The 7 Best ERC Companies For Getting Your ERC Funds
Read More Mar 8, 2023 Filed under: Accounting, Bookkeeping, Invoicing, Small Business
Best Emergency Business Loan Options For Your Small Business
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Expert Analyst & Reviewer
UPDATED
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
No matter how good you are at planning, it’s impossible to prepare for every possible emergency that may affect your business. Acts of God such as hurricanes, floods, and fires aside, invoice payments might be late. You may have experienced a fluke sales slump. Or maybe you need to restock before a big event next week to maximize your sales.
You’ve already shaken out your pants for loose change, so now what do you do? Where do you look for an emergency business loan?
Read on, and we’ll try to help you out. Here are seven ways to get business funding fast.
Need more information and resources geared toward small business owners during this Coronavirus (COVID-19) pandemic? Please check out the resource hub we've created.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
OnDeck  | Best for an emergency business line of credit. | Best for an emergency business line of credit. |
Fundbox  | Best for same-day business funding. | Best for same-day business funding. |
Lendio  | Best for an emergency business term loan. | Best for an emergency business term loan. |
Riviera Finance  | Best for funding unpaid invoices. | Best for funding unpaid invoices. |
Read more below to learn why we chose these options.
Table of Contents [hide][show]
- Best Emergency Loans For Small Businesses
- 1. OnDeck: Best For An Emergency Business Line Of Credit
- 2. Fundbox: Best For Same-Day Business Funding
- 3. Lendio: Best For An Emergency Business Term Loan
- 4. Riviera Finance: Best For Funding Unpaid Invoices
- Funding Options For COVID Relief & Other Disasters
- 4 Tips For Getting An Emergency Business Loan
- Get The Right Emergency Loan For Your Business
- In Summary: Best Emergency Loans For Small Businesses
Table of Contents
Best Emergency Loans For Small Businesses
The best emergency loan options will vary from business to business, as each small business has its own unique needs and challenges. With that in mind, here are a few good options if you need a loan in an emergency.
1. OnDeck: Best For An Emergency Business Line Of Credit
OnDeck |
|---|
OnDeck offers both fixed-term business loans and business lines of credit.
While OnDeck isn't the cheapest way to get a line of credit (APRs range from 19.9%-61.9%), its fast application process and relatively low borrower requirements make OnDeck a solid option to fall back on.
Credit limits range from $6,000 to $100,000, with repayment terms of six months with no draw fees. You'll have a slightly less punishing repayment schedule than you would with most short-term loans with weekly, rather than daily, payments.
Pros
- Borrower qualifications are lower than a traditional bank’s would be
- Lower costs for repeat customers
- The application process is fast and easy
- Funds are disbursed quickly
Cons
- Financing isn’t available in some states
- Not available to businesses in some industries
- Rates can be expensive
2. Fundbox: Best For Same-Day Business Funding
Fundbox |
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Sometimes your emergency can't wait even a single day. While many online lenders are fast, far fewer can get you your money on the same day you apply. Fundbox is one of the lenders that can pull it off.
Though not the cheapest option, Fundbox is willing to work with most borrowers. You only need to have a credit score of 500+. The quick and easy application process is done by linking your accounting or invoicing software. Fundbox then uses your activity on that software to evaluate your account.
You can borrow up to $100,000 through Fundbox, with term lengths of 12 weeks or 24 weeks. Flat rates start at 4.66%.
Pros
- Quick time to funding
- A fast and easy application process
- Low credit score requirements
Cons
- Rates can be expensive
- Frequent repayments are required
3. Lendio: Best For An Emergency Business Term Loan
Lendio |
|---|
Getting a more traditional term loan during an emergency can be tricky, as they frequently have slower application vetting processes. One way to maximize your chances of getting the loan you need quickly is to use an aggregator service such as Lendio. Lendio doesn't originate its own loans. Instead, it passes your application through its network of lenders to find a fit.
Lendio's borrowing qualifications are easy to meet. You just need to have been in business for at least six months, have a credit score of 550, and monthly revenue of at least $10,000. Lendio does not charge borrowers for using its service.
You're looking at, on average, a day or two to get your money through Lendio, so keep that in mind if you need the money immediately.
Pros
- Borrower qualifications are lower than a traditional bank’s would be
- High borrowing amounts
- Long-term financing options available
- The application process is fast and easy
Cons
- Rates can be expensive
- Not as fast as some other options
4. Riviera Finance: Best For Funding Unpaid Invoices
Riviera Finance |
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One particularly frustrating scenario in an emergency is when you have money due to come in, but your invoices haven't been paid yet. It turns out that you can get an advance on those invoices through invoice factoring. Essentially, you're selling your unpaid invoices to a factoring company at a small discount. If you're in a hurry, one of the best companies to do this with is Riviera Finance.
Riviera Finance can buy up to $2 million of your unpaid invoices, paying 95% of their value upfront. Riviera Finance then goes to work on trying to collect on the invoices. Discount rates — the amount Riviera Finance keeps from every settled invoice — start at 2%. Riviera Finance is a non-recourse factoring company.
Pros
- No credit score requirements
- Competitive terms and fees
- Easy application process
- No monthly minimums
Cons
- Unsuited for B2C businesses
Get Started With Riviera Finance
Funding Options For COVID Relief & Other Disasters
Some emergencies are beyond simple disruptions (such as equipment breaking). Sometimes, they fundamentally affect your ability to earn revenue, which in turn can make it impossible to service debt effectively. Of course, when we’re talking about emergencies in 2020, few loom as large as the COVID-19 pandemic.
If you’re affected by a disaster, you’ll often be better served by taking advantage of programs offered through government agencies. Your options include:
- SBA Economic Injury Disaster Loan (EIDL): EIDLs are reserved for small business owners facing financial hardship due to a disaster. These loans have very low-interest rates and long terms. In some cases, as with the Paycheck Protection Program (PPP), these loans may even be forgiven under specific circumstances.
- SBA Physical Damage Loans: SBA Physical Damage Loans are reserved for business owners (and homeowners) whose private property has been physically damaged as the result of a disaster. These loans have repayment periods of up to 30 years, with interest rates under 4% for businesses that can’t get credit elsewhere.
- State & City Loans & Grants: Depending on where you live, you may be able to tap one of the many state and/or local programs designed to help businesses. Many of the COVID-related programs have exhausted their funding, but a new round of federal stimulus could change what’s available.
4 Tips For Getting An Emergency Business Loan
When you’re looking for emergency funding for your small business, you don’t have a lot of time to weigh your options the way you would during normal times.
Here are some tips for when time is of the essence:
- Get The Right Type Of Loan: Some types of loans disburse much faster than others, but that’s only one part of the picture. Consider the repayment schedules and whether your business will bounce back quickly enough to service your debt. You don’t want to compound your emergencies.
- Get An Online Loan: There are some very good reasons to stick with traditional banks. They offer better rates and longer terms in most cases. But what they don’t usually offer is speed. Online loans, on the other hand, are designed to be fast and easy to apply for. If there’s ever a time where that model shines, it’s when you need money quickly.
- Avoid Scams: Desperate people make good marks, which is something you don’t want to be. While you may be in a hurry, make sure you’re dealing with a reputable lender. Read reviews of the company on sites such as Merchant Maverick, and search for user reviews to see what the lender’s reputation looks like.
- Understand The Cost Of The Loan: Loans can be complicated, especially since the lending industry is notorious for hiding costs. Remember that you’re effectively buying money for more than it’s worth, and be sure to ask about any fees involved beyond interest. Make use of online tools to evaluate your offer.
Get The Right Emergency Loan For Your Business
There’s no shortage of options for getting emergency small business loans. The trick is making sure you get it on the schedule you need at a rate you can afford.
Not sure where to start looking?
We can help you out.
| Loan Type | What Is It? | Typical Time To Funding |
|---|---|---|
Short-Term Business Loans | Loans disbursed in one lump sum and repaid in periodic, fixed installments. Fees for borrowing are determined by a factor rate. | 2 - 5 days |
Online Lines of Credit | Credit lines from which the business can draw funds at any time, without going through an application process. | 2 - 7 days for the initial application; 1 - 2 days for funds when the credit line is secured |
Invoice Financing | Financing in which the business's unpaid invoices are leveraged to access business funds. | 2 - 5 days |
Bridge Loans | Fast business loans used to fulfill funding needs until slower financing comes in. | 2 - 7 days |
Traditional Installment Loans | Loans disbursed in one lump sum and repaid in periodic, fixed installments. Borrowing fees are determined by an interest rate. | 1 - 3 weeks |
Business Credit Cards | Credit lines for everyday business expenses. | About 7 days |
SBA Disaster Loans | Loans offered by the SBA to businesses that have been affected by a disaster. | 7 - 21 days |
In Summary: Best Emergency Loans For Small Businesses
- OnDeck: Best for an emergency business line of credit.
- Fundbox: Best for same-day business funding.
- Lendio: Best for an emergency business term loan.
- Riviera Finance: Best for funding unpaid invoices.
Chris Motola
Expert Analyst & Reviewer at Merchant Maverick
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
View Chris Motola's professional experience on LinkedIn.
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