Busting Myths About Small-Business Lending
If you run a small business you may be considering taking a loan out on it. But before you do, it helps to know what is true and what is just a myth. Clearing up these confusions before you pursue lending opportunities will help you make a more informed decision.
Approvals Are Time Consuming
One of the biggest myths about getting a business loan is that it takes forever to get approved for one. If you have all your information and paperwork gathered in advance the application can be done in under one hour. And it is not unusual for a lender to view your application and inform you of their decision within no more than 24 hours. In most cases, you will have access to the cash within one to two days afterward.
New Businesses Get Automatic Denials
It’s a false belief that most new businesses cannot get a loan. There are lenders that will agree to extend money to you if you are in the process of launching a new small business. However, they will scrutinize your application and pay special attention to your credit score. Even with an approval, the chances are that you will pay higher fees more established businesses pay on their loans.
Online Lenders Aren’t Legit
Online lenders have gotten a bad reputation. Many people falsely believe that they are all just out to scam small businesses. But many of them go out of their way to be able to extend you a loan if you are just starting your business. Even if you don’t qualify for a bank loan, you may be able to borrow money from an online lender.
Loan Officers Focus Solely On Credit
Another myth is that loan officers focus only on your credit. Thanks to alternative lending options, bad or no credit can’t necessarily stop you from getting the business loan you need. In most cases, they also look at your business’s cash flow and its revenue history. This may give you a shot at getting a loan you might have been denied if it was based only on credit.
For more information about myth vs fact about small business lending solutions, please contact DrawBridge Capital.