4 Small Business Loan Myths You Should Be Wary Of

After the 2008 financial crisis, lending standards were tightened up by big banks, which made it almost impossible for a small business owner to get the financing required.

Thankfully, it didn’t take long for that financial void to be filled with new alternative lenders coming on board, who now provide small business owners with more financing options than they have ever had.

This is still somewhat true — if you are applying for a traditional bank loan, your personal credit score is going to weigh in fairly heavily during the underwriting procedure.

However, since today’s banks don’t just finance the owners of small businesses, a less-than-perfect credit score is not going to totally ruin your chance of getting the finances you need.

Because of Small Business Administration, being approved for a loan is no longer a problem for business owners with low capital needs, so they don’t need a lot of money.

With the Microloan program, the SBA offers loans for as low as $500 or as much as $50,000. Interest rates range from 8% to 13%.

How fast you are able to get a loan depends a great deal on the type of loan you are applying for. Keep in mind, fast cash is expensive cash. A shorter-term product can be finalized quicker than a longer-term product.

If you need money fast, and you’d like to know if you can qualify for a long-term loan, then make sure you have all your financial information ready for your appointment or when you sit down to fill out the application online.