Need a Business Loan? Four Myths You Shouldn’t Believe
Getting a loan for your business is indispensable to expand & grow your bottom line when the time is ripe.
But you’re reluctant to make the next big move, right? Your ears probably had come across grumblings about business finance loans: it’s challenging to get approval, the credit score needs to be impeccable, and don’t ask too much money as they might deny you, etc.
Fortunately, most of these are myths surrounding business loans. In this blog article, we debunk four common myths about getting a business loan.
Myth #1 Getting a Small Business Loan is the Hardest Thing
This is the biggest myth with no logical explanation perceived by SMEs. Like any other form of financing, successfully applying for business loans is all about preparation.
If your books are correct, transparent and you’ve maintained reserve liquidity, you’ll be able to make your lender believe that your company can pay off the debts on time.
Finance experts believe in staying clear of snags prepared well ahead of time before applying for working capital finance.
Myth#2 You Cannot Get Loan Without the Perfect Credit Score
Having a low credit score is a matter of significant concern if you apply for a bank loan. But, they are not the only money lenders out there; they are private money lenders with some flexible terms, including the level of creditworthiness that can be approved.
Most of these money lending companies pay great emphasis on the financial realities of a business, rather than its financial history of the owner.
Myth #3 The More You Ask, the Lesser Are Odds of Approval
The requested principal amount of your business loan has no adverse effect on whether your application will be accepted or rejected. Lending institutions are ready to approve large financing requests if they are the right borrowers for complying with the eligibility criteria.
Don’t be afraid to request for the money you really need!
Industry experts recommend that a business should consider how much money they actually need to grow the company and what you can manage to pay back every month.
Myth#4 Interest Rate is The Only Factor To Consider
It is obvious to hyper-focus on the interest rate when applying for a business loan.
Typically, the interest rate defines how much this money will cost you at the end of your repayment period. It is a vital piece of information, but it is just one facet of the entire process.
Although you must consider interest rate when deciding on a private lender, there are several other things to mull over: what are terms of the loan, how soon you’ve to pay it off, and for what purpose we can use the Loan.
Let’s Put The Lid On
We, at Royale Funding, provide fast & flexible small business loans. Get multiple loan options with competitive rates and terms to choose from.
Get the best expert loan advice by calling us at 703-399-1685, our knowledgeable consultants can guide you with choosing the best loan options.