With many positive things, negatives are always the companions, right? Yes, it may be true. In fact, you may have heard some negative things about the short-term business loans as well, but there is good news. All the fallacy you’ve heard is simply based on the misleading and vague information.
Hence, if you need some extra cash but hesitate to move forward just because of some misleading myths, you should not! The idea of taking a small business loan is great because it will help your business grow and improve. No doubt, you might have heard that taking a short-term business loan is merely impossible to be approved. But, you shouldn’t always believe on what you hear!
Well, here are the 5 fallacy to burst about the short-term business loan:
1. You need to have Faultless Credit History to get a Short-Term Business Loan
Are you having a poor credit history and afraid that your small business loan will be disapproved by the lender? Well, it’s not true at all! Although the traditional concept of taking loan required a sound credit score, today’s lending environment is more open to subpar credit ratings.
But, there’s nothing to worry about because approval of a short-term business loan largely depends upon the ability to repay the amount of loan taken. If you’re successful in convincing your ability to meet your current financial obligations and have sufficient income then there are no chances of loan rejection. Still, if you have a threat that having bad credit will be an interruption in taking a business loan then you should be stress-free. A short-term business loan is a great way to fulfil your financial needs. In fact, taking a loan from a pawn shop or an investor will help you satisfy your financial crises as they don’t need any credit history.
The only thing you need is a valuable asset which can be given as a guarantee to the pawnbroker and in return, you get the loan amount required.
2. Getting a Short-Term Business Loan is the hardest thing amongst all
Getting a short-term business loan is not a rocket science. Small business lending experts agree that the best way to avoid trouble is to prepare for challenges that application process may present. You need to have that power to convince the lender. If you can crack the situation, there are more chances that your loan gets approved.
You need to be prepared with all the documents that are asked by your lender. In fact, a professional short-term lender will work closely with you to ensure that you get the best solution for your financial crises. Hence, if you’ve ever heard the myth that getting a short-term business loan is the hardest things you’ll ever do, it’s not. Well, it’s better to experience it by yourself!
3. If the Loan Amount is too small, you won’t get the Funds
Yes, it’s true! Formerly borrowing funds was difficult for the business owners. Those who needed more amount of finance, more preference were given to them. In fact, high-interest business credit cards were often the only option for the entrepreneurs needing credit to grow their business.
But, these days the concept of borrowing a short-term business loan has changed. No matter if you want a small amount of loan, you can get it approved. All you need is the accurate documents that are mandatory for the lender. In fact, there are many intermediaries who offer a small amount of loan as well. You can get your business started with the help of taking small term loans from small intermediaries who are ready to approve your loan amount.
4. There will be Hidden Terms and Conditions while taking a Short-Term Business Loan
Yes, you may have heard this myth from many people. They may be threatening by saying that short-term business loan companies mislead consumers by deceiving hidden fees and interest rates, but it’s not correct. You can easily get an accurate estimate of the total cost of your loan before you’ve even applied for it.
The lenders offer a clear repayment schedule so that you can exactly know how much you have to pay and in what time! Hence, there’s nothing to worry about as there are no hidden charges when taking a short-term business loan.
5. Only People with Financial Crises Use Short-Term Business Loan
It’s very obvious that people who earn money are going to spend it. No doubt, will save a little from that but what to do when you’re confronted with an unexpected cost? Cost such as medical emergency or unexpected car expenses is not in our hands. Hence, this is the time when you find yourself stuck with the need of emergency funds.
And in such situation, if you don’t have a good credit history, there’s nothing panic about. A bad credit cash loan is a great solution to your situation. You can take a bad credit cash loan and fulfil your emergency need of finance.
Want to Know More? Explore this Simple Guide To Short Term Business Loans
If you’re having a poor credit score and looking for a short-term business loan, call us on 02 9630 6613. At Cash Fast Loans we offer instant cash loan ranging from $500 to $80,000. Hence, you can borrow your loan amount against any of your assets say, for example, Car, Motorcycle, Jet Ski, Boat, Machinery, Truck, or any other valuable. Don’t hesitate; turn your asset value into instant cash now!