Small Business Loan MythsBy Caitlin in Business
Small business lending and borrowing is a fast growing market with potentially endless limits. Small business’s make up a significant part of the Canadian economy and one of the major things they all have in common is that they need loans. The small business loan demand is ever increasing and alternative lenders are taking advantage of this demand. It’s easier than ever to get the financing you and your business needs.
Unfortunately with all these advancements and increased availability of small business loans comes a lot of misinformation, there are countless small business loan myths that need to be debunked as soon as possible. We’ve put together the top 3 myths that we think you need to know the truth about so you can get the funding you need.
Myth #1: Getting Approved is Time Consuming and Almost Impossible
The alternative lending market is a relativity new phenomenon within the financial world, and it’s only becoming more and more popular. The increasing number of available alternative loans means that it’s no longer impossible for you and your business to get financing you want.
In the past applying for a small business loan from a more traditional lending institution like a bank meant never ending paperwork, countless meetings and hours spend discussion your business’s worth and potential. And at the end of all that the probability of approval was still next to nothing, with advancements in technology and the approval process in general, this is fortunately no longer the case for most small businesses.
Smaller online lenders can approve business loans in days and sometimes even hours with minimal paperwork and minimal stress. These quick, easy and painless small business loans are the perfect solution or any business owner who is experiencing an unexpected cost or who is looking to improve or expand their company as soon as possible.
Long gone are the days of time consuming meetings that end is rejection, small business lenders are stepping up and providing their clients with approval rates and the quick service they’ve always wanted. No business owner should have to fear the loan process, don’t let previous notions of small business loan practices hold you back from getting the financial you need.
Myth #2: Only Banks and Traditional Lending Institutions are Trustworthy
There is no wonder why most people believe that alternative or online lenders should not be trusted, because for a long time this was the case. Payday lenders and other predatory lenders were at one time the only alternative to bank loans. Predatory lenders have given a bad name to alternative lending as a whole, they exploit borrowers who are desperate and in need of fast cash.
Fortunately, reputable alternative lenders have fought back against those predatory lenders who have tarnished the market with their extremely high interest rates and unreasonable terms. Loans Canada is dedicated to working with its clients to crush predatory lending stereotypes with our customer service based lending practices and secure online loan approval process that can provide you with the financing you need so your small business can develop and grow.
Myth #3: Numbers are Foremost When it comes to Approval
When trying to find the right type of lender for your business it can seem like numbers are the only things that are important these days. Most traditional lenders look to your credit score to figure out whether or not you’ll be a responsible borrower and will only approve you if your business is already significantly profitable. For the average small business owner these strict requirements mean that they’ll never get the funding they need.
One of the greatest benefits of working with a smaller alternative lender is that they’re more often than not more interest in you and your business as opposed to the arbitrary numbers that have been assigned to you. Sure, alternative lenders love to work with businesses that have great credit scores and high profits but they also understand that not all businesses have high credit score and high profits.
Numbers aren’t at the top of most alternative lenders check list, most place emphasis on different issues, values and standards. As a rule of thumb here are a few things that most small business lenders take into consideration when proving loans:
- Your commitment as a business owner
- Business plan
The small business loan process doesn’t need to be long, stressful and frustrating; it can be quick, easy and relativity painless. The myths surrounding small business lenders need to be demystified, not all lenders are looking to take advantage of borrowers looking to get the money they need to help improve their businesses.