The Truth About Small-Business Loans
A recent article, Busting 5 Myths About Small-Business Lending, by Jared Hecht, says that modern entrepreneurs looking for funds for business expansion have greater opportunities than the generations past because of the increasing availability of information and resources online. However, there are also myths and misinformation regarding the lending space—many of that misinformation can give business owners the wrong sense of their own eligibility.
Here’s the most common myths about small business loans.
- Startup entrepreneurs are not eligible.
Many startup entrepreneurs believe that they must be in business for few years and have reliable business credit before they can qualify for a loan. However, many creditors provide startup loans that entail little or no business credit history to be eligible.
- Approval takes too long.
With new loan applications online, once you complete the requirements, your application can be reviewed and approved within 24 hours of submission.
- Online lenders charge higher interest rates.
Some online lenders offer single-digit interest rates. Those charging higher rates are probably involved in risky lending practices, which you want to avoid. However, not all online lenders are untrustworthy and if your bank loan doesn’t get approved, online funding may be your best answer.
- Loan approval is based on credit score alone.
With the growth in the alternative lending sector, many creditors consider your business’ income history, cash flow statement, and other financial documents aside from your credit score, when determining your loan qualification.
- Approval is controlled by a machine.
Although technology has become more prevalent than in-person banking, the modern funding process isn’t as impersonal as most people think. Lenders take a wide range of objectives into consideration, including your business and marketing proposal.
Knowing the correct information about small business loan offers you the opportunity to secure the necessary funds for your business to grow. When it comes to expanding your business, flexibility is a huge perk. YourOffice offers a wide choice of office and workspace solutions: flexible office space, team office space and virtual office packages. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.