Myths Of Short-Term Financing
Having unlimited and unfiltered access to the internet can be both a positive and negative thing. There is an endless surplus of information available at our fingertips that is just a keyword search and mouse click away. While this all sounds remarkable, there are a few downfalls. There is still a lot of incorrect or irrelevant information that can be uncovered online.
Entrepreneurs can discover necessary information about the ins and outs of owning a business at a more advanced level than ever before. But, unfortunately, for those without much of a financial background, being able to separate fact from myth can be difficult and, at times, detrimental.
When it comes to financing a small business, for example, a business owner can learn a lot through online research. But the amount of inaccuracies is surprisingly high. Don’t let misinformation be the reason you don’t pursue short-term financing for your business. Here are the 3 most common short-term finance myths that are misleading to business owners:
Myth #1: If you don’t have perfect credit, you will never secure a loan.
Having a perfect credit score is a high standard that not many can attain. Banks use your credit score to identify you as a candidate because, to them, the higher your credit score, the more likely you are to repay them back in a timely manner. A bank’s standards are rather strict, so if you don’t get approval through them, seek out a nontraditional lender. They will look at your credit score, of course, but they also take into consideration a few other factors, including: your cash flow, the age of your business, and your ending balances.
At EIN Cap, we are not as concerned with your credit score as we are in the performance of your business. We believe that looking at the entire picture of your business’ health will be more advantageous than judging you on your credit score alone.
Myth #2: The process of a short-term business loan can take months from start to finish.
When business owners think of a loan process, they think piles of paperwork and a long waiting period for funds. This may be true of more substantial loans, but a short-term business loan works rather quickly in comparison. The necessary paperwork and information does need to be sorted through, but, once approved, you should not have to wait more than a week to receive your funds.
If you acquire a loan through us, you will receive your funding within one business day after you have been approved. Why should you have to wait to get the money that you so desperately need to continue growing your business?
Myth #3: Startups do not qualify for business loans.
Just because you are a startup doesn’t mean that financial help is beyond your reach. You are just as good of a candidate for short-term financing as a more established business. The only difference is that, because you may not have as much proof of a successful business endeavor, your personal finances may have to be taken into consideration. As long as your personal credit checks out, that loan will likely be yours!
Don’t let these myths keep you from necessary funds! Learn more about EIN Cap and how we can help you secure the proper financing for your business.