Same-Day Business Funding: 3 Best Options & Tips for Success

Key Takeaways:

• Same-day business funding offers quick access to capital for emergencies, growth opportunities, and operational expenses, with options like invoice factoring, short-term loans, and flexible lines of credit tailored to different business needs.
• While eligibility requirements for same-day funding vary, factors such as time in business, annual revenue, credit score, and collateral requirements play a significant role, along with necessary documentation like tax returns and bank statements.
• Despite the potential for higher costs, same-day funding is a viable solution for maintaining business continuity and seizing growth opportunities, with many loan providers offering fast approval and flexible terms to meet diverse funding needs.
• Certain providers, like OnDeck, BlueVine, and FundThrough can provide same-day business funding (after approval).

When an unexpected opportunity knocks or an unforeseen expense arises, the ability to secure funding quickly can be a lifesaver for a business. This is where same-day business funding steps in, offering small business owners, CEOs, and CFOs a way to keep operations running smoothly or grow their business without delay. According to the FDIC 2024 Small Business Lending Survey, 30% of banks overall can approve a small, simple loan in one business day. The number goes up to over 50% for large banks. The right option for you is out there!

But with so many small business financing options available and varying eligibility requirements, how do you determine the best business loan options for your needs? We’ve created this guide to help you understand the use cases, funding types, application processes, and tips for successfully securing same-day business funding.

Use Cases for Same-Day Business Funding

For most methods of funding your business, there aren’t restrictions on how you use the funding. However, there are a few situations where getting same-day business loans makes the most sense.

Covering Emergencies

Emergencies like equipment breakdowns, supply chain disruptions, or accidents can disrupt daily operations. Same-day business funding offers a quick fix, helping you address these challenges and minimize downtime.

Seizing Growth Opportunities

A big contract that would grow your business, discounted bulk inventory purchase, a prime real estate deal, or any other chance to expand your market presence could require fast capital. Same-day loans empower you to act on these opportunities without hesitation.

Meeting Payroll Obligations

If cash flow inconsistencies threaten to delay payroll, same-day funding ensures your employees are paid on time, maintaining trust and morale within your team.

Proving Solvency to Traditional Lenders

Demonstrating financial stability is crucial when applying for traditional loans or completing a successful bank review if you have an existing banking relationship. Accessing same-day funding can provide the necessary cash buffer to strengthen your balance sheet.

Attracting Investors with More Cash on Your Balance Sheet

A balance sheet that’s fluffed up with more cash on hand is appealing to investors. Securing same-day funding can enhance the look of your financials and make your company more attractive to potential investors.

Common Types of Same-Day Business Loans

Understanding your financing options is key to selecting the right type of loan for your needs. Here are five popular types of business loans that you could get same-day:

1. Invoice Factoring (A.k.a., Invoice Financing)

How it works: Sell your unpaid invoices to a factoring company in exchange for immediate access to cash.
Best for: Businesses with a lot of capital tied up in accounts receivable.
Pros: Quick access to funds tied up in pending invoices.
Cons: Requires contacting your customer to redirect invoice payments.
Common eligibility requirements: Minimum monthly revenue requirements; typically need invoices from creditworthy customers.
Additional documentation requirements: Client invoice details and proof of outstanding receivables.

2. Short-Term Loans

How it works: Lenders provide a lump sum upfront, which you repay over a short period, usually under 24 months. (Also known as working capital loans.)
Best for: Emergency expenses or planned expansions.
Pros: Fixed repayment structure makes budgeting predictable.
Cons: Higher interest rates compared to traditional loans; long approval process if you go with a traditional bank.
Common eligibility requirements: Minimum credit score of 500–600, steady revenue stream.

3. Flexible Business Lines of Credit

How it works: Draw as much or as little funding as you need against a revolving credit line, up to a preset limit.
Best for: Managing unpredictable expenses of varying dollar amounts.
Pros: Least expensive financing available.
Cons: Difficult for many small businesses to get approved; same-day funding only possible if it’s already set up.
Common eligibility requirements: Credit score of 625+, consistent revenue, three years of CPA prepared financials.

4. Equipment Financing (a.k.a., Equipment Loans)

How it works: Take out a loan to finance specific equipment purchases, often with a lien on the equipment as collateral until the debt is paid off.
Best for: Businesses needing new equipment that either can’t make the purchase outright, or shouldn’t do so to preserve their cash flow.
Pros: Equipment serves as collateral, making approval easier.
Cons: Risk of losing the equipment if you default on the loan.
Common eligibility requirements: Strong financials and industry-specific equipment needs.
Any additional documentation requirements: Can include equipment invoices, vendor details, and tax returns.

5. Merchant Cash Advances (MCAs)

How it works: MCAs provide a lump sum in return for a percentage of future credit card sales.
Best for: Businesses with high credit card transaction volumes.
Pros: No collateral required.
Cons: Daily or weekly payments can lead to falling into a debt cycle.
Common eligibility requirements: Consistent daily credit card transactions.
Any additional documentation requirements: Credit card statements.

Basic Eligibility Criteria

While eligibility requirements vary by lender, they typically include:

• Time in Business: For some options this can be as low as 3 months; many lenders require 6–12 months. (See this article about loans for startups if your business is less than 3 months old.)
• Annual Revenue: Many alternative lenders don’t have annual revenue requirements. For ones that do, it often falls between $100,000 and $250,000.
• Credit Score: Ranges from 500 (for bad credit lenders) to 625+ for competitive rates. Business financing that doesn’t require a credit check, like merchant cash advances and invoice factoring, don’t have credit score requirements.
• Industry Type: Some lenders specialize in certain industries or don’t work with ones they consider high risk. For example, FundThrough doesn’t work with real estate or construction.
• Collateral Requirements: Some funding options may require collateral, such as an equipment lien, or personal guarantees. (With invoice factoring, the funding is secured by the unpaid invoice.)

Documentation Requirements

To speed up the process, prepare or gather the following documents in advance. These are basic documents you’ll likely need for many types of financing:

• Business bank statements (and possibly even personal bank statements).
• Tax returns.
• Proof of ownership and business licenses.
• Profit and loss statements.
• Your government issued photo ID
• Business plan

Additional documentation required for specific same-day business loans is noted in the section above.

Tips for a Successful Business Funding Application

• Have a Clear Business Purpose for the Funding. Lenders favor applicants with specific plans for using borrowed funds, whether it’s to purchase inventory, cover operational expenses, or invest in growth.
• Check Your Credit Report. Your credit score plays a role in determining eligibility and interest rates. Businesses can either improve their credit profiles by paying off outstanding debts before applying or focusing on options that don’t require a credit check.
• Apply Early in the Day. The sooner in the day you apply, the sooner you could get a same-day disbursal of funds.
• Have a plan (and even a back-up plan) for repayments. Understanding the repayment schedule and knowing exactly how you’ll meet it, as opposed to a loose idea, will ensure you avoid falling into a debt cycle. It’ll also help reduce your stress–a chronic issue for small business owners and CEOs!

How to Compare Different Funding Options

When evaluating offers, focus on these aspects:

• Funding Speed: Does the lender guarantee same-day delivery?
• Repayment Terms: Short-term loans may have higher installment amounts with monthly payments; frequent MCA repayments can quickly snowball out of control.
• Interest Rates: Convert “factor rates” into annual percentage rates for easy comparisons.
• Fees: Watch out for origination fees, maintenance charges, or prepayment penalties.
• Customer service: For any same-day business loan you’re considering, make note of how quickly the lender processes your application and responds to requests. Their professionalism in working with you in important as well.
• Long-term potential: Many lenders can help you out beyond offering same-day business loans. Consider whether they would be a good long-term partner for your business.

Steps to Apply

These are the general steps you can expect for most same-day business loan applications. Online lenders often have the most streamlined application process and flexible terms for financing solutions.

1. Evaluate Your Timeline: Determine how urgently you need the funds. Faster funding can come with higher interest rates.
2. Determine the Loan Amount Needed: Avoid borrowing more than necessary to keep repayment manageable.
3. Research Your Options: Compare lenders offering same-day funding that you would likely approve you.
4. Review the Terms: Ensure interest rates and repayment terms align with your business capabilities.
5. Complete the Application: Many lenders offer online applications designed for efficiency.
6. Provide Necessary Documents: Depending on the lender and your situation, you might be asked for additional documentation on top of typical requirements. Missing paperwork can delay approval.

Best Same-Day Business Loan Providers

FundThrough

Best for: Invoice factoring.
Loan Amounts: Unlimited, for as much as you have in eligible invoices
Repayment Terms: Your customer pays the invoice on net terms, often 30, 60, or 90 days. (Sometimes even 120 days.)
Unique Features: No minimum credit score required.
Pros: Quick funding for outstanding invoices.
Cons: Only available for B2B companies.