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When is a fast business loan right for your small business?

Success in business often hinges on taking advantage of opportunities when they arise. At these times, speed can be of the essence, and a fast business loan can be the solution that helps your business reach its full potential.

One of the big advantages that SMEs have over large companies, is their ability to act nimbly. With less red tape to cut through, opportunities can be seized when they arise. But this often calls for fast access to additional capital, or a rapid turnaround on a quick business loan. The stumbling block can arise when a lender drags the chain on finance.

A traditional small business loan from the bank can be a suitable option in some circumstances. But research by OnDeck shows that one in four small business have been knocked back for bank finance in the past.

Even if your business is approved for a bank loan, a long application and approval process can mean missing a golden opportunity.

OnDeck’s survey found that a quarter of SMEs that have applied to their bank for business finance, have been negatively impacted by the time taken to secure finance. That’s meant delays in filling orders or hiring new staff, and for 37% of these businesses the chain dragging has even seen normal business operations slow or grind to a halt.


Fortunately, in many circumstances, a quick answer to your loan application is available online. Online lenders, like OnDeck, can make a decision and have funding to you in as fast as one business day.

When do you need a Fast Business Loan?

While we understand that not all businesses are the same, there are common reasons why SMEs need a fast business loan:

Opportunities to buy discounted stock

An OnDeck study shows that over one-third of small business owners take out a business loan to pay for stock. All suppliers like to be paid sooner rather than later, and many offer discounts for prompt payment. So, it’s not very helpful if you have to wait weeks, to receive a loan.

A fast business loan can let your business take advantage of discounted inventory, and it can be a smart way to boost profit margins.

Expand your business

Whether it’s adding an outdoor seating area or leasing a larger space, physical expansion can help accommodate the growth of your business. Maybe that extra space next door is available, or a bigger storefront down the road is now vacant. The chance to expand can make it possible to secure more customers and generate more revenue.

However, the added expense might be something you hadn’t anticipated. As a result, quick access to capital can help you pull it all together and take advantage of an opportunity to get your business growing.

Hire new employees

Expanding your headcount can be essential to sustained growth. But it does bring additional staffing costs, and it can take time for your new recruits to get up to speed. When you’re ready to grow your team, it’s important you have adequate cash flow to cover the associated needs.

Maintenance Issues

Unexpected maintenance issues can arise at your business premises. These need to be fixed quickly, but whether it’s water leaks, electrical repairs or drainage problems, chances are you may not have factored the cost of repairs into your budget. You simply don’t have the time to wait around while the bank processes your application – something that can take weeks, possibly months. That’s when a fast business loan from an online lender is a great alternative.

These are only a few of the times when a rapid response to a request for business finance can be critical for your business. For information on what you can do to prepare your business for unexpected business costs, check out one of our earlier posts.

Fast Funding

We live in a world where we expect everything instantaneously, waiting just isn’t a priority. An Australian commissioned paper on trends in the Australian loan market, showed that a major attraction of online lenders is their “instantaneousness”.* As business owners don’t have endless time to spend searching and applying for a loan, a quick answer and fast funding is increasingly important to stay competitive.


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