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Updated by LoansLens on Nov 17, 2016
Headline for 4 Small Business Loan Myths You Should Be Wary Of
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4 Small Business Loan Myths You Should Be Wary Of

If your business needs financing, right now or some time later on — here are 4 myths you should be wary of.

Source: http://loanslens.com/4-small-business-loan-myths/

1

You will not be able to get a small business loan if you get rejected by a traditional bank

You will not be able to get a small business loan if you get rejected by a traditional bank

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.

2

You must have a perfect credit score

You must have a perfect credit score

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.

3

You will not be able to get a small loan

You will not be able to get a small loan

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%.

4

Getting a small business loan is a lengthy process

Getting a small business loan is a lengthy process

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.

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    LoansLens provides advice on all kinds of loans online, be it personal loans, mortgage, car loans or student loans. We debunk loan myths and share the best tips on how to get out of debt, what debt consolidation or student loan repayment means, etc. Find more about loans online at LoansLens.com.

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