Breaking Four Misconceptions of Small Business Lending
(From Contributor Marina Thomas) With the advancements in technology and the Internet revolution, people can now easily access information at their fingertips. The main problem with fake data and information regarding small business loans is that entrepreneurs get a false sense of the loan qualification. They often believe that they are not eligible for loans. If you are seeking ways to procure small business loans and want to have a decent funding for meeting your business requirements, you must be aware of the myths associated with small business lending. Here are some of them:
Loan Approval Takes Infinite Time
Whether you are looking to continue your business operation or invest in a new idea, there will always be a funding situation that needs to be taken care of. Needless to say, every business owner would like to have the funding as soon as possible. While browsing the web and looking for referrals, you will possibly hear people saying that a business loan approval can take forever. Even though this might be the situation years ago, in today’s world, you can procure a business loan within one day of applying for the loan from a reputable lender. These lenders take about 24 hours of time to go through your application and review your credit scores along with the financial history, but the process does not take much longer the way people misapprehend it.
Newcomers Do Not Stand a Chance
Many startup business owners think that they need to be in the industry for a few years first and develop their credit rating in order to show their eligibility in the market, which will help them in securing funds. This is a misconception as entrepreneurs do not require an incredible business credit history to be eligible for a loan. The streamlining of small business loan procedure has been made possible by lenders who are increasingly offering funding solutions to newcomers in the industry.
Do Not Trust Online Lending Services
Just like any other finance options, there are the ethical ones and unethical ones. All you need is to stay committed to your cause and scrutinize a credible online source for securing small business lending.
Only the Credit Score Matters
It is true that traditional banks give top priority to credit score and only if they are satisfied, you will get the loan. However, luckily for small business owners there are some money lending sources that take factors other than credit score into consideration and provide the required fund.
Hopefully, now you feel more confident and committed to finding a way for acquiring funds for your business. Do not pay attention to these misconceptions and choose an authentic money lender.