Most business people come to the loan application or inquiry process with some preconceived ideas of what to expect. Usually, they center around two prevailing thoughts: A big bank loan is my only option. I need to borrow an enormous amount of money. And they simply just aren’t true. The Internet is full of information. Unfortunately, it’s also full of plenty of misinformation. Your parents or grandparents might dispel sound business advice, but it might not represent the new developments in business borrowing. We’ve taken the initiative to discuss and dispel the most commonly heard myths to give you accurate information.
Myth #1: If a traditional bank won’t approve my loan, no one will. Not true. Not even close. The landscape of business lending has undergone some dramatic changes in recent years. While traditional banks were once the only game in town, they’ve been largely replaced by online alternative lenders. And these new lending sources have vastly different processes and standards for servicing loans to small businesses.
Myth #2: If I don’t have perfect credit, I’m out of luck. While it’s true that lenders have become stricter due to increased guidelines and regulation, the truth is that even if you have bad credit, you still have options. Alternative lenders understand that your credit score isn’t the only indicator of your ability to repay a business loan. You can overcome a bad credit score with a host of other options. In fact, taking a non-traditional route toward securing business financing, such as PowerUp’s merchant cash advance, will give you the tools to help rebuild a poor credit rating.
Myth #3: Lenders won’t consider my loan amount because it’s too small. This one isn’t true, either. Whether you are looking to secure a loan as small as $5,000, or a large as $1 million, PowerUp’s team of lending professionals will take your business as seriously as you do and will help to finance your company with as much—or as little, as you need.
Myth #4: Small business lending requires that I repay the loan in big chunks, every month. Even if business is slow. While this might be true of traditional lenders, alternative lenders have created new options for businesses with different needs and capabilities, such as seasonal businesses that experience booms during certain parts of the year, while business drops off when the season is over. Consider PowerUp’s merchant cash advance, where the loan principal is repaid through a fixed percentage of daily sales, accommodating a business by allowing them to pay more when their sales volume is high, while giving them much needed room during the off-season.
Myth #5: Business loans take a year and a day to get approved. Um. Nope. Not at all. Not only does it not take weeks or even months to get approved, if you fill out an online application with an alternative lender like PowerUp, they can complete an online loan application in less than an hour, and you can have the cash in hand to grow your business by the very next business day.