A lot of small business owners think that applying for a small business loan for their businesses is like looking for a needle in a haystack. As a result, these small business owners tend to disregard this option as a means of additional funding to eventually grow their businesses. In addition, there is also this prevailing notion that borrowing money brings bad luck to every business.
What business owners fail to understand is that procuring a loan for your small business is actually a good form of investment. When the time is right, you may use it as a fund to expand your growing business. You may also use the money if you need to buy a piece of equipment for your business. Even so, you may also use your loaned money if you need some addition to your workforce.
To help you clear out the air regarding some misconceptions about small business loan, we have discussed below some of its common myths:
The greater money you apply for, the lesser chances for you to be approved
Your requested loan amount should not have any detrimental effect on your application. Financial institutions have a minimum and maximum amounts for their specified loans.
As for small business loans, they are all prepared to grant a larger sum for the right borrowers. However, before you will be granted the loan, one of the most important things that these financial institutions will check is whether you are capable of repaying. Make sure that you have an around-the-clock income to pay for your loaned amount.
You must have a perfect credit to be granted for a loan
One major factor why a lot of small business owners fail to acquire loans is because of having a very low credit. However, always know that there are actually alternatives to banks. Alternative lenders such as Peer to Peer lending or other private lenders usually have lower standards when it comes to creditworthiness.
The only way to acquire a loan is through banks
As mentioned above, there are several financing options that business owners can choose from in applying for a small business loan. These alternatives are proven to be more favorable for business owners because of the following:
- Application process is hassle free
- They offer more flexible terms of repayment
- Interest rates are lower
Here in Vidalia Lending, you may borrow up to P100, 000 for your Small business. Let us help you pave your way towards financial success! You may learn more about our services through this webpage. Feel free to also reach us through our facebook page.
Small Business loan takes a long time to be approved
Rumours say that small business loans take almost a year or more to be approved. A year is actually overly dramatic. For banks, it doesn’t usually take months or even weeks to be approved. As for alternative lenders, you can complete your online loan application at any time, in any day and anywhere. If you’re lucky enough you will have your fund within the coming days.
If you’re looking for a small business loan provider with lower interest rates then you are at the right place! Not just lower interest rates but faster and smoother transactions, Collateral is not also required for loan accreditation. Visit our Small Business Loan page for your application!