A business loan is a one-time financing transaction that businesses use to finance expansion, repairs, equipment purchases and other expenses. Today we are going to take a look at some of the most common misconceptions business owners may have about business loans.
1. You can’t get a business loan without a good credit score.
Though a good credit score may help you get a better interest rate, it is still possible to qualify for a business loan even if your business’s credit score isn’t perfect.
2. Business loans are only useful for a few things.
You can use a business loan for virtually any purpose. For example, business loans may pay for new equipment, office supplies, employee training, unexpected expenses, the purchase of a new warehouse, or a new vehicle.
3. A business loan is the same as a business cash advance.
A business loan and a business cash advance are not the same thing. A business cash advance is usually smaller than a business loan. Business cash advances must also be repaid more quickly than business loans. Depending on your business’s financial situation, each type of financing has advantages.
4. You have to have a long-standing relationship with a lender to get a business loan.
You do not have to have an established relationship with a lender in order to qualify for a business loan. In fact, it is possible to obtain a business loan from a lender that has never worked with your business before. As long as your business meets the lender’s minimum requirements, you can obtain a business loan.
5. Finding a lender who will give my business a loan is really hard.
It is not hard to find a lender willing to give you a loan. To find a lender who wants to work with your business, simply complete the short form on UnsecuredBizLoan.com. After you submit the form, one of our loan experts will contact you and inform you of your financing options. You don’t have to pay anything to submit the application, and you don’t have to continue the process if you change your mind.
To apply for funding for your small business, use the form on the right to begin the application process.