So you’ve finished applying for your small business loan and now it’s time to play the waiting game. This can be one of the most stressful periods for your business, waiting to find out whether or not you’ll be approved.
Whether you need the money for day to day expenses, payroll, safety cushion, or expansion; you’re most likely wondering when you’ll hear back about your loan.
The answer to this question depends on the type of loan that you’ve applied for. Different lenders have different requirements, processes, and overall lending power. Some may only take 24 hours to hear back on, while others may take several months to hear anything at all.
Most Common Time Lines for Small Business Loans
When you apply for a loan, you should have a very clear idea of what you will spend the money on. The amount of cash that you need and what you need it for will dictate which loan type is most appropriate for you to apply for.
- Bank Loans- Bank loans typically take anywhere from 60 to 90 days to make a final decision on your loan application. It can, however, take even longer. Bank loans are a prime option for existing small businesses that need a little cushion or help with day to day expenses.
- Micro Loans- Microloans timelines can vary quite drastically. You could hear back in a matter of days if your loan needs are simple and you’ve provided all of the necessary paperwork and info. If your needs are a bit more complex, however, or require the lender to assess assets such as a home office, work vehicle, etc. this can set your application back by weeks or even months.
- Online Loans- These loans have a much quicker; and higher; rate of payout. As long as you provide all of the appropriate paperwork and information, you could hear back within 24 hours.
- Express Loans- Need cash in a hurry? There are express loans available for certain circumstances, such as disaster relief. These loans are processed very quickly, meaning you could be approved within 1-2 days.
No matter what your credit needs, there’s a viable solution to your financial problems. If a small business loan doesn’t seem right for you, perhaps you should consider the benefits of investors or grants. You might have to do a bit of research to find the right solution, but all of your hard work will pay off in the form of a thriving and successful business!