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Pros and Cons of Same-Day Business Funding

by OnDeck Australia,   Mar 15, 2023

If you’ve been in business for any length of time, you know that there are always times when you need a little extra cash. Maybe you have an unexpected repair bill, or maybe you need to take advantage of a great opportunity that comes up. Whatever the reason, if you need money fast, same-day business funding can be a great option.

Of course, like anything else, there are pros and cons to this type of funding. We’ll take a look at both sides so you can decide if same-day business funding is right for your situation.

Pros of a same-day business loan

 1. Fast access to funds

You can get the money you need when you need it. If there’s an overdue invoice or temporary deal on new assets or some other opportunity you just can’t miss, same-day business loans can help.

2. Flexible repayment terms 

Most lenders offer flexible repayment plans that fit your budget, helping to make sure you can comfortably repay the loan.

3. No collateral needed

Unsecured business loans do not require any collateral, which makes them a great option for small businesses. Unsecured loans remove the risk of losing assets if you end up being late on payments or default on the loan.

4. Easy application process 

The online application process is usually straightforward, requiring some details about the business, business ownership, 6 months of bank statements and some other personal details. Applications can usually be completed in minutes provided all the details are readily available. 

5. Low business credit score requirements

Same-day funding often has a much lower minimum credit score than traditional loan sources. OnDeck only requires a score of 500 to be eligible and does not require a minimum personal credit score. 

Check your business credit score for free with our Know Your Score tool.

6. Minimal paperwork

Many lenders provide easy online applications with minimal paperwork requirements. OnDeck requires applicants to submit 6 months of business bank statements to apply for short-term business loans.

Cons of same-day business loans

1. Short repayment period

same-day loans typically have shorter repayment periods than traditional loans, often requiring you to pay back the full amount over 6-24 months. 

2. Higher interest rates

because same-day loans are unsecured and have accessible approval requirements, they often come with higher interest rates than traditional loans. The shorter repayment periods can sometimes mean you pay interest weekly or monthly, instead of annually.

3. Fees and penalties

some lenders may also require additional fees or charge late payment penalties that can add up over time. Of course, a long-term small business loan also comes with its own share of fees.

4. Smaller loan amounts

A fast business loan is limited in funding potential. Most lenders will not provide large loan amounts, and you may need to find a more traditional lender if your business needs a larger amount of capital than a same-day unsecured loan can provide.


Is it worth getting same-day small business loans?

It ultimately depends on your business’s specific needs and financial situation as to whether taking out a same-day loan is the right choice. Be sure to carefully consider the pros and cons, seek professional financial advice, and weigh up your options before making a choice.

Before you commit to any funding option, make sure you do your research and read all of the terms and conditions the lender has.

In the end, if small business owners need a cash flow influx quickly, then a quick, unsecured business loan is a hassle-free way to get it.

OnDeck Lightning Loans can get you $10,000 to $150,000 funded within 2 hours, from approval, through an online application process that only takes minutes.


Same-day business loans FAQ

Can you get a business loan with no deposit?

Yes, you can get a business loan with no deposit. Many same-day lenders offer unsecured loans that do not require collateral or a down payment. 

Make sure to shop around and research different options before committing to any funding option.

What are the easiest loans to get approved for?

Unsecured business loans are typically the easiest to get approved for, as they often require less paperwork and have lower credit score requirements than traditional loan sources.

Check the eligibility requirements for OnDeck loans

What are unsecured business loans in Australia?

Unsecured business loans are loans that do not require the borrower to use an asset as collateral. This type of loan is useful for businesses that don’t want to put any valuable assets or property at risk.


Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at March 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.

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