4 Myths About Small Business Lending

By: First Union | Date:

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4 Myths About Small Business Lending

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We'd like to take a moment to clear up some confusion regarding small business lending, your odds of getting approved and the process through which you must go to receive funds. There is definitely some incorrect information out there regarding what this type of lending is all about, and also regarding how alternative and online lenders fit into the picture. These are four myths that are simply not true…

If you get rejected by the bank, you're out of luck. This is far from the truth. Unfortunately, banks have been tightening their standards and requirements over the course of the past decade. In some instances, if you're a small business, especially a relatively new one, it may be impossible to get a bank to look twice at you. Here, however, is where online lending really has changed the game. Alternative and online lenders have vast resources at their disposal, and they want to help! They look at all aspects of your application, not just one number or score. You do have a valid chance of being approved even if a bank rejected you first.

You need the money now, but it probably won't come through for weeks. Again, with traditional banks this is likely going to be the case; however, with alternative lending everything is streamlined, to include the length of time it takes to receive the funds. From application to underwriting, to financing, it really can be completed in a matter of a couple of days.

If you need to borrow a smaller amount, it is harder to find funding. With online lenders, they specialize in smaller loans at shorter terms. For instance, at First Union, we have loan products that start at 5k. We're not merely looking for those so-called "big fish"; it's about truly helping smaller businesses—whatever their needs.

With small business lending, you have large monthly payments. Not true at all. Depending on what type of loan you get, you can make smaller daily payments. And with certain programs, when business is slower, your payments will reflect this. Again, it's about accommodating clients and being flexible enough to get you what you need when you need it.

First Union is the perfect lender. We want to see your business grow and thrive. With our loan options from short term loans to lines of credit, your business can do so. Call today!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well.

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