Personal loans generally have a faster application process than business loans. Most personal loan lenders now offer a pre-qualification process, which allows you to see if you’re eligible without completing a full application. If you want a business loan, it might take weeks before you have your funds. Some lenders may require you to put up collateral, such as real estate or equipment, to secure your loan. You should provide information about the type of collateral you’re offering and how much it’s worth. It can be helpful to get an independent auditor to value your collateral before applying for a business loan. Bank and SBA lenders are more likely to require collateral than online lenders.

How can I get a business loan with no money?

Collateralization is the use of a valuable asset to secure a loan against default. The collateral can be seized by the lender to offset any loss. Full BioSuzanne is a content marketer, How Can I Get a Business Loan writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands.

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If your existing loan has high interest rates and payments that eat into your cash flow, refinancing could be a good option. Ideally, your refinanced loan will offer better terms that make paying off your debt more manageable — and open up cash flow for your business. If you’ve improved your credit score, annual revenue or time in business, you may be able to qualify for a loan with better rates and terms. If you refinance, you’ll hopefully be able to make your business debt more affordable. Usually, if you’re putting up collateral, it’s to compensate for not having a high enough credit score or being in business for a short time. Going with a collateral loan may allow you to get a lower interest rate than an unsecured loan.

A merchant cash advance lets a business owner borrow cash against future sales receipts. This form of business financing is often available through payment processing and merchant services companies, and lets business owners access cash without applying for a traditional loan. The business credit score needed to qualify also varies from lender to lender. Plus, it depends on the type of loan you’re applying for and what business credit score a lender uses.

Compare lenders to find financing that works with your timeline while also offering competitive rates. Traditional lenders can take weeks or months to approve a business borrower for a loan. In contrast, fast business loans from alternative lenders are often approved within minutes. If you’re on a tight timeline, compare lenders based on how quickly they review and approve applications.