When it comes to small business lending and borrowing, myths abound. In today’s fast loan market where alternative lending options are increasing, it’s easier than ever to get funding for your small business. But traditional bank loans and payday loans have left a legacy of myths that new online lenders are working hard to debunk.
Myth #1: Getting Approval is Time-Consuming and Difficult
Until recently, there were few alternatives to traditional banks when it came to borrowing money. This meant that getting a small business loan required hefty paperwork and multiple appointments that can take upwards of weeks to months for final loan approval – or in many cases, rejection. While this may have been true 20 years ago, it certainly isn’t the case today.
With advancements in technology, small business owners can access instant approval for loans, which is big relief for many enterprising Canadians that need a loan quickly in order to cover an unexpected expense or grow their small business.
As an online alternative lender, Lendified is able to approve loans within minutes of a quick, paperless – and painless – application process, giving Canadian small business owners funding they can use almost immediately.
Fear of the process and hassle of traditional lenders should not hold small businesses back from achieving their long-term goals.
Myth #2: Alternative Online Lenders are “Shady”
Are online loans safe? For some time, alternative borrowing options were limited to payday loans or the local “jeweler.” Many of these predatory lenders exploit borrowers with sky-high rates and unreasonable terms. But today, safe and secure online loans are available, and reputable online lenders are working hard to reverse this perception.
At Lendified, your application is processed through a secure environment, protecting your personal and business information. Trust is the most important thing in this process, and so we’ve made security our priority.
Myth #3: Approval is Based Only on Cold, Hard Numbers
It may seem that online calculations and algorithms have replaced people altogether, shifting the focus from who you are and the potential of your small business to profits and credit scores.
In actuality, lenders look at a variety of factors when approving your loan. For example, Lendified’s “LendScore” model focuses on the reputation, hard work and potential of your business.
Preparation is still important for getting a small business loan, but worry and stress don’t have to be a part of the process. In the midst of unexpected expenses or brilliant new ideas, the last thing you need is to worry about business capital. Lendified will help you get funding quickly so you can get back to focusing on what really matters to you.