How Long Does Business Funding Take?
The timeline from application to funds in your account varies dramatically depending on the type of funding you're pursuing. Understanding these timelines helps you plan ahead and choose the right funding type for your urgency level.
Funding Speed Overview
Quick Reference Chart
| Funding Type | Application to Approval | Approval to Funding | Total Timeline |
|---|---|---|---|
| Merchant Cash Advance | Same day - 24 hours | Same day - 48 hours | 1-3 days |
| Revenue-Based Financing | 24-72 hours | 24-48 hours | 2-5 days |
| Invoice Factoring | 3-7 days (setup) | Same day ongoing | 3-7 days initial |
| Online Term Loan | 1-7 days | 1-3 days | 2-10 days |
| Equipment Financing | 3-7 days | 1-3 days | 4-10 days |
| Bank Line of Credit | 2-4 weeks | 1-3 days | 2-5 weeks |
| Traditional Bank Loan | 3-8 weeks | 3-7 days | 4-10 weeks |
| SBA Loan | 6-12 weeks | 5-10 days | 6-14 weeks |
Fastest Funding Options
Merchant Cash Advance (1-3 Days)
MCAs offer the fastest path to capital, often with same-day decisions.
Timeline Breakdown:
| Stage | Timeline | What Happens |
|---|---|---|
| Application | 15-30 minutes | Online application, basic info |
| Documentation | 1-4 hours | Bank statements, processing statements |
| Underwriting | 2-24 hours | Automated analysis |
| Approval/Offer | Same day | Terms presented |
| Closing | 1-2 hours | E-sign documents |
| Funding | Same day - 24 hours | ACH transfer |
Factors That Speed Up MCA:
- ●Clean bank statements (no NSFs)
- ●Consistent deposits
- ●Complete documentation upfront
- ●Clear processing statements
- ●Responding quickly to questions
Factors That Slow Down MCA:
- ●Incomplete documentation
- ●Bank statement issues
- ●Existing funding obligations
- ●Verification challenges
- ●Weekend/holiday applications
Revenue-Based Financing (2-5 Days)
Similar to MCAs but often with a slightly longer underwriting process.
Timeline Breakdown:
| Stage | Timeline |
|---|---|
| Application | 20-45 minutes |
| Documentation | Same day |
| Underwriting | 24-72 hours |
| Approval | Day 2-4 |
| Funding | Day 3-5 |
Mid-Speed Options
Invoice Factoring (3-7 Days Initial Setup)
Initial setup takes longer, but ongoing funding is rapid.
Initial Setup Timeline:
| Stage | Timeline |
|---|---|
| Application | Day 1 |
| Due diligence | Day 1-3 |
| Customer verification | Day 2-5 |
| Account setup | Day 4-7 |
| First funding | Day 5-7 |
Ongoing Funding (After Setup):
| Action | Timeline |
|---|---|
| Submit invoice | Anytime |
| Verification (if required) | 2-4 hours |
| Funding | Same day - next day |
Online Term Loans (2-10 Days)
Online lenders have streamlined processes compared to banks.
Timeline Breakdown:
| Stage | Timeline |
|---|---|
| Application | 30-60 minutes |
| Documentation | Same day |
| Underwriting | 1-5 days |
| Approval | Day 2-7 |
| Closing | 1-2 days |
| Funding | Day 3-10 |
Factors Affecting Online Loan Speed:
- ●Loan size (larger = longer)
- ●Documentation completeness
- ●Credit quality
- ●Industry risk level
- ●Verification requirements
Equipment Financing (4-10 Days)
Equipment deals move faster than general term loans because the equipment provides collateral.
Timeline Breakdown:
| Stage | Timeline | Notes |
|---|---|---|
| Application | Day 1 | Include equipment details |
| Quote submission | Day 1 | From vendor |
| Credit review | Day 1-3 | Soft pull usually |
| Approval | Day 2-5 | Terms confirmed |
| Documentation | Day 3-7 | Loan docs, insurance |
| Funding | Day 4-10 | Direct to vendor or you |
Slower Funding Options
Bank Line of Credit (2-5 Weeks)
Traditional bank lines require more thorough review.
Timeline Breakdown:
| Stage | Timeline |
|---|---|
| Application & documentation | Week 1 |
| Financial analysis | Week 1-2 |
| Credit committee review | Week 2-3 |
| Approval/negotiation | Week 3-4 |
| Documentation & closing | Week 4-5 |
| Funding available | Week 5 |
Why Banks Take Longer:
- ●Manual underwriting processes
- ●Multiple approval levels
- ●More documentation requirements
- ●Regulatory compliance checks
- ●Collateral verification
Traditional Bank Term Loan (4-10 Weeks)
Bank term loans, especially larger ones, involve thorough due diligence.
Timeline Breakdown:
| Stage | Timeline |
|---|---|
| Pre-qualification | Week 1 |
| Full application | Week 1-2 |
| Underwriting | Week 2-5 |
| Credit committee | Week 4-6 |
| Commitment letter | Week 5-7 |
| Legal documentation | Week 6-8 |
| Closing & funding | Week 7-10 |
SBA Loans (6-14 Weeks)
SBA loans involve both lender and SBA review, extending timelines.
Timeline Breakdown:
| Stage | Timeline | Notes |
|---|---|---|
| Pre-qualification | Week 1-2 | Initial eligibility |
| Application assembly | Week 2-4 | Gathering extensive docs |
| Lender underwriting | Week 4-8 | Full financial analysis |
| SBA authorization | Week 6-10 | SBA reviews for guarantee |
| Closing preparation | Week 8-12 | Legal, insurance, collateral |
| Closing & funding | Week 10-14 | Final signatures, disbursement |
SBA Express Loans (Faster):
- ●36-hour SBA response time
- ●Total timeline: 3-6 weeks
- ●Maximum $500,000
- ●Delegated authority
What Determines Speed?
Factors You Control
| Factor | Impact | How to Optimize |
|---|---|---|
| Documentation readiness | High | Prepare before applying |
| Response time | High | Answer requests immediately |
| Application completeness | Medium | Fill everything accurately |
| Bank statement quality | Medium | Avoid NSFs, maintain balance |
Factors Lenders Control
| Factor | Impact | Notes |
|---|---|---|
| Underwriting capacity | High | Some lenders are faster |
| Technology/automation | High | Fintech > traditional |
| Risk appetite | Medium | Easier approvals = faster |
| Documentation requirements | Medium | More docs = more time |
External Factors
| Factor | Impact | Notes |
|---|---|---|
| Time of week | Medium | Avoid Friday applications |
| End of month/quarter | Low | Lenders may be busier |
| Economic conditions | Low | May affect approval time |
| Industry factors | Low | Some need more verification |
Speed vs. Cost Tradeoff
Generally, faster funding costs more:
| Speed | Typical Products | Typical Cost |
|---|---|---|
| 1-3 days | MCA, Revenue-Based | 30-80%+ effective APR |
| 3-10 days | Online Term, Factoring | 15-40% APR |
| 2-5 weeks | Bank LOC | 8-15% APR |
| 4-10 weeks | Bank Term | 6-12% APR |
| 6-14 weeks | SBA Loan | 5-10% APR |
Decision Framework:
| If Your Situation Is... | Consider... |
|---|---|
| Emergency - need funds in days | MCA/Revenue-Based (accept higher cost) |
| Urgent - can wait 1-2 weeks | Online term loan |
| Planning ahead - 1+ month | Traditional bank products |
| Major investment - can plan | SBA loan for best terms |
How to Speed Up Your Application
Before You Apply
- ● Gather 4-6 months bank statements
- ● Download processing statements (if applicable)
- ● Have business license ready
- ● Know your credit score
- ● Calculate monthly revenue
- ● Prepare valid ID
During the Process
- ● Complete full application in one sitting
- ● Upload all requested documents immediately
- ● Enable notifications for lender messages
- ● Respond to questions within 2 hours
- ● Have accountant available if needed
- ● Be available for verification calls
Common Delays to Avoid
| Delay Cause | How to Avoid |
|---|---|
| Missing pages in statements | Download complete statements |
| Outdated documents | Use recent statements (within 30 days) |
| Business name mismatch | Ensure name matches exactly |
| Unresponsive to requests | Set up alerts, respond immediately |
| Unclear use of funds | Have clear answer prepared |
| Pending information | Resolve outstanding items first |
Planning Your Funding Timeline
Scenario Planning
Scenario 1: You Need Money Next Week
- ●Start MCA applications today
- ●Apply to 2-3 lenders for comparison
- ●Have documents ready
- ●Expect funding in 3-5 days
Scenario 2: You Need Money Next Month
- ●Explore online term loans
- ●Compare rates across lenders
- ●Take time to find best terms
- ●Plan for 2-3 week timeline
Scenario 3: You Need Money in 3+ Months
- ●Pursue SBA or bank loans
- ●Prepare comprehensive documentation
- ●Take time to get best rates
- ●Start process 10-12 weeks ahead
Emergency Funding Playbook
If you need capital urgently:
- ●Day 1: Apply to 2-3 MCA/revenue-based lenders
- ●Day 1-2: Submit all documentation
- ●Day 2: Receive and compare offers
- ●Day 2-3: Accept best offer, sign documents
- ●Day 3-4: Receive funding
Summary
Understanding funding timelines helps you:
- ●Plan ahead - Start applications before you're desperate
- ●Choose wisely - Match speed needs with product type
- ●Prepare properly - Have documentation ready
- ●Set expectations - Know when to expect funds
- ●Balance cost - Faster isn't always better
The golden rule: Start exploring funding options before you urgently need them. The more time you have, the better terms you'll get.