Acquiring a loan with a mindset clouded by misconceptions can be costly and dangerous as it leads to poor business decisions. With this in mind, these are some often misconceptions about loans. 1. Poor credit score means no loan Traditional loan lenders might still be rigid however, it might be worth talking to other lenders […]
Boosting small businesses
Acquiring a loan with a mindset clouded by misconceptions can be costly and dangerous as it leads to poor business decisions. With this in mind, these are some often misconceptions about loans.
1. Poor credit score means no loan
Traditional loan lenders might still be rigid however, it might be worth talking to other lenders who would be willing to listen and know more about your cash flow. Remember to be truthful about your current financial situations. You never know, there may be reasons that make you qualifiable for a loan.
2. Only failing businesses need a loan
Loans are not only required for failing businesses and should be seen as part of the business plan and process as it grows. As your business expands, a loan can be considered an investment opportunity; when used to buy more equipment. However, keep in mind that the loan is a debt that should be cleared.
3.No large loans for small businesses
Having a small business does not automatically disqualify you from getting a large loan. The most crucial aspect that lenders look for is whether you can demonstrate that you are a sound prospect as a borrower. Having a sound business plan or banking the growth of the business on a market trend may be a boost needed to acquire the amount you want from your lender.
4. Only banks give business loans
Banks might be the most popular and traditional lenders of business loans, but the number of alternatives to banks keeps growing around the world. Such lenders include Newark Frontiers who give business loans for startups and already existing businesses.
The list of misconceptions is endless. To rule out these, it helps to view loans like friendships since they are both about the push and pull, being informed on terms and conditions, knowing what you need and choosing one that suits you best.
If you have questions about small business loans, contact our experts at Newark Frontiers. We are here to help guide you along the way.
