Common Small Business Loan Myths
Before Evolocity came on the scene in 2008, the only way to get financing for your small business was through a lengthy bank process. As the new kid on the lending block, business owners were naturally a little skeptical about getting their financing online from a fintech company that wasn't their bank. Things have changed a lot since then, we've funded thousands of small business owners across Canada, and yet there are still some myths about online loans that persist.
Myth #1: Approval for online small business loans take too long
One reason small businesses often consider online small business loans is because their banks are not able to meet their full needs. Banks are known to have long, tedious application and approval processes and this negative perception often gets projected onto the online world as well. Actually, Evolocity’s small business loan application can be completed in a matter of minutes and completely online. “Great, so applying was easy but now I’ll have to wait forever to actually see and money.” Nope! The funds can actually be deposited directly into your account in as little as 48 hours.
Myth #2: Online loans are not secure
This is a myth stemming from the early days of the internet. Back in the days of dial-up, people were afraid of new fads like chat rooms and buying anything with a credit card online. This general fear of submitting your information over the internet spilled over into the financial world. For years, people were still hesitant to do their banking online! It should come as no surprise that this includes applying for loans as bank statements and credit information needs to be provided.
We have actually covered this topic in depth before and you can read it here. Obviously, online security has come a long way and without diving too deep into this topic again, you should feel 100% safe applying for a loan online, granted you trust the company you are dealing with.
Myth #3: You have to have perfect credit
A lot of small businesses don’t have perfect credit, it’s the reality of operating a business in a difficult environment. When receiving a decision for a loan at the bank, you can be sure the most weight is placed on your credit score. With many alternative lenders, this isn’t necessarily the case. At Evolocity, we have a proprietary decisioning model that factors in all kinds of data, that helps us determine the health of your business aside from just your credit score. If your business is healthy chances are imperfect credit scores can be overlooked and you can get the financing your business needs.