Small Business Loan Myths: Making Sense of Your Finances

Making sense of your finances is imperative for you as a small business owner. But, how can you ensure that you are making sense of your money? Many entrepreneurs turn to small business loans. They look at ways that they can secure cash. Often, this is done with the prospect of growth in sight. Loans can also be used to obtain vital and expensive equipment. This can ensure that their business ranks higher in a competitive market.

Small business owners often get stumped when it comes to debunking myths. What are the facts? Are loans difficult to obtain? Can you ensure that your business is moving in the right direction when you have a loan?

Here, we will make sense of these issues and ensure that you are in receipt of the right information. Your businesses success is important, after all.

Myth 1: You Can’t Obtain Specialist Funding as a Small Business

This is one myth that gets to us. You can receive specialist funding for your small business. After all, you need to ensure that you are in receipt of the right equipment at a great price. Obtaining a specialist loan is incredibly easy when you are a small or start-up venture. Take a look online at the raft of specialist loans that you can apply for. You can even secure scaffolding financing for a construction firm! Specialist loans are designed for the small business owner. So, think about your needs and what specialist equipment you need to make your business bigger and better.

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Simon Cunningham

Myth 2: You Need to Have an Impeccable Credit Rating to Secure a Loan

Let’s face it; an excellent credit rating is a must. But, you don’t have to beat yourself up if you don’t have one. In fact, many loan providers will overlook this if you have a significant annual turnover and you are making a profit. After all, it’s people not ratings that matter. Of course, purists will insist on an exemplary credit history. But, other independent loan providers may look at things like your turnover and your ability to pay back. They use a broad range of data collation methods to ensure that you are in a good place to pay back your loan. It’s always wise to explore these avenues too.

Myth 3: The Loan Application Process is Left to a Computer’s Answer

Computers don’t make decisions; people do. Many people think that a computer algorithm is what is needed to ensure that they secure a loan. Strictly speaking, this is not as common as it used to be. New lenders may have a series of data points that they can use. But, you need to ensure that you are seeking out a loan provider that has people in its company. Yes, the human touch cannot be replaced. After all, you cannot convey your passion and integrity to a computer. Speak to a loan provider that offers a more personalised service. That way, you know that you don’t have to face rejection.

 

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