“I need a business loan fast!” Do you need emergency business funding or emergency business loans? Be forewarned! The marketplace for emergency funds for businesses is a very murky one. If you need emergency funds, chances are that you don’t have the time to wait around for a routine credit check and verification process by the loan issuing bank, a process that can easily take over a month.
This means that you have to secure your emergency funds from lenders who will process your loan based on unconventional variables, like your business’s cash flow strength. All emergency loan providers will use your business’s cash flow strength to decide if you receive a loan or not.
In some cases, such emergency business loans will require that a lien be placed on specifically agreed upon assets of the business, if your business’s cash flow isn’t sufficient as a guarantee. Your personal guarantee might also be required, though your personal credit score won’t be affected by the availing of such a loan. In this post, we will introduce you to OnDeck emergency business funding, one of the best providers of quick business loans. Unlike other lenders who solely rely on your business’s cash flow strength, OnDeck will be able to quickly process business loans or lines of credit based on your credit worthiness, with straightforward terms and very reasonable annual interest rates that can start as low as 9%.
Learn more about how you can apply and be approved for an OnDeck emergency business loan by reading a review of OnDeck loans. OnDeck has funded over $5 Billion in loans to small businesses just like yours! Applying takes all of 5 minutes and approval is handed in just a matter of minutes as well, with approved loans being funded in as little as 1 business day.
Need An Instant Emergency Business Loan?
Is Your Business Generating At Least $100,000 In Revenues a Year?
Is Your Business Based in the U.S.A?
Is Your Business At Least 12 Months Old?
Is Your Personal Credit Score At Least 500?
If you answered Yes to all the questions above, YES, you WILL qualify for an Emergency Business Loan between $5,000 and $500,000, from OnDeck.
Loans Dispensed in 1-7 Days
Annual Interest Rate as low as 9%, average at 30%
$5 Billion in Loans Funded
OnDeck Emergency business loans/funding
OnDeck is A+ rated (BBB) lender that has currently funded close to $5 Billion in capital to small businesses in the United States. It offers both business loans and lines of credits. OnDeck can award small business emergency loans as little as $5,000 and all the way up to $500,000. Their average loan award is for about $30,000.
The hallmark of OnDeck business loans is that you can know whether you can be approved or not in just a matter of minutes. If approved, issue of funds also happens quite quickly, with funds transferred to your account in just 1-7 business days, depending on various factors. Availing OnDeck loans will mean that you pay a origination fee. If you are a first time borrower at OnDeck, you will pay between 2.5% and 4% of the loan amount as origination fees. But, if you borrow from OnDeck again, loan origination fees can drop to as low as 0% and go up to a maximum of only 3%.
Considering that merchant cash advances are issued with APR% as high as 80% to 120%, OnDeck’s emergency loans are very affordable, even with the origination fee factored in, especially when you consider how quickly the loan is awarded, if you are approved.
OnDeck Emergency Business Funding/Loans – Know what you are getting into
- Emergency business loans are typically given to fund working capital requirements
- Your business receives funds in 1-8 days, if you qualify
- Your loan will be based on receivables or other such clearly identifiable incoming cash flow items
- Unlike banks, emergency business funding may provide you with funds that exceed 80% of your receivables
- Your credit history and FICO credit score might not be required at all
- Emergency business loans are usually given to businesses with at least $75,000 in annual revenue
- Emergency business funding is usually only provided to businesses that have a history of at least 9 months or in some cases, at least a year
- The documentation you will need to provide to secure emergency business funding will be;
- Business tax ID
- Three months’ business bank statements
- Business financials (Cash flow/Profit and Loss)
- Social security number of business owner or proprietor
- Driving license or another federally issued identification card
Cost of OnDeck emergency business loans
OnDeck charges an annual interest rate that can be as low as 9%. How does this translate into repayment. Well, let’s look at a simple example. Let’s say your business has excellent credit and financial strength and you manage to qualify for OnDeck’s premier annual interest rate of just 9%.
Now, if you borrow $50,000 from OnDeck, the 9% annual interest rate is simply calculated on the amount you borrowed. In this case, it is going to work out to $4,500. In essence, you will have to pay back $54,500 in a year, if you take this one year OnDeck business loan.
If your business financials aren’t perfect, you are still more likely to qualify for a OnDeck emergency funding, but only at a higher annual interest rate. OnDeck, on an average, issues emergency business funding at an average annual interest rate of about 30%.
Using the same example above, a $50,000 loan issued at a 30% annual interest rate will mean that you will have to pay back $15,000 (30% X $50,000) in interest costs and the principal of $50,000, which is a total of $65,000. You can learn more about OnDeck emergency small business loans here.
Other options you can consider for emergency business funding
As the above type of typical emergency business funding can be fairly expensive, it is recommended that you seek out alternatives that will allow you to secure funds quickly but also do it cost effectively.
Line of Credit
If you have a good working relationship with your bank that manages your business account, you can ask for a line of credit or an overdraft facility. Though this might not be arranged immediately if you need funds right this moment, it can be a fantastic way to fund future emergencies at much lower costs than when compared to the usual emergency funding products available out there.
Talk to your bank’s relationship manager to get this set up right away. Even if you don’t have a line of credit now and need emergency funds for your business right away, try still asking your bank for a line of credit. Depending on your history, the amount you want to borrow and your business’s financial strength, they can possibly process your line of credit in just 2-3 days.
If you were employed prior to starting a business or if you have a 401k even while doing business, it may be a good idea to take out a loan using your 401k as collateral. You can read all about a 401k loan here.
Friends and family
A lot of people are against lending money to family and friends, as it can easily ruin relationships if repayment doesn’t go to plan. But, if you sincerely think that you need the funds to get out of a jam that you know is very strictly temporary, without any or very little risk, there is no harm in asking family or friend for some timely help that you will return in the form of a repayment. Of course, this is a very personal choice and it is completely up to you to decide if this will be a prudent way to secure emergency funds for your business.
We hope we were able to help you a little with your search for emergency business funding. Please always remember that any lender who is willing to give you money quickly when others typically won’t will cost you in the form of high or very high interest. The last thing you want to do it take on new and expensive debt when your business is struggling to stay afloat. Only avail such emergency funds if you know for SURE that your business will generate enough cash flow to give you comfortable breathing space in the near term.