How Long Does It Take To Get A Business Loan?
If you need business capital fast for a time-limited opportunity, a lender can offer a snappy way to get the finance you need. But how long does it really take to get that approval?
How long will approval take?
If you go to a non-bank lender, provide great information in full and on time, it can take as little as 24 hours to get a business loan application processed, approved and the funds released.
This is a rare exception, however, and must be discussed with your lender beforehand. More often, it will be 2 to 3 days.
Other lending options will vary significantly, with regular banks sometimes taking weeks to get back to you.
What influences how fast my business loan application will take to approve?
How fast your application is processed depends on a variety of factors. The three primary ones are:
- Who you borrow from. Banks tend to be slower than non-banks as they have more complex internal processes, as more people need to sign off on the loan before it is approved or rejected. Smaller non-banks have fewer sign off requirements so can get the application processed more quickly.
- How good your previous borrowing behaviour has been. A poor personal or commercial credit score could mean that the lender has to take a closer look before making a decision. If you have a clean bill of financial health, there’s rarely a need for the additional checks.
- How complete the information you provide on the initial application is. If the requested information isn’t provided or can’t be provided, the lender will naturally have to ask again. This takes time and will slow down your application.
How can I make my application go faster?
If your business regularly has opportunities with short deadlines and you need fast finance regularly, you can speed up your application by keeping all the information your lender will need updated weekly or monthly. This will ensure that you don’t have to scramble to figure out the numbers when you apply and potentially slow down your application by getting something wrong.
Every lender will have slightly different information requirements, but here at GetCapital, we recommend keeping the following updated:
- Your ID and proof of address
- Latest financials and management accounts
- Bank statements
- Details of your company assets (vehicles, machinery, etc)
For more information about your options when seeking fast business loans, get in touch with the experts at GetCapital.