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What Is The Fastest Finance Option For A Business?

Lost out on a business opportunity because you couldn’t get the capital fast enough? You’re not alone.

Almost a fifth of SMEs have missed at least one new opportunity in the past 12 months due to a lack of available funding. That’s cash left on the table because of a lack of capital in the bank. This could mean:

  • Missing out on limited stock because of lack of cash flow
  • Missing out on a new bid because of lack of equipment
  • Missing out on a rush of new clients because of a lack of staff or expertise

You can avoid falling into this trap by ensuring you know where you can go to get the funding you need and keep growing your company. But which of the common business financing options is the fastest? Here’s our breakdown.

 

Not sure what your options are with business finance? Start with our guide to getting capital – fast.

 

Venture capital

Venture capitalists are excellent partners for a business in need of funding, but they’re  aren’t always fast. They must do their due diligence on the business, the project needing funds and the directors (that’s you) as they are beholden to their stakeholders for the success of their investments. This process takes time, and if you don’t already have an established relationship with them, your deadline may have passed by the time they release funds.

Speed: Slow

 

Angel investors

Angel investors are putting their own capital into your hands, so it makes sense that they want to ensure they will get significant return on their investment. But you will likely need to make several rounds of presentations to get their approval. That takes time – time you most likely won’t have.

Speed: Slow

 

Banks

The major banks are often the first port of call for businesses looking for finance. The size of their wallets and the stability of their accounts mean banks can offer favourable terms, but this also means they aren’t particularly fast. The internal bureaucracy of a bank slows down any application to a crawl, potentially taking weeks or even months to get back to you before you even know if you’ve been accepted.

Speed: Moderate

 

Crowdfunding

Crowdfunding sites like Kickstarter and GoFundMe have many stories on new projects that have achieved tens of thousands of dollars of funding in just a few hours. But these cases are rare, and can’t be relied upon. Moreover, these platforms tend to perform better in the early stages of funding where you can inspire grassroots support for your business or product, rather than trying to fund the more mundane hiring of new staff or buying new equipment.

Speed: Variable

 

Non-banks

Non-banks are usually the fastest place to get business capital from for one simple reason: the lack of bureaucracy. A non-bank lender will do many of the same checks a bank does, often more, but because they are more nimble, with fewer people who need to see the application, the process can be a lot faster: sometimes as fast as a 24 hour turnaround, or 2 to 3 days otherwise. You can speed up the process with the tips presented in our guide to speeding up the loan process.

Speed: Fast

 

If you need fast business capital, there are a number of options available to you – but not all funding sources are quick off the mark. For more information on getting business capital before the deadline hits, get in touch with the experts at GetCapital,