Many people believe banks are the sole source for business loans. However, there is a thriving market of non-bank lenders. Alternative lenders can offer more flexible terms, while online lenders can provide faster application processes. Non-bank lenders may also consider a wider range of factors in applications. Exploring both traditional and alternative lending options can increase your chances of securing the right loan for your business.

Contrary to popular belief, loans aren't just for businesses in financial trouble. Loans can fund growth opportunities, help purchase new equipment or inventory, finance the hiring of new employees and support various expansion needs. Successful businesses often use loans strategically to fuel their growth and capitalise on opportunities.

While interest is a cost to consider, it's not always prohibitive. Some lenders only charge interest on the funds withdrawn, and early repayment options may reduce overall interest costs. Additionally, the benefits of the loan can outweigh the interest costs, especially as interest on business loans is often tax-deductible. It's important to calculate the potential return on investment, versus the interest cost, to make an informed decision.

This misconception often deters business owners from applying, but it’s not always true. Alternative lenders frequently offer streamlined processes, and online applications can be quick and straightforward. Some lenders even offer same-day decisions with technology making the application process more efficient. Don’t let fears about a lengthy application process stop you from exploring loan options for your business.

While credit is important, it's not the only factor lenders consider. Alternative lenders look at other aspects of your business, such as cash flow and revenue, which are often key considerations. Some lenders focus on day-to-day operations and a strong business plan can sometimes outweigh credit concerns. Even with less-than-perfect credit, you may still qualify for a business loan.

This misconception often leads to under-borrowing, but in reality, lenders assess your ability to repay, not just the amount. Asking for too little can be as problematic as asking for too much. It’s important to calculate your needs accurately before applying and be prepared to justify the amount you're requesting. Don’t let this myth prevent you from asking for the amount your business truly needs to succeed.