The reason you haven’t taken the brave step towards having your first small business loan processed is because of the myths you’ve heard about obtaining such loans. You shouldn’t allow myths about small business lending to prevent you from pursuing your business’ dream.
Let’s have a look at some of the common myths about small business lending that you should stop believing.
Myth #1: A New Business Never Qualifies for a Small Business Loan
Many startup businesses cling to the belief that they need to have been in business for a few years before they qualify for a loan. The truth, however, is that many lenders are already offering startup loans that need little or no business credit history to be eligible.
Myth #2: You Need a Perfect Credit Score to Get a Small Business Loan
For banks, a low credit score will kick you out of their lending lists. Luckily for many businesses, large or small, many other lending options do not worry too much about your business’ credit score.
You can go for alternative lending options that are always willing to offer much more flexible terms, including lowering creditworthiness levels.
Myth #3: The More Money You Apply for, The Lower the Chances of Your Small Business Loan Getting Approved
There should not be any negative correlation between the amount of money you apply for and the loan’s possibility of getting approved. Lenders will always be glad to offer larger loans to borrowers who qualify. If your business qualifies to get a larger loan, there’s no need to shy from applying for the same.
Myth #4: Loan Approval takes a lot of Time
The adage that approval for business loans can take weeks or even months is something of the past. Thanks to an online loan application, your small business loan application can be processed within 24 hours, depending on how organized your business is. Many other lenders can offer cash in hand within two days of application.
Myth #5: Loans Shouldn’t Be Taken for Short Term Solutions
Many people with small businesses don’t believe it is appropriate to take short-term loans. However, there are situations where taking a short-term business loan turns out to be more cost-effective and practical. You should always look for every loan type before ruling anything out.
Make the Right Loan Decision
Disregarding these myths means making the right loan decisions and following in the footsteps of other organizations that had done so before. For more guidance about making the right financial steps in business, contact Green Leaf Capital today.