When you need money for your business, you might not be happy about playing the waiting game. However, in many cases, it can take up to 60 days before your funds are disbursed. Different types of loans take longer to approve than others, and having the right expectations can make the process go smoother. Anyway, if you`d decided to go smarter with personal loans in Canada, you`ve chosen the best option to grow the business.
Traditional Term Loans
When it comes to traditional term loans, there are many different things that can affect the time it takes to get your money. For the most part, once you have provided a complete application along with all of the required documentation, a loan officer can get you a preliminary approval in about seven days. However, keep in mind that after you receive this approval, your loan will still need to go through an underwriting process. During this time, a group of individuals reviews all of the information you have provided for discrepancies. If anything is amiss, the process could be delayed. On average, it takes between 30 and 60 days for you to receive your money after you complete your application. Do you need to know additional requirements? Don`t hesitate and check loans in Canada right now so you can start your preparations earlier.
A merchant advance is different than a traditional term loan because you will not have to provide things like business plans and credit reports. In fact, most merchant advance providers do not even check your credit. Rather, they go by the amount of credit card sales you have each month over time to determine your ability to repay a loan. What’s more, because you will repay your loan with a percentage of your daily sales, there is very little risk for the lender. Because of this, it only takes a couple of days to find out whether you are approved for a merchant advance, and you can have the money in your account in as little as three business days.
Approvals for private loans can take anywhere from three to 30 days depending on the lender and its processes for providing you with that approval. For example, you could submit the same application package to three different lenders and receive three different approval times for your existing business.
- Lender 1 – This lender does not require a credit score or a business plan, and instead only asks for access to bank statements to verify your revenue. You could receive approval and funds in as few as three days.
- Lender 2 – This lender asks you for a credit score, but the results do not weigh heavily on the approval process. In this case, you may have your funds in as little as a few days or in as long as a couple of weeks.
- Lender 3 – This lender utilizes a complex underwriting process that will take some time to complete. You might be approved in just a few days, but it could take as long as 30 (or more) before you have access to your funds.
For the most part, the time it takes to get approved for a business loan depends on your unique circumstances and the lender’s processes for approving you. Term loans and merchant advances from Smarter.loans are always quick and easy, so if you need a fast approval and fast funds, there’s no better way to obtain them.