If you own a small business, you may consider securing additional financing at some point. Maybe you need extra financing now, and do not know where to start. There are a number of misconceptions out there about commercial financing for small businesses, and it is easy to get confused or misled. Let us look at some of the most popular myths and compare them to reality.

Myth: New businesses will experience many loan turndowns

Reality: While traditional lending channels see many new and small businesses as high-risk candidates for loans, commercial financing is a different story. Commercial financing lenders understand the challenges facing new and small businesses, and have created programs designed to be accessible to entrepreneurs that may not have the credit ratings, collateral, or financial history to secure traditional loans.

Myth: Approvals can take a very long time

Reality: Banks and similar lending institutions have a lot of bureaucratic steps to go through before a loan application gets approved. Commercial financing takes a different approach. Because commercial lenders are not huge institutions like major banks, the chain of command is much shorter. Approvals and processing are typically performed in-house to expedite financing requests for business owners can access the funds they need quickly and efficiently.

Myth: Commercial finance professionals only focus on credit ratings

Reality: Commercial financing programs go beyond loans. Businesses can access funding solutions that do not require credit ratings or even collateral for that matter. There are even commercial financing programs that do not place debt on the balance sheet. Commercial finance professionals are more focused on creating tailored solutions to keep businesses on an upward trajectory, because success builds a strong relationship and ensures the financing will be repaid.

Myth: Commercial financing is impersonal and won’t pay attention to my business

Reality: This could not be further from the truth. Commercial lenders rose to prominence over the past 20-plus years because no one wanted to deal with prohibitively high requirements or cookie-cutter loans. Most commercial lenders built up their resources by running successful businesses in the private sector, and then decided to help out other entrepreneurs by listening to their needs and providing solutions to help them reach their goals.

Golden Century Lending is a commercial lender that provides solutions to small businesses across all industries. To learn more about our commercial financing programs, contact our offices today.