Business loans are perhaps the most typical way for organizations to fund their day-to-day operations. Today, they are offered by both banking and non-banking institutes. However, some people still approach this type of funding with a bit of cynicism. Most of this cynicism can be attributed to a few common myths that have always surrounded loans.
As a leading business loan consultant in Pune, we at Findestination would like to take this article as an opportunity to debunk these myths once and for all.
So without much further ado, here are 4 common business loan myths that you shouldn’t believe
1. Securing a Business Loan Can Take Months
There was a time when the process of applying for a loan was excruciatingly complicated. It could take weeks to months for a business owner to get a loan. Thanks to technology, things are not the same anymore. Submitting an application can be done online within minutes and the lender can grant you the loan within a couple of days without a hassle.
2. Business Loan Approval Requires Good Credit History
Many business owners believe that a perfect credit score is a must to secure a loan. This isn’t entirely true. While a good credit score does help with your loan approval, you don’t need your score to be perfect to convince a lender. Short-term business loans, in particular, adhere to a very generous approval process. That being said, acquiring a loan can become challenging if you don’t possess a decent track record or history of making repayments. So make sure to keep your credit score in check.
3. Only Large Businesses Get Loans
Small businesses hesitate to seek a loan because they believe it would be impossible for them to get it. While this is true for certain traditional banks, there are many other non-banking financial institutions that gladly grant loans to small businesses. In the last decade itself, several non-banking institutions have emerged in India that solely focus on SME loans.
4. Collateral is necessary to get a loan
Collateral can be intimidating and serves as a major factor that dissuades people from seeking loans. Again, if you are seeking a small business loan, then you can get a loan easily without any collateral requirements. You can opt for unsecured business loans, merchant cash advances, business credit cards, etc. to secure a loan without tying up your capital or assets as collateral.
Conclusion
Getting a business loan isn’t simple. Therefore, it would be wise to not make it any more challenging by harboring any of the above misconceptions. If you too seek a business loan and feel overwhelmed by the process, then perhaps the SME loan experts at Findestination can be of help to you.
With substantial experience in the finance industry to boast, Findestination has helped numerous businesses in Pune overcome the hurdle of securing SME loans. Perhaps we can do the same for you as well.
Call us now to schedule an appointment with one of our consultants to learn more about our services.