How long does it take to get a business loan?

Here's the average time it takes to get approved and funded, as well as what you can do, to speed up the process.

Time it takes for a Business Loan

There are way too many types of business loans to count, obviously, all of them have their own timeline. Though some offer same-day quick funding within 24 hours from the time you applied, while others take many weeks or even months. 

Bank loans

If you try to get a business loan with a bank it would take you fastest a couple weeks. Keep in mind, most businesses don't get approved at banks, as banks are very picky about who they give loans to. 

SBA Loans

To get an SBA loan you will need to work with an SBA lender, which could be a bank, credit union, or an online lender. The time it takes for an SBA loan approval can take as quickly as a few days, but the loan closing time usually takes 45 days. If you want to get the funds quickly, you can be sure that an SBA loan will not be the best fit.

Online lenders

Many online lenders can have you approved and funded within 24 hours of when you apply, a lender like Crystal Business Funding will simply require the last 3 months bank statements, and can give a loan approval based on those documents alone.

What to Expect From the Loan Process

Now that you understand how long it takes to get a business loan, you may be asking yourself what's involved in the process of approval and funding. 

First, there is an application process, where you'll need to fill out the application provided by the lender, if you're applying with an online lender the entire application will be completed online. Depending on the type of loan you're going for determines what documents you'll be required to provide. A bank or the SBA will want the last 3 years tax returns, while an online lender will simply need your businesses last three months bank statements.  Once an application has been submitted, the file goes to underwriting. This is where the lender assesses the risk involved in giving you business loan and decides to approve or disapprove your loan application.

Next is funding. If you get approved for a loan with an online lender, the money will be deposited in your account within an hour or two.

How to Speed Up the Business Loan Process

Although you can't control every aspect of the business loan process, there are some things you can do to expedite it. If you need business funding right away, follow these steps.

1. Choose the Right Type of Loan

As we previously said, some types of loans are faster than others. A traditional term loan or business line of credit from a bank will take longer than a loan with an online lender. If you can't wait too long for the money, be sure to apply with lenders known for quick approvals and funding. Keep in mind, loans with online lenders won't be as cheap as bank loans. And for good reason, if lenders would be as diligent as your local bank, the loan process would take a long time to get approved, and would probably decline most businesses just like most banks do.

2. Apply on a work day

Since most business owners have more free time on the weekends, that's when the majority apply for business financing. Try to fill out your application during the week, any time Monday through Friday. Lenders will be able to work on your application as soon as you apply.

3. Answer Questions in Time

Once you have applied for a loan, you may be contacted by the lender with inquiries. If this is the case, you will want to respond immediately. 

Conclusion

If you need the funding sooner than later, apply with an online lender like Crystal Business Funding. If everything goes smoothly, you can get approved within a couple hours if applying, and have the funds in your account shortly after that.