Online Small Business Loan Myths Debunked
When merchants discuss online small business loans, there’s often a great deal of hesitation and uncertainty due to myths surrounding the loan options. As online small business loans have become more common over the last decade with banks tightening who they lend money to, these alternative loans are often the best option. However, due to the myths in place about online loans, many merchants refuse to use this as an avenue to get the business capital they need. Business Loans Direct is here to debunk the myths about online business loans.
Myth: They are too expensive
Often, business owners believe online business loans are simply unaffordable due to high annual percentage rates when compared to loans offered through the U.S. Small Business Administration. This is true in a sense. Some online small business loans do have high rates, while others don’t. There are extreme differences in rates based on who the lender is, which is why it’s essential to conduct research to find the company with the lowest rate prior to borrowing money.
Myth: You have to have good credit
Many online lenders, like Business Loans Direct, work with businesses who have poor credit history. Unlike traditional lenders, many alternative lenders don’t require a positive credit history in order to get the funds you need. Alternative lenders look at your protection for future sales and past sales to determine lending. Therefore, if a businesses has strong sales, they will receive the funds they need despite a poor credit history.
Myth: They don’t lend enough
Again, there is some truth to this depending on the online small business loan company you choose. Some online lenders have a cap on how much they will loan, while others will loan amounts into the 6-figure range. Depending on the nature of the business and the projected future of the business, online lenders can deliver large amounts of funds to give you the capital you need.
At Business Loans Direct, we understand that online small business loans often have a bad rap due to the false myths and misconceptions surrounding them. We’re here to prove those myths wrong by showing you that alternative lending is not only an affordable option, but a smart option. Contact Business Loans Direct today to discuss loan options for your small business.