When it comes to small business funding, there are a lot of different options to help your company grow. It can be very difficult for a small business to obtain a traditional bank loan, often making alternative financing a better option. However, there are some misconceptions that can make business owners wary about applying for alternative funding. Let’s look at some of these misconceptions so that you can better understand alternative financing and see if it’s right for your small business.
Myth 1: Alternative financing is for businesses who have bad credit
Although alternative financing is a great option for businesses who may not have perfect credit, it is not the only reason one should consider this option. Applying for alternative funding does not mean that a business has bad credit or is struggling—instead it means that a small business wants to take advantage of the benefits that alternative financing can offer. Alternative lenders tend to have more flexible terms than a bank and can be the best choice for any small business, regardless of credit. Business debt can have a negative impact on your personal expenses and with alternative funding, you can help finance this debt and improve your credit score. Furthermore, business owners often need working capital immediately, such as to cover unexpected expenses. Alternative funding is a much faster process than applying for a traditional bank loan. With CFG Merchant Solutions, you can be approved within 24 hours, and receive funds soon after!
Myth 2: The process of receiving small business funding is difficult
Getting a traditional bank loan can be a long and complicated process for a small business, so some business owners think that alternative financing is the same. On the contrary, alternative funding with CFG Merchant Solutions is quick and easy! All you need to do is complete a short application and submit a few documents. Then, a team of underwriters will review your documents, and if approved, you can get funding shortly after. CFG Merchant Solutions offers a variety of small business funding options to best fit the needs of your small business.
Myth 3: You need connections and experience to obtain alternative funding
Even if you are a new small business, you can still obtain alternative funding. Alternative financing companies are eager to help your small business grow! Although it could be a good option to turn to peers or crowdfunding to fund your small business, you may not receive the funding amount you need. You don’t need to know a guy, who knows a guy to get business funding from alternative lenders. Just make sure to keep a sense of how much funding you desire and how much you can afford in loan repayments. As long as you are knowledgeable, passionate and provide sound financials, your business should be approved for alternative funding.