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A Guide to Getting an Emergency Business Loan

Nothing is certain in business, and companies sometimes find themselves in a situation where they need an influx of finances to help keep moving forward.

In times of financial challenges or emergencies, it is vital that you act quickly to secure the funding needed to keep your business afloat.

One way for a business to do this is with an emergency business loan. These are quick loans that can help provide a lifeline for business owners of all sizes, from small businesses and sole traders to large corporations, and can be the answer to their immediate financial concerns.

Check out our latest blog to see the benefits of emergency loans for small businesses.

In this blog, we’re going to dig a little deeper into just when an emergency business loan becomes an option, and how to go about getting one.

Let’s take a look.

person signing a contract

Why Might a Company Need an Emergency Business Loan?

There are many instances where your business may need an emergency loan, including:

  • Cash Flow Issues – A positive cash flow is vital for maintaining a healthy business. If you are experiencing issues such as a drop in sales or unexpected expenses, then this can cause a big drain on your finances, and you may find your balance is running low. In this case, an emergency business loan can help to keep you stable until things turn around and cash flow gets back on track.


  • Unexpected Opportunity – Not all reasons for an emergency business loan are negative. One reason that you may need this type of loan is that you get an unforeseen opportunity that you feel you can’t turn down, such as an investment. In this case, an emergency loan can provide you with the funds needed to take advantage of the opportunity and allow you to pay it back over time when the investment is paying off.


  • Events of Failure – We would love it if nothing ever went wrong in business, but unfortunately things happen that may be out of your control. Natural disasters, catastrophic events, system breakdowns, and property repairs could all catch you off guard at any time, and sometimes an emergency loan is needed to help you recover and get issues resolved and your business back on track.


  • Changing Economic Situations – The way that people are spending can change suddenly. The cost of living is on the rise, and over half of the people affected by this have cut back on non-essentials. Things like economic downturns, seasonal fluctuations, and even changes in trends can see a business begin to struggle to keep cash flow healthy. In this case, an emergency business loan can help steady the ship until things turn around or you find a way of adapting that can benefit your business.



These are only five examples of why you may need a small business loan, and there are many more. If you do find yourself in this situation, here are five key steps to take to get yourself a loan.


5 Key Steps in Getting an Emergency Business Loan

Assess Your Finances

The first step in getting a loan is to work out exactly how much you need.

It is vital that you take a close look at your finances and work out exactly what you need the loan for. This way, you won’t end up borrowing too much or too little.

This information will help you work out the most suitable loan option for you, and not leave you tied down with a huge loan you didn’t need, or that you are coming back in a short time for more money.

Also, take a look at your forecasted finances, as if you have clear evidence of an upcoming upturn (or downturn) this will also affect how much you should borrow.

Prepare Your Documentation

Before you speak to anyone, you should have all of your documentation ready so that you can give the professional you choose to speak to all of the information they need.

This will also help you as it is a good chance to get your finances in order and provide an overview of your financial situation.

Some items that you will need to collect are your financial and bank statements, as a lender will want to see these to assess your financial health.

You will also have to show a business plan of how the loan will help you and showcase your ability to pay it back in the future.

Speak to a Professional

Once you have your documents in order and you are clear on what you need, it is time to speak to a professional.

It is always worth looking into different lenders and funding solution businesses and making sure you choose the perfect one for your needs.

For example, you may need the funds within 48 hours of application, and not every business will be able to provide this.

Try and choose a funding option that is flexible, and that is happy to work with you to find the perfect solution for your situation (such as Smart Funding Solutions, who work with over 250 lines of credit and can submit an application within 48 hours, and provide funds in the same timeframe).

Apply for the Loan

Now the time has come to officially apply for the loan. By now, you will have spoken with your team and decided on the ideal solution for you, taking into account the length of the loan, interest rates, and value.

When preparing your application, make sure you fill out all of the necessary information accurately, and double-check all documents to avoid any issues when seeking approval which may slow things down.

Be prepared to supply any further information needed, as this will help on the road to getting your loan approved and the money in the bank.

Review the Terms and Conditions

After approval, your loan will need a final sign off.

At this point, you may feel elated that you have the funds needed to get your business back on track, but it is always worthwhile to pause for a second and have a good read-through of the terms and conditions.

This is the last chance you will have to review your loan before you are tied to it, so pay close attention to the repayment terms, including the fees and length of the contract, and feel free to get in touch with your chosen lender if you have any questions regarding what you see.

It’s better to ask them now, than when you’ve signed and are legally bound to the loan.

lady working out finances

Emergency Business Loans From Smart Funding Solutions

If you’re looking for an emergency business loan that can be approved and in your bank within 48 hours, then Smart Funding Solutions can help.

We are always flexible on repayment terms (ranging from 3 months to 5 years) and can offer loans starting from £5000.

Want to know more, or want to discuss a loan with us? Then get in touch with our team today.

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