Most Common Myths About Business Lines of Credit

Most Common Myths About Business Lines of Credit

Finding the capital to start your business is one of the hardest things a business owner will ever do. Your chances of success are a lot better than they used to be with rapid access to capital like business lines of credit.

There are still a lot of myths circulating about business lines of credit that stop some entrepreneurs from thoroughly vetting this option, so let’s put to bed some of the most common misconceptions.

Your Bank is the Best Place to Get a Small Business Loan

The truth is, many other organizations are happy to lend money to any small business looking to get started. Alternative lenders offer quick and easy application and approval processes, and you don’t have to jump through all of the same hoops that the bank requires. Alternative lending is faster and easier, period.

Entrepreneurs Can’t Get Business Financing

Anyone can get a business line of credit. The majority of businesses in operation today are comprised of people working for themselves. There are plenty of funding options and new programs available to meet the needs of your market.

The SBA Only Gives Grants

The Small Business Administration is a network that provides support to small businesses. They have programs that prepare you to request money from the government, but they also have very strict guidelines.

Online lenders like Quick Loans Direct offer faster financing for small business lines of credit without all of the hassles.

You Have to Have Perfect Credit

Even if you have bankruptcies and other problems on your credit report, you can still qualify for a business line of credit to start or grow your business. You may also take advantage of programs that help you rebuild your credit.

High interest rates

Alternative Lenders Charge Too Much Interest

It’s unfortunate that this myth exists because many still believe it to be true. Investigations into predatory lending practices revealed that many alternative lenders were taking advantage of people who couldn’t qualify through their traditional bank.

Today, you’re much better off getting a business line of credit with an interest rate in the teens to take care of all of the other credit card debt you may have with interest rates in the twenties.

If I Ask For Less, I’ll Get Less

While it may seem safer to ask for less money, you shouldn’t devalue your business or its worth. Work with a lender who can provide the capital you need so you can use it strategically, instead of limiting yourself to what you think you can get.

It’s Better to Borrow From Family and Friends

Unless your rich old aunt names you in her will, chances are, you’re not one of the lucky ones to come from a wealthy family. Nearly everyone is living in debt today. As willing as your family and friends may be to help, they have their own financial struggles.

Borrowing from family and friends is risky because if you can’t pay them back, it could damage the relationship. Court case after court case involves former friends or even family suing each other for money.

Take responsibility for your own success by getting a business line of credit form an outside source. You’ll worry less about your obligation to pay, and the flexible repayment terms can help you if you run into cash flow issues in the future.

Quick Loans Direct offers business lines of credit as well as many other options for same day funding for your small business. Take advantage of their easy application and approval process and get the money you need today.

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