Getting approved for a small business loan may seem to be rather intimidating. In fact, everything is easier than you think. Below you can find 7 common small business loan myths busted.
Myth 1: It is the Hardest Thing to Obtain a Business Loan
It is not easy to get business funding for your small business, however, it is possible. The best way to avoid being on the hook is to be well prepared to overcome the challenges before applying for a loan.
Myth 2: Banks Are the Best Way to Obtain a Business Loan
Merchants trying to borrow $5.000 – $250.000 are likely to get refused to get a bank loan. Banks are ideal for those in need of large amounts of cash. Banks offer longer periods and lower interest rates.
Fortunately, alternative lending sources like firstamericanmerchant.com, a reputable high risk payment processor, offer the lowest possible rates, and fast approval. To obtain an exclusive business loan, consider turning to FAM.
Myth 3: Banks are the Worst Way to Obtain a Business Loan
Banks may not be the ideal option for small businesses, but this doesn’t mean they are the worst option. Established businesses looking for ways to grow at a moderate rate can easily choose to apply to a traditional bank for business funding.
Myth 4: A Good Business Plan is the Most Important Thing
The method of considering a business plan a key factor with regard to success and fundability of a business is not that much actual nowadays. Anyway, even though the majority of lenders may not require a detailed business plan, having a well-thought plan ready to provide is a nice idea.
Myth 5: You Cannot Do Without a Perfect Credit History
Today, you have greater chances to obtain financing for your company even if you have bad credit. Alternative lending options make their lending decisions based on the financial realities of your business instead of focusing on your credit history.
Myth No. 6: The Interest Rate is the Most Important Factor to Consider
The interest rate is not the only critical aspect to focus on when choosing a lender. You should also take into consideration factors like the terms of the loan, what the loan can serve for, the amount it will cost, how soon you will have to repay the money, and more.
Myth 7: To Have More Chances of Approval, You Should Ask for Smaller Amounts
Traditional banks usually prefer providing approval for larger loans to make larger profits, but they are cutting back on smaller loans. When applying for a loan, it is important to take into account the amount necessary for your business’s growth and the amount you can afford to make your monthly payments.
When applying for a small business loan, take your time to learn about all the important points and contract terms before signing any document. Make the right decision and grow your business.Get Started Now