Emergency Business Funding

Before rushing into fast funding, assess whether it's truly urgent:

True Emergencies:

• ●Equipment breakdown stopping operations
• ●Payroll due in 48-72 hours
• ●Opportunity with hard deadline that will disappear
• ●Emergency repair needed for safety/operations
• ●Vendor requiring immediate payment to continue relationship

Not True Emergencies (Even If They Feel Urgent):

• ●"I want it now" without genuine time pressure
• ●General cash tightness without immediate crisis
• ●Opportunity that will exist next week/month
• ●Expense that could be negotiated or delayed

Why This Matters: Emergency funding is more expensive. If you have 2-3 weeks instead of 2-3 days:

• ●You can qualify for better products
• ●You can compare offers
• ●You negotiate from strength, not desperation
• ●You save significant money

The Desperation Premium: Lenders know when you're desperate. That often means:

• ●Higher factor rates/interest
• ●Less favorable terms
• ●Less negotiating room
• ●Potential for predatory practices

Taking 3 extra days to get better terms can save thousands.

When you genuinely need money fast, these are your best options:

Same Day Funding (Realistic):

Merchant Cash Advance

• ●If you process credit cards: fastest option
• ●Apply morning, funded by end of day (sometimes)
• ●Requirements: 6+ months in business, $10K+ monthly card sales
• ●Documents: Bank statements, processing statements, ID

Working Capital Loans (Alternative Lenders)

• ●Online application, fast decisioning
• ●Same-day to 24-hour funding common
• ●Requirements: 6+ months in business, $10K+ monthly revenue
• ●Documents: Bank statements, ID, basic business info

Existing Line of Credit Draw

• ●If you have an established line: immediate
• ●No new application needed
• ●Draw up to your available limit

24-48 Hour Funding:

Revenue-Based Financing

• ●Based on monthly revenue, flexible payments
• ●Quick underwriting process
• ●Requirements: 6+ months in business, consistent revenue

Invoice Factoring (Existing Relationship)

• ●If already set up: fund new invoices quickly
• ●If new: Setup takes 3-5 days, but then ongoing invoices fund in 24 hours

What Speeds Up Funding:

• ●Complete documents ready before applying
• ●Clean bank statements (no NSFs, overdrafts)
• ●Clear, simple use of funds
• ●Morning applications (more time for same-day)
• ●Responsive communication (don't delay lender requests)

If you need emergency funding, here's your immediate action plan:

Step 1: Gather Documents (15 minutes) Have these ready before you start:

• ●Government-issued photo ID
• ●3 months business bank statements (download PDFs from bank)
• ●Credit card processing statements if applicable
• ●Voided business check
• ●Brief description of what funds are for

Step 2: Know Your Numbers Be ready to state:

• ●How much you need (exact amount)
• ●Monthly revenue
• ●Time in business
• ●Basic business description

Step 3: Check Credit (Free, 2 minutes) Know your approximate credit score:

• ●Credit Karma
• ●Credit Sesame
• ●Your bank's credit monitoring

This helps you know which products are realistic.

Step 4: Apply to 1-2 Targeted Options Don't spray applications everywhere. Choose 1-2 that fit your situation:

• ●Strong card sales? → MCA
• ●B2B with invoices? → Factoring
• ●General business with revenue? → Working capital loan

Step 5: Be Responsive Once you apply:

• ●Watch email and phone constantly
• ●Respond to lender requests within minutes
• ●Have additional documents ready if asked
• ●Be available for phone verification

Timeline Expectations:

• ●Application: 15-30 minutes
• ●Initial decision: 1-4 hours typically
• ●Document review: Same day to next day
• ●Funding: Same day to 48 hours for fast products

When you're desperate, you're a target. Know the warning signs:

Red Flags to Watch:

"Don't Worry About the Details" Legitimate lenders want you to understand terms. Run from anyone discouraging questions.

Can't State Total Payback Amount If they won't clearly tell you the total you'll pay back, something's wrong.

Upfront Fees Before Approval Legitimate lenders don't charge large fees before you're approved. Small application fees ($50-$100) are okay; thousands are not.

Pressure to Take More Than Requested "You qualify for $100K, you should take it all!" Be suspicious of upselling.

Guaranteeing Approval Without Information No legitimate lender approves everyone. If it sounds too good to be true, it is.

Confusing or Missing Paperwork You should receive clear written terms before funds are disbursed.

What to Verify Before Signing:

1. ●Total payback amount (write it down)
2. ●Payment schedule and amount (daily, weekly, monthly?)
3. ●How long until paid off (under reasonable assumptions)
4. ●Any prepayment terms (discount for early payoff?)
5. ●What happens if you miss a payment
6. ●Whether there's a personal guarantee
7. ●What assets are at risk (UCC filing details)

If Something Feels Wrong: Trust your gut. It's better to wait 24 hours than sign something you'll regret. A day rarely makes or breaks a true business emergency, but a bad funding decision can haunt you for years.

Once you're funded and the immediate crisis is resolved:

Immediate (First Week):

1. ●Understand your payment schedule completely
2. ●Set up automatic payments if offered
3. ●Track the payment against your cash flow
4. ●Document what caused the emergency

Short-Term (First Month):

1. ●Assess whether payment fits your cash flow
2. ●Identify if root cause is addressed
3. ●Start planning how to prevent recurrence
4. ●Build even small emergency reserve

Medium-Term (3-6 Months):

1. ●If payment terms were unfavorable, plan to refinance
2. ●Build 1-3 months of emergency expenses in reserve
3. ●Establish credit relationship for future needs
4. ●Improve business fundamentals that led to crisis

Refinancing Out of Emergency Funding: After 6+ months of perfect payment history:

• ●Your options expand significantly
• ●Credit may have improved
• ●Business metrics may be stronger
• ●Lenders see proven payment track record

You may be able to:

• ●Get lower-cost product to pay off high-cost
• ●Extend terms for lower payments
• ●Access additional capital at better rates

Prevention Strategy: Best emergency funding is the kind you don't need:

• ●Establish line of credit when you don't need it
• ●Build 3-6 months expenses in reserve
• ●Diversify revenue sources
• ●Maintain banking relationships
• ●Keep documents organized and ready