How Long Does It Take to Get a Business Loan?

Every small business owner will, at some point, want to get a business loan to boost their working capital. And in the world of fast-paced commerce, you don’t want that loan process to take forever. 

Unfortunately, your timeline may not align with your lender’s. Therefore, it’s crucial to understand how long it can take you to acquire a business loan, from submitting your application until the money is in your hands. If you’re in an extreme time crunch, there are solutions, like same-day small business loans, that can help the process move faster. 

Here are answers to a few of your pressing questions about how long the business lending process typically takes. 

How long does it take to get a business loan?

On average, the loan application process takes between a few minutes (about fifteen) to several months (typically six). However, the waiting period varies from one lending institution to another and depends on several factors. 

SBA is an example of a lending institution offering various loan programs, each of which has a different approval time. For example, it takes about five to ten days for your SBA 7(a) loan to process. On the other hand, SBA Express loans are faster, with a turnaround of approximately thirty-six hours.

Other lenders have their timelines as well. Funding Circle, for instance, takes one day to approve a P2P term loan and three days after approval to fund you. Kabbage offers a Line of Credit and may take a few minutes to approve your loan. 

Different lenders will take varying times to make funding available to you. Like the application process, the time until funds are available depends on various factors. 

What factors affect how long it takes to get a business loan?

Some variables account for the wide range in loan approval and funding timelines. Technology has made it easy for lenders (both online and banks) to approve and fund loans faster. Other factors affecting approval and funding timelines include the following:

• The qualifications your lender requires
• Your efficiency in submitting your loan application documents
• When you submit your loan application

While these are critical for the process, the lender you apply with and the type of loan you want have the most significant impact on the loan you will receive. 

Can you speed up your business loan?

Considering the above factors, you can take measures to expedite your business loan application and receive funding faster. One of the best strategies is to get a same-day small business loan.

Same-day small business loans come with advantages because you can secure funding quickly and acquire items to keep your business running the same day.

Other ways of speeding things include:

• Submitting your application on a weekday
• Answering emails and phone calls from your lender promptly 
• Choosing electronic funds transfer or deposit

Some lenders make this financing available where you apply for funding, get approval, and receive money the same business day.

Wrap-up

How long it takes to get a business loan will depend on several factors. And while it’s not easy to control most of these things, you can help speed things up by initiating various strategies. Plan ahead, and you may receive a business loan approval and funding within a day. Otherwise, you may have to wait for weeks or even months until you hear back about your application.