How quickly can my company actually get the money?

There is no honest single answer, and you should be wary of anyone who gives one before seeing your figures. How fast finance lands depends on three things: which product it is, how complete your paperwork is, and how much checking the funder has to do. Unsecured, short-term products tend to move quickest. Secured loans move slowest, because property and legal work take time.

The steps every application goes through

1. Enquiry. You describe the company and the need. With Ask Sterling this takes a few questions, and then, with your consent, the enquiry goes to one funding partner.
2. Conversation. A funding specialist calls to understand the need and which products fit.
3. Documents. Bank statements, accounts, ID. See what documents funders ask for.
4. Underwriting. The funder checks the company, the directors and, often, credit files.
5. Offer. Terms in writing. Read them, convert to an APR, and compare.
6. Legal and security. Signing, any personal guarantee, and any charge registered at Companies House.
7. Payout.

Each step can take minutes or weeks. Steps 3 and 6 are where most of the waiting happens.

What speeds it up

• A complete pack on day one. Funders rarely wait on themselves. They wait on the next document.
• Clean, current filings. Overdue accounts or confirmation statements at Companies House stop things early.
• A clear purpose and amount. "£80k for stock ahead of the November peak, repaid from December takings" is quicker to assess than "as much as possible".
• No security, or simple security. A debenture is standard paperwork. A charge over property means valuations and solicitors.

What slows it down

• CCJs or defaults that need explaining. See do CCJs stop business finance.
• Lots of existing finance, which needs settlement figures and sometimes the other funders' consent.
• Turnover that does not match between your statements, accounts and VAT returns.
• Directors who are hard to reach to sign.

Speed costs money

The quickest products are usually the dearest. A merchant cash advance at a 1.35 factor over 6 months, paid daily, works out at about 126% APR. A £100,000 loan at 18% APR over 24 months costs £19,817.84 in interest. If you can plan three weeks ahead, the slower product may save you a great deal.

Sterling's take: urgent money is a symptom. Next time, ask before it is urgent.

What to do next

Put your document pack together today, check what you can comfortably repay with the loan repayment calculator, and if an offer arrives quickly, run it through the offer checker before you sign. Compare the merchant cash advance and business loan guides to see the speed and cost trade-off side by side.