on the website or, at the very least, in the contract.
All things considered, even if you’re desperate for fast funding, do your research and trust your gut. If something about the agreement or your communication with the lender feels off, keep looking. Reputable same-day business lenders do exist, and they’re eager to help. (We know because we partner with some of them.)

Fundera Can Help

Curious to see whether you qualify for a same-day business loan? Fill out one simple application with Fundera, and we’ll show you your options. This won’t impact your credit score, and there’s no obligation to get your funding through one of our partners.
Let’s get you funded!

How much do you need?

No cost to you

Your credit score won't be impacted

Compare multiple lenders with one application