Many small business owners searching for funding encounter myths that can hold them back from securing the capital they need. One common misconception is that only perfect credit qualifies you for a loan. While credit score matters, modern lenders often consider factors like cash flow, revenue, and business longevity. Another myth is that banks are the only legitimate source of financing; in reality, online and alternative lenders now provide diverse, accessible options. Some believe you can only borrow once, but many lenders expect and even encourage repeat financing as your business grows. Not all loans are alike; beyond term loans are bridge loans, lines of credit, equipment financing, invoice factoring, and more, each tailored to different needs. Business owners also sometimes confuse loans with equity financing, fearing a loss of control, but debt financing simply means borrowing money with a repayment agreement, without giving up ownership. Finally, the idea that applying for a loan is a tedious, months-long process is outdated. Today’s best lenders use streamlined, digital applications to make access to capital faster and simpler than ever. By separating fact from fiction, you can confidently navigate your funding options and make smarter growth decisions.
source: https://working-capital.com/articles/what-you-really-need-to-know-about-6-business-loan-myths/
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