While most small business owners try to save enough for emergencies, it’s not always possible to have enough cash on hand for major expenses. In light of the global pandemic, more business owners than ever are struggling to make ends meet.

The good news is that you may be eligible for a small business loan to cover unexpected expenses. Here’s how to get quick working capital for your small business.

1. Check your FICO score

First thing’s first: in order to qualify for most small business loans, your FICO score needs to be in decent shape. The higher your score, the better chance you’ll have at being approved for a loan with a lower interest rate.

FICO scores are based on five factors:

1. Your payment history.
2. Types of credit in use.
3. Current amount of debt owed.
4. Length of your credit history.
5. Any recent credit inquiries.

The reason why lenders take your FICO score into consideration is because it can give them an idea of how well you manage debt. In other words, a higher score means lower risk for the lender.

That said, if your FICO score is less than ideal, or if you don’t have much of a credit history, you can still obtain quick working capital for your business. You’ll just have to find a lender that provides unsecured loans. A major benefit of working with this type of lender is that you can often get funding in less than a week.

2. Think about what you’ll provide for collateral

In addition to requiring a high FICO score, many lenders will want you to provide collateral to back the loan. What exactly is collateral? It’s any asset that the lender can seize and sell in the event you stop making payments on your small business loan. This ensures the lender can get their money back if you can no longer make payments.

Possible assets for collateral include: inventory, real estate, equipment, stocks, bonds, and anything else that can easily be liquidated. If you don’t have collateral to back the loan, you can always apply for an unsecured business loan instead.

3. Search for available lenders

If you have a decent FICO score and adequate collateral, then you can apply for a small business loan at a traditional bank or your local credit union. Just keep in mind that traditional lenders have strict criteria you need to meet, including annual revenue requirements, no past bankruptcies, and of course, a high FICO score and enough collateral to back the loan.

What if you need cash now, and you can’t meet the requirements of traditional lenders? In this case, a lender that provides unsecured loans would be a better option.

At Hunter & Wolfinstein Services, we provide unsecured loans to small business owners, regardless of available collateral or prior bankruptcies. You can receive funding within 5-7 days, and we accept credit scores as low as 450.

Get quick working capital for your small business

The team at Hunter & Wolfinstein Services understands that it’s not always possible for small business owners to plan for major expenses. This is why we offer speedy loans without the strict requirements you’ll find at traditional lenders. We can approve most small business loans within 24-48 hours.

If you’re in need of quick working capital for your small business, you can start the loan application process here.