What are the Fastest Ways to Get Funding as a Small Business?

Small businesses are the bread and butter of the American economy. Many people are surprised to hear that 99.9% of businesses in the United States are small businesses. They employ an average of 56.4 million workers and bring in $16.2 trillion in revenue. 

That said, it’s not an easy time for owners. If you run a small business, you know how difficult it can be to get funding on an urgent basis. You’re often waiting several weeks, and sometimes, even months, for approval. There are simply too many opportunities and emergencies that cannot wait such long periods of time.

Even if you’ve never been in such a situation before, you never know when you might suddenly need quick funding. There are countless situations in business ownership that require fast access to capital. In this article, we will look at why fast funding is important, along with where to find it. 

Why Would a Business Need Funding Quickly?

There are countless reasons, but we’ll start with the most common one: cash flow issues. Perhaps you have a stack of invoices that will only get paid in two weeks, but payroll is tomorrow. You can’t just tell your employees to wait. That’s doing a speed run into breaking labor laws and getting sued. 

This type of scenario happens often enough that it has spawned the line of credit funding model. But let’s look at another example. Perhaps your supplier has your usual order available at a big discount. This is one of those time-sensitive scenarios, as each hour you delay, it gives your competitor the chance to claim the discount. 

Unfortunately, as data from the Small Business Index notes, 51% of small business owners were not satisfied with their access to capital or loans. In fact, 69% of these entrepreneurs used their own personal savings to fund their businesses. 

Thus, it’s critical that small business owners understand what their options are and where they can receive fast funding from.

Who Should Small Businesses Approach for Funding?

When you think of getting funding, who do you think of? For most people, the answer tends to be banks, which are typical, traditional lenders. However, the biggest drawback with them is that even if you have a good credit score and a solid business track record, their approval process takes time. 

Sometimes, the underwriting process alone can take weeks. Your urgent requirement for fast business cash cannot wait if you hope to run a growth-focused business. So, traditional lenders might be disappointing in this regard.

That said, as Fast Business Financial notes, alternative lenders offer funding as quickly as a 24-72 hour window. They also tend to focus on aspects like your overall business health and factors like cash flow, rather than rigid metrics like credit scores. 

The Federal Deposit Insurance Corporation highlights data from the 2024 Small Business Lending Survey Report. They note that three in four banks approve small business loans within 10 days. It’s no wonder that the survey found that competition between banks and credit unions and FinTech companies is growing. 

Internal Steps That Can Also Help

Sometimes, your funding solutions can come from within as well. You’d be surprised at how much liquidity you can free up internally before looking at loans or advances. One tactic is to accelerate your receivables. What does that mean? Well, you simply offer customers a discount if they pay early. 

This can make a big difference if you’re in the service field where partial payment models exist and you don’t get 50% till the end. Likewise, if you believe yourself to be a good negotiator, consider having conversations with your suppliers. If you can strike deals to extend payment terms by even one month, it gives you some extra breathing room. 

Lastly, if possible, try investigating if there are any inefficient aspects in your operation that are bleeding money. These may include marketing campaigns that can be postponed or even subscription services that you forgot to drop. 

Many services charge more for business when compared to consumers, so you could be losing several hundred dollars every month through simple oversight. If consumers are losing money on subscriptions, the same holds true for businesses. 

All things considered, access to fast funding is critical for any business, but it can make or break smaller operations. Larger operations tend to have budgets that they can dip into for sudden purchases, but that’s a luxury you may not have. Thankfully, alternative lenders can save the day and help you take advantage of all the opportunities you might miss otherwise.