Today, we have easy access to information online which makes it easy for modern entrepreneurs to find advice regarding funding for their business. However, for every piece of accurate, helpful information, there’s a lot of other misinformation and myths regarding small business lending. In this blog, we’re going to take a look at some of the most common misconceptions of small business lending.

Approval takes a long time

One of the most common questions that people have when it comes to business lending is how quickly they can get the funds in their hands. You may be told that the approval process can take weeks and even months. While this may have been true in the past, it’s not anymore. Business owners today can have their application completed within an hour and it can be reviewed/approved within 24 hours. Many times, borrowers can have their funds within 2 days.

New businesses don’t qualify

Startup funding can be complicated. You need to have a business to get business lending- but you need the cash to start a business. The most popular route is to find venture capitalists or angel investors- but these are not your only options. Some lenders offer startup loans that require little to no business credit history. These business lending options look at your finances and credit history. It is important to keep in mind that you will probably get less favorable rates than an established business would. However, if you are committed to finding business lending options and open to the conditions you might face, it is possible to get funding for a new business.

Online lenders have unreasonable rates

Since online alternative business lending options are so new, many people are still skeptical of them. There are lots of dishonest lenders out there. That being said, some lenders in this market offer single-digit interest rates. Those who have higher rates typically work with high-risk borrowers. A business owner that has been turned down for traditional funding may find what they need through an alternative lender.

Loan officers are only concerned with your credit score

This myth is carried over from the obsolete traditional bank loan model and leaves business owners who don’t have great credit feeling pretty bad about their potential funding options. However, the alternative lending market has broadened the scope of what is considered on the loan application.

Many lenders consider the revenue history of the company, cash flow statements, and other financial documents to determine your eligibility for a loan. Still, it’s important to keep an eye on your credit report and score and make your debt payments on time and responsibly manage credit usage.

Approval is not personal

At one time, entrepreneurs who needed business lending could visit their local bank, build relationships with the managers and loan officers, and be sure that the whole picture behind the application was seen. Now, technology has made the process much less personal, since you are no longer dealing with loan officers face-to-face.

However, even though you are not looking the loan officer in the eye, it’s not as impersonal as it seems. Lenders do look at more than just number-based factors. They also consider things like your marketing and business plans. If you are worried about things like your credit score, write out a business plan explaining how the funds will be used and how the business will be successful.


When it comes to business lending, there is a lot of false information out there, so it’s easy to get discouraged. However, DAL Commercial Capital can help you get the funds you need so that your business can succeed.