Don’t Lose Sleep over these Myths Associated with Fast Business Funding
Cash or funds are essential for setting up and running your own business. According to the Small Business Administration, small business establishments usually require funds for four major reasons. These include:
Funds to start a business
Funds for purchasing inventory
Funds to strength the financial foundation of the business and,
Funds for expanding the business
Larger business corporations can obtain funds from capital platforms and equity-based funding sources. But, small businesses do not have this luxury. Thus, when they need fast business funding, many entrepreneurs often turn to banks and other financial institutions. What Are Some of the Most Common Myths Associated with Obtaining Business Loans? The experiences that people have often shape their beliefs. However, in some cases, bad experiences can lead people to form misconceptions or mis impressions. When these individuals share their views with others, myths begin to form. These myths can lead people (including entrepreneurs) to deal with fables rather than reality. For instance, consider the following myths that many small business owners have when it comes to obtaining business funding:
Only Banks Offer Business Loans: Banks are the first place that many aspiring entrepreneurs think of when they need small business loans. But, they are not the only place to go when you need business credit. In many cases, it’s best to approach banks if you require a large sum of money for a longer term at low interest rates. Otherwise, you could consider approaching merchant cash advance companies, micro-lenders, credit unions, peer-to-peer networks etc.
Obtaining a Business Loan is Tedious: The end-to-end process for a business loan at a bank is not only time-consuming. It can be quite cumbersome too. But, private lenders and other cash advance companies have been quick to capitalize on this by offering fast business funding schemes. These lenders have loan application processes that only take a few minutes. So, you could receive an approval on your loan within just a few hours.
You Need Impeccable Credit Scores: Banks tend to be more restrictive when it comes to credit scores. But, credit scores will not be the definitive factor on which banks and other lenders will provide you funding. All lenders will consider a host of criteria when they scrutinize your loan application. These factors could include the
business cash flow, the personal investment, the industry type, the years the business has been functioning etc.
Loans of Lower Amounts Are Easier to Obtain: Many entrepreneurs succumb to the myth that they shouldn’t ask for too much money when applying for a loan. But, this is not true. Whether you need $50,000 or $250,000, banks will follow their established processes and procedures. In some cases, asking for lesser money might be counterproductive too. Some banks only offer business loans upward of a specific amount i.e. $250,000. So, if you need a higher amount and ask for lesser than that, you might need to look elsewhere. Study your requirements carefully before determining the amount of money you need. If you ask for too much, the lenders might feel that you’re out of touch with the reality of your business. Similarly, if you ask for too little, you might exhaust your funds much faster and have to re-apply for credit all over again. Do You Need Fast Business Funding for Your Venture? Taking out a small business loan might appear daunting to many aspiring entrepreneurs. As long as you prepare well beforehand, you will encounter few hassles when you commence the loan application process. It also helps to have immense confidence in your business. For, that is the key to obtaining the amount of credit you need. If you can champion the prospects of your business confidently, your confidence will invariably rub off on the lenders. And, that could help you convince them and win their approval. At Midwest Corporate Credit, we help connect hundreds of small business owners with America’s institutionalized lenders. We know that lending is not just about numbers. It involves a distinct human element as well. Our staffs comprise experts who have spent more than 10 years networking within our network of lenders. They can not only determine the best financing mix for your business. They can predict the approval patterns of lenders in our database as well. So, you can look forward to your application not only reaching the right place, but also reaching the right hands. Check out details about our business credit lines here.
http://midwestcorporatecredit.com/fast-businesscredit/