Have a business idea and want to see it come to reality as quickly as possible? Then, you are right in need of Emergency Business loans. Running out of time on execution and can not wait for regular verifications, sanctions, etc. for a business loan are some of the reasons why you end up taking emergency funds for your business. There may be any other form of emergency in your company like underestimation of a project's budget overestimating its profit, losing a client etc.
Facts about Emergency loans for your Business
Availing an Emergency business loan does not affect your credit score, but while applying your personal guarantee is a must. Approval of emergency business loans severely takes a day. After approval the transfer of funds happens within 1-8 business days. Unlike bank loans your credit history is not desired when you are applying for Emergency business loans. There is a threshold revenue that a business is to have, to avail an emergency loan for his / her business. Even though credit scores are not required they sometimes require a complete history of the business within the past year or some specified time period.
Sometimes emergency business loans may come with a higher rate of interests on the business loans as compared to the loans offered by a bank. This may lead you to search for other options for getting money for establishing your business or keeping it alive or in case of any other emergency.
Two of these many alternatives include:
· Line of Credit
If you happen to know the bank well, which handles your business account or you have a good relationship with them, then you can ask for a line of credit. Even though this is not an immediate approval of loan, it may turn out to be useful for financing your businesses future emergencies at a lower interest rates than those offered by emergency business loan providers.
· Friends or family
Even though people think lending money from your close friends or relatives ruin the bonds of relationship, it is advisable to ask for funds from them if all other options are ruled out and you know that the problem can certainly be solved with very little risk. These may be tricky to get but once you receive the funds, then repayment is something that can be adjusted at times.
It is a known fact that emergency money lenders are absolutely going to charge a high rate of interest when no one else is willing to provide a business loan in such emerging. And this is something you do not want to have at the moment when your business might already be struggling for its survival. Go for this only when you are confident enough that with this loan your business will flourish and it will generate enough revenue to repay the lender on time.
If your company is tough and has a solid history to give to the moneylenders then obtaining an emergency loan will not be as difficult as it would have been otherwise. Once you receive the funds, all you need to do is work hard and repay it in time