With the advent of the Internet, you will find there is a lot of information shared online. However, how do you know whether this information is credible or not? Experts in every industry say you should not believe data and information written online blindly.
It is prudent to conduct market research and ask professionals in the field so that you effectively are able to get accurate information in the field. When it comes to information about money lending and business loans, several myths are circulating in the market today. This article will address them one by one so that you are aware of how money lending works in the business world without falling prey to scams.
Business loans for your business
Modern businessmen and women wish to expand their businesses, and they look for advice and information online. However, when they check websites, they often are loaded with misinformation and several myths when it comes to business loans. Most sites do not lay out the accurate steps, and oftentimes, small businessmen are misled into believing information that in reality is wrong and incorrect. This leads to a waste of time and further mistakes and misconceptions
Contrary to what most websites claim, several sites miss out on opportunities for securing the funds they need for their businesses. The information is generally false, and it is hard to separate facts from lies. The following are five of the common myths that most businesses face today when it comes to funding their business especially if you are a small business owner.
1. It takes a very long time for small business loans to get approved
If you wish to incorporate a business idea or need instant cash to cover an emergency, one of the most common questions that most small business owners face is how they receive funds. The approval process might take weeks or months. However, this information is now a thing of the past. There are online application procedures that help you get small business loans in just a few days or even hours if you have a high credit score with all the documentation needed.
You just need to get your papers and financial statements in place before you finally upload the form. This means if you really are looking for a small business loan for your business do not allow the rumors of a very long approval process to hold you back!
2. A new business will never qualify for a loan
There is a big myth that new businesses are never eligible for a business loan. In order to get a small business loan, you need to be an established business for funding. New businesses generally look for angel investors and other venture capitalists to get funding for their startups however this is not always necessary. As a small business owner, you do not have to run from place to place in search of an angel investor.
A new startup business owner assumes the company has to be operating for a number of years and have solid business lines of credit before applying for a small business loan, however now the approach and attitude of money lenders are changing, and they are funding startups checking the background of the owner or owners personal credit history. There are some stringent conditions however if you are open to them nothing can stop you from getting a loan from such money lenders for a business that is brand new!
3. Money lenders online are con artists with high rates of interest
Experts in the field of business money lending say you need to be careful with online money lenders, but that does not mean all of them are frauds. Some money lenders have engaged in unscrupulous practices however not all of them are bad. Therefore, check the credibility of these online lenders before you proceed. In this way, you effectively are able to get the funds you need.
4. Credit scores will influence your approval
Traditional banks look out for credit scores when it comes to small business houses however when it comes to unconventional sources the lenders generally check your cash flow, financial statement and credit score together.
If you want to apply for a loan, you need to check your credit reports and financial history. Make all your payments on time. Check credit reports for accuracy and in the event of any errors, contact reporting agencies to make the corrections.
5. Loan officers deliberately make the application process cumbersome for new business owners
There is a misconception that loan officers are heartless towards a new business owner and so if you need to get your loan approved, you need to build a rapport with them to build relationships. This means you need to invest precious time in winning these officers to your side for the approval of the loan. This is one of the oldest and biggest myths that small business owners face today.
Today, technology has taken over personal interactions, and so if you are really looking for a small business loan, you should check websites that provide you with such loans. There is no point running around offices for loan approval for your new business. You just need to get all your documents right. Keep all your financial records up-to-date. Pay all your bills on time and apply for the right loan under the right moneylender for your small business.
Therefore, when you are applying for a loan for your small business, keep the above in mind. Do not listen to rumors and other myths that will prevent you from taking the loan. Speak to experts in the field of business funding and choose the right lender for the right loan you need for your business. When you are submitting your application for the loan, keep your business plan ready so that you have everything in order for the loan you seek to get approved- as mentioned above, there are several opportunities out there for funding your business.
Article was written by the guest writer Isabella.