The traditional business financing system works quite well for many businesses. However, if you are a less experienced business owner, have bad credit, or just have an urgent need, you may need a faster or easier option. Enter easy business loans.
There are plenty of easy business loans on the market. Easy business loans might as well be their own industry. The lenders who provide these loans have lower requirements than other business lenders. They are also typically given much faster than loans you could get from a bank. The tradeoff for these benefits is higher rates.
Seeking An Easier Option
It’s quite common for a business to look for an easier option when it comes to business financing. While it’s often great to wait longer for a bank loan, it’s not always feasible to do so. The wait times and high requirements have led to the rise of alternative lenders who are far faster and more forgiving.
If you are facing an emergency and need money fast, you will likely end up finding an easy business loan. A high credit score and strong business financial history won’t make a traditional lender hurry up enough to get you a loan during an emergency. But because higher credit scores can get you better rates, easy business loans are meant for a wide variety of borrowers.
The Catch
There is a simple catch with easy business loans – the ease and speed come at the cost of higher rates. You can expect higher interest or factor rates with easy business loans.
In some cases, you can also expect the total cost of a loan to rise because of sneaky or hidden fees. Easy business loans often carry prepayment fees, application fees, and other pesky fees. These fees can add up and, in some cases, drive the cost of a loan up the highest.
The Benefits Of Easy Business Loans
The easy business loans offered by many alternative lenders offer you a second chance when you hit a rough patch. Even the best businesses can go through turbulent periods. When this happens, you can get a fast and easy loan that only takes a few days to get. Many of these loans also loan money to borrowers with a credit score well under 600.
The easy business lenders we are talking about do truly make every step (aside from repayment) extremely easy. If you’re busy and don’t want to have to do a lot of talking and paperwork, you can benefit from 10-20 minute applications online. These applications require minimal paperwork. Easy business lenders are mainly concerned about your business’s recent financial history and your credit score. Many won’t reject you based on these factors, but they will use them to come up with the terms they want to offer you.
Where To Find Easy Business Loans
You will find the easiest business loans from alternative lenders with a strong online presence. These lenders will usually advertise their lower requirements. You can often find information on minimum credit scores and minimum revenues very quickly.
You will want to limit your search to the specifics you are looking for. For example, if your credit score is high but you’re in a big rush, some easy lenders will give you a better rate on a loan than they give most of their customers. However, some easy lenders only cater to the most distraught borrowers and thus only offer bad rates. It’s always best to make the most out of the cards you bring to the table.
Examples of Easy Business Loans
Here are some examples of lenders offering easy business loans.
OnDeck
OnDeck is an easy business lender with an application process that only takes about 15 minutes by phone or online. If you are eligible for one of their loans, you may find the funds in your account within 24 hours after applying in many cases.
The minimum credit score for an OnDeck loan is 600 and they require an annual revenue of at least $100,000.
| Lender | Minimum Revenue | Time in Business | Minimum Credit | Next Steps |
|---|---|---|---|---|
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$50,000/yr | 1 year | 560+ | See if you qualify |
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$100,000/yr | 1 year | 600+ | Request Intro |
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$25,000/yr | 3 mo. | 500+ | See if you qualify |
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$42,000/yr | 9 mo. | 550+ | See if you qualify |
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$75,000/yr | 2 years | 620+ | Request Intro |
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$10,000/mo | 3 mo. | n/a | See if you qualify |
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$10,000/mo | 1 year | n/a | See if you qualify |
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$15,000/mo | 6 mo. | n/a | See if you qualify |
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Varies | Varies | Varies | See if you qualify |
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$100,000/yr | 1 year | 500+ | See if you qualify |
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$100,000/yr | 6 mo. | 600+ | See if you qualify |
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$10,000/mo | 3 mo. | n/a+ | See if you qualify |
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$100K/year | 1 year | 600+ | See if you qualify |
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$10,000/mo | 6 mo. | 500+ | See if you qualify |
Kabbage: Easy Business Loans
Kabbage is one of the easiest business lenders to get a loan from. They serve a wide range of business lenders with their business line of credit. Requirements for a Kabbage business loan are lax. You just need an annual revenue of $50,000, or a monthly revenue of $4,200 for the last three months if your business is less than a year old. Apart from that, you need three months of business experience and a credit score in the mid 500s. Kabbage doesn’t state precise credit score requirements. They start cutting applicants off between 540-560, depending on other factors.
Kabbage has an online application that takes about 10 minutes to fill out. After that, they typically respond with an offer or rejection in the next few hours. If they send an offer you like and you accept it, they can have the funds in your business bank account in less than a day from when you applied.
Kabbage lines of credit can hold up to $250,000 in credit in some cases. Click here to see if you qualify for Kabbage.
