Same Business Day or Next Day: How Fast are Online Loans

Published on January 15, 2021 by Daniel Azzoli

get started today on a white-framed letter board on marble surface

You can’t put financial emergencies on hold until you have the savings to handle it. These urgent expenses or repairs demand a quick fix. Like if your furnace suddenly decides to take a vacation in the dead of winter — you need to act fast before your house’s plumbing freezes.

Same business day and next day loans may be the quick solution for your emergency needs. They work on accelerated timelines, speeding up the borrowing process from start to finish. It’s important to note that when we talk about next day loans, we mean next business day. In any case, funding times are typically subject to your bank’s policies.

If approved, you may not have to worry about when your money will come through. These online loans give you an estimate right there in their names. Sometimes, these estimates may not be accurate. More still, a quick turnaround may sometimes be tied to high interest and finance charges.

So what’s the true cost of borrowing fast loans online? Let’s learn about the pros and cons of same business day and next day loans to find out!

What Are Same Business Day Loans?

A same business day loan is a personal loan or line of credit option where funds may be obtained relatively quickly. If approved, you may receive your funds on the same business day you apply for them, depending on multiple factors.

This may seem attractive if you’re caught in a bind. Not all personal loan or line of credit options work on this timeline. Some financial institutions have approval requirements and lending processes that may slow things down — postponing when you might get your hands on your cash.

Financial institutions that offer same business day loans use technology to automate parts of the application and underwriting process, so your application may be approved quickly. Even better, your funds may be automatically deposited to your bank account, so you don’t have to wait too long to use your money.

As with any personal loan or line of credit, approval for same business day loans hinge on your ability to meet a financial institution’s eligibility requirements. Depending on your choice of lender, these criteria may involve your credit score, income, location, and more.

A high credit score may help broaden your selection and open up your options to better rates, but if you don’t already have it, it’s not something you can drum up right before you need to apply. Even these 5 simple steps to rebuild your credit history take time to take effect.

Luckily, a bad credit score may not necessarily prevent you from being qualified for online loans on the same business day. Some financial institutions may look at other factors when determining your creditworthiness. If you meet those requirements, you might get online loans the same business day as your approval.

Or you may not.

the word not in white lettering on orange background next to word today in white lettering on blue background

Keep in mind, some same business day loans may take longer than you expect. You may only be able to receive your funds in one business day if you start your application early in the morning. Any application made in the afternoon may have to wait until the next business day. Or, you may be approved for the same business day, but it could take days before you receive your funds. It all depends on a variety of factors.

What Are Next Day Loans?

Next day loans do what it sounds like. They connect you with cash the day after your application gets approved.

There’s just one caveat: what they mean by “next day” usually means the next business day.

Generally, a business day refers to weekdays during typical office hours. It means Monday through Friday, from 9 a.m. to 5 p.m., and it generally doesn’t include holidays. These hours may vary slightly depending on the financial institution, but the overall rule applies strictly to weekdays. 

This distinction may mean a world of difference to your disbursement depending on when you apply.

For example, let’s say you shop around for next day loans online on a Friday. Even if you receive word you’re approved on Friday, you may not receive your funds until Monday at 9 a.m. at the earliest.

This is something to keep in mind if you’re facing an unexpected emergency. Understanding this timeline may help you manage your expectations and anxieties around your financial emergency.

Similar to receiving online loans the same business day, being approved for next day loans online depends on your ability to meet eligibility requirements.

Yes, prime credit may get you the best selection of affordable next day loans. But you may not be denied outright if you have bad credit.

While financial institutions may do credit checks to look at your score, some may have different eligibility requirements. Aside from your credit, they may want to see you have the following:

  • Proof of employment and regular income
  • A manageable debt to income ratio
  • An active bank account

Where Can You Get Fast Loans Online?

Same business day, next day — a lot of different kinds of loans may fall under these terms. You may have several options, and it’s important to know what each of these options entail.

Here are some examples of same business day and next day loans.

smiling woman in black glasses and pink blazer sitting in front of laptop next to table holding grey mug in left hand

1. Revolving Credit

Revolving credit refers to an open-ended loan, such as a line of credit or credit card. In case of an emergency, you have the option to access funds whenever you need from your line of credit or credit card.

Here are some ways you can get funds on the same business day or next day using your line of credit or credit card.

Cash Advance

A cash advance is often taken from a credit card. It may be an option if you find yourself in a cash-only situation. You may use your credit card to get physical cash if you don’t have what you need in your checking account.

If you have a card and PIN, you may be able to get a cash advance from any ATM, or you may have to speak with your financial institution in-person.

Here at CreditFresh, we don’t recommend using a credit card as a cash advance. There’s usually a charge that comes with it, and you may also pay a higher interest rate on cash advances than on purchases. This interest may start accruing right away, as there’s typically not a grace period on cash advances[1].

A Personal Line of Credit

As mentioned, a personal line of credit is a revolving or open-ended loan, and it may be offered as a next day loan online in certain circumstances.

As an open-ended loan, a personal line of credit gives you a pre-set amount of money or limit. You may use as much as or as little of this limit as you need to, when you need to. As long as you keep up with your payments and as you continue to pay off your balance, you’ll have access to your personal line of credit limit.

Generally, a personal line of credit requires a minimum payment to be made periodically which will include the following two things:

  1. A payment towards finance charges; and
  2. A required payment against the principal

If you have little cash to spread around, making a minimum payment could be an appealing option that allows you to not pay the full balance immediately.

But, you will accrue interest on any balance you carry over to your next billing cycle while making a smaller payment against your balance. These two things combined mean it will take you longer to pay off your debt, which makes the overall cost higher[2].

The interest and other fees you pay depend on several factors, but your credit score is sometimes the most influential one. While you may not run into these little known side effects of bad credit, you’re more than likely going to face higher interest and finance fees if you have bad credit.

Before you request one in an unexpected emergency, always find out how a line of credit works with your financial profile.

2. Title Loans

A title loan is another short-term, small-dollar loan. How it differs from other similar types of loans is that it’s a secured personal loan.

A secured loan uses an asset as collateral that a lender may take if you default. In the case of title loans, your vehicle is used to secure your loan. If you fail to pay back what you owe on time, your lender may repossess your vehicle to recoup the value of your loan.

From a lender’s perspective, the backing of your vehicle reduces the risk they face should they offer you a loan. As a result, they may approve fast loans online even if you have a bad credit score.

Title loans may also come with steep finance charges, which — coupled with the risk of losing your vehicle — may make title loans a problematic option.

bill showing debits and credits under amount column

Conclusion

In a pinch, a same business day or next day loan may seem like the fastest way to get the money you need. It’s true, these options work on a faster timeline than other options.

But this accelerated process may come at a cost, as sometimes, same business day or next day loans come with high interest and/or fee charges.

Before you decide to apply for any of these fast loans online mentioned here today, be sure you can handle the charge. Take the time to compare prices to ensure you find the most affordable loan for your needs.

Just remember — same business day or next, being approved and receiving the funds you need is never a guarantee. You need to fit your financial institution’s eligibility to unlock these speedy opportunities.

Disclaimer: This article provides general information only and does not constitute financial, legal or other professional advice. For full details, see CreditFresh’s Terms of Use.


[1] https://www.investopedia.com/ask/answers/111414/how-does-interest-work-cash-advance-my-credit-card.asp

[2] https://www.thebalance.com/how-long-to-pay-off-balance-with-minimum-payments-961120