Myths About Small Business Funding

Many small business owners at some point find themselves at a financial crossroads. They have built their business to the level that requires more working capital than they have on hand. The reasons for their financial requirements are often for expansion, additional staff and/or equipment. Sometimes that narrow window of opportunity opens and they find that do not have the cash on hand, to take advantage of the offer, yet do not want to pass. Personal loans, credit cards, or perhaps a personal line of credit have taken their business to its present level – but in order to advance, what are their options? When it comes to small business funding, there are some common misconceptions that often hinder business growth:

Lending Myth 1: Banks Are The Best Source for Funding a Small Business

Not so! The same bank where you opened your first savings and later your first checking account are not likely to also extend you a loan for your small business. Banks do not make much money off these loans which also have a high default rate. In an uncertain economy, many traditional lenders have greatly limited the number of these loans they will extend and have raised their lending criteria, making obtaining a small business funding from a traditional financial institution increasingly difficult.

Instead, turn to National Business Capital. As an alternative lender, we are not restricted by the same regulations as the banking industry. We are highly reputable, reliable and do not base our loan criteria on FICO score alone. We have an over 90% approval rate and the money is available in days not weeks. Many of our clients had been turned down for loans by their banks.

Lending Myth 2: Ask for Less Than You Require and You’re More Likely to Obtain Funding for a Small Business

Where is the logic in this? What is the point of asking for less funding than your business requires? At National Business Capital we work with you and your business to ensure that you receive the funding you need, when you need it. We usually make our loan decisions within 24 hours after the application is received. Our application takes two minutes on average to complete. When making our funding decisions we look at the big picture, not just your credit score or if you have or have had personal or business finance issues in the past.

Lending Myth 3: My Bank Can Get Me Small Business Funding Fast

Not likely. Banks are highly regulated and their loan criteria requires extensive documentation and paperwork. Decisions cannot be expedited and once approved, funds are not immediately available to borrowers. So if you are looking to jump on a one-time and time-sensitive business opportunity, you bank’s loan application process is not going to work for you.

Instead, turn to National Business Capital. Many of our clients have previously been turned down by their banks when they were seeking funding for a small business. With our stellar over 90% approval rate, our loan applicants know where they stand. We can get back to them within 24 hours with our decision which is not based solely on their FICO score. Even an open tax lien is not an immediate disqualification. Once approved, funds are deposited in your account within days, not weeks or months as with traditional lenders.

Lending Myth 4: A Spotless Credit Record is Required to Receive Small Business Funding

In a perfect world we would all have a blemish-free credit record. In reality, life happens. National Business Capital realizes that financial emergencies and contingencies occur in every life and every business. That is why we do not just consider a business owner’s credit score when we make our loan decisions. In fact, an open tax lien does not present a roadblock to receive funding for a small business. At National Business Capital we consider many factors- the big picture, if you will- and strive to find the right funding sources for every small business. We want to establish an on-going business relationship with our clients. Let National Business Capital be your business’ financial lender. Now and going forward we will work together to achieve your business goals. Give us a call today at (888) 888-9164 or fill out our convenient form. Let’s collaborate to build your business!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.