The adage “you need to have money in order to make money” is as true on today’s fast-paced, hyper-competitive business landscape as it ever was; or arguably even more. Indeed, windows of opportunity close rapidly, and to evoke another adage: “to the victors go the spoils.”
As a small business owner, you may be staring through a window of opportunity right now in the form of a potential acquisition — one that would significantly enhance your competitive advantage, capacity and profitability. However, to transform these key goals into bottom-line gains, you need to steer clear of myths and misunderstandings.
To that end, here are 3 misconceptions about applying for a business acquisition loan that you need to know now vs. later:
Misconception #1: You must be an established enterprise to get a business acquisition loan.
The reason that many established enterprises exist is because when they were smaller, they acquired the right businesses, at the right time. As a small business owner, you can certainly follow that well-forged path. Just make sure that you don’t waste your valuable time trying to get banks to lean forward. You’re likely much better off working with a firm in the alternative lending marketplace, which has experience helping small businesses grow into large enterprises.
Misconception #2: You need collateral to get a business acquisition loan.
Again, this is a bank-perpetuated misconception. There is no law or rule that says small business owners must pledge assets in order to secure a business acquisition loan. For example, here at National Business Capital we offer several unsecured (i.e. collateral-free) loans that can be used for business acquisition purposes, or any other expense of investment.
Misconception #3: You need to wait several weeks or months for your business acquisition loan application to be assessed (though not necessarily approved).
In business, time is always of the essence. But when the focus shifts to a potential acquisition, this truism is even more of a factor — because other potential buyers may be involved, and sellers may head in another direction.
While it’s true that banks take an excessively long time to assess a business loan acquisition application — waiting several months is common — this is by no means the only option. For example, at National Business Capital we assess all loan applications within 24 hours, and upon approval we typically have 100% of the funds available to our customers within a week.
The Bottom Line
Contact us today to learn more about our business acquisition loan solutions. Or you’re ready to move forward right now, start your secure online application and we’ll be in touch within 24 hours. We look forward to being part of your long-term growth strategy and inspiring success story!
If you’ve been turned down for a business loan before and are still looking for funding, you’re not alone! Many of the wonderful people we work with at National Business Capital have previously applied for funding at a bank and learned how difficult the process can be. That’s why we wrote a free eBook entitled “How to Get Business Funding When Banks Say “No”” that walks you through funding options you have available and why banks turn down loans. Download it here: