Alternative business loans and financing has become a lifeline for many small businesses, yet misconceptions still prevent some from taking advantage of these flexible funding options. Let’s debunk the top 10 myths about alternative business loans.

1. Alternative Business Loans Are Only for Businesses with Bad Credit

🚫 False! While alternative lenders do cater to businesses with lower credit scores, many also fund businesses with strong financials that need quick or flexible financing options.

2. Interest Rates Are Always Sky-High

🚫 Not necessarily. Rates vary based on risk, loan type, and lender. Many alternative lenders offer competitive pricing, especially compared to credit cards or cash advances.

3. You Need Collateral to Qualify

🚫 Wrong! Many alternative financing options—like revenue-based loans and unsecured lines of credit—do not require collateral.

4. The Application Process Is Complicated

🚫 Nope! Unlike traditional banks, alternative lenders offer fast approvals with minimal paperwork, often funding businesses in 24–48 hours.

5. Only Desperate Businesses Use Alternative Loans

🚫 Not true. Even profitable, well-managed businesses use alternative financing for expansion, inventory purchases, and cash flow management.

6. It’s Riskier Than Traditional Bank Loans

🚫 Not really. While terms may differ, many alternative loans offer flexible repayment structures, making them safer for businesses with fluctuating revenue.

7. You Can’t Get Large Loan Amounts

🚫 False. Many alternative lenders offer funding from $10,000 to $5 million, depending on revenue and cash flow.

8. Alternative Loans Hurt Your Credit Score

🚫 Only if mismanaged. Responsible borrowing can improve your credit, especially if the lender reports on-time payments to bureaus.

9. You’ll Be Locked into Long-Term Debt

🚫 No way! Many alternative loans feature short-term repayment options to help businesses avoid prolonged debt.

10. There Are No Legitimate Alternative Lenders

🚫 False. Reputable lenders, like Even Funding, provide transparent terms and ethical lending solutions for SMBs.

Final Thoughts

Don’t let myths prevent you from exploring the funding options that could fuel your business growth. If you need quick, flexible financing, alternative loans might be your best option.

Looking for a funding solution that works for you? Contact Even Funding today!