Throughout this blog I will be listing 5 business loan myths that you may have heard and proving why you should think twice before believing them.
A perfect credit score is required
Ranking number one as the biggest myth told about business loans has to be that you need perfect credit in order to obtain one. However, this isn’t particularly true. Many people are under the impression that if they have had poor credit history then there is no point in trying to apply for a business loan. But being credit approved is still possible even if your credit isn’t ideal. Here at WestWon Dental, we pride ourselves upon our 95% acceptance rate. We will always try our best to get you accepted even if that means attempting through a variety of funders.
Loans are for struggling businesses
Despite this sometimes being the case with businesses that need a little boost to keep afloat. Many businesses acquire business loans purely for the cash flow benefits. Business loans act as an instant cash injection into your business, enabling you to spend your cash in the areas of need without compromising a healthy cash flow. This often acts as a catalyst for business growth as it allows businesses to invest in areas that they otherwise wouldn’t have in fear of disrupting a health cash flow.
Business loans can be used towards a range of different areas in a business, should that be towards new additions to the team for that extra help in hand, or for an entire practice fit out. Loans are great for supporting the growth of your business.
The business loan process is a long one
Before Covid it took longer than it did now to acquire a business loan. So, we actually have Covid to thank for a speedier process now. Physical document signing back and forth was often the most time-consuming part of the process. Now with the enlightenment of digital signing platforms such as Acrobat Sign makes it so that this can all be sorted within a day.
Stick with the banks
Banks used to be the primary source of funding for many companies. However, all companies have their different needs and conditions. Therefore, not one finance facility will be best suited to everyone. Also please bear in mind that if a bank should reject you, that they are not your only option. In fact, if you go through a finance company you will be keeping your existing lines of credit intact. Meaning that there’s no need for you to use up an existing bank facility.
There is a whole load of interest and hidden fees involved
This is not always the case, here at WestWon Dental we offer industry leading rates starting from just 2.5%! And we always ensure that we are completely transparent with our customers. Meaning no hidden fees nor hidden interest.
If you want to learn more about your business loan options and find a finance agreement best suited to the needs of your business, please get in touch. Give us a call on 01494 611 456, or send an email to email@example.com