Financing Myths and Misconceptions – these nine are nonsense!

Being a small business owner brings many challenges, one of which is understanding when and how to seek financing for your company. SMEs require financing for all sorts of reasons – to help them grow, expand, deal with seasonal variations and working capital fluctuations. 

It’s a big bad world out there, financing myths and misconceptions are two-a-penny, and it can be hard to see the wood for the trees and pick out the truth. As a trusted leading finance provider in the Irish market, GRENKE has put together this financing myth-buster guide for SMEs. 

1.      A start-up business can’t get a loan
It’s true that it can be more difficult to get financing for a new business, but it definitely isn’t impossible. GRENKE is an experienced specialist for start-up financial consulting and support – it costs nothing to get in touch. 

2.      A business needs a perfect credit rating and established history to qualify for financing
This is a very common misconception, but you’ll be glad to know it isn’t true. According to Fluidly even with a poor credit rating you can qualify for a business loan. Of course, the better your credit rating is, the easier it will be to borrow and the wider your options will be. 
3.      Obtaining business financing is time consuming and requires a lot of paperwork
The prospect of being knee-deep in paperwork often scares SME owners off the idea of financing. suggest that you can find alternative methods of financing to avoid this problem.
This is why it’s so important to talk to a specialist like GRENKE at an early stage, rather than waste time with repeated form filling and submissions. We’ll give you an accurate idea of what your options are – and help you when you decide what direction to go in. You’ll find that using non-traditional lenders can cut the red tape in half. 

4.      An inconsistent cash flow means you won’t qualify for business financing
This really isn’t true. There are all sorts of reasons why a business might have an inconsistent cash flow and not all of them are negative. Talk to us at GRENKE and you’ll be pleasantly surprised at your options. 
5.      Small businesses cannot apply for larger loans
Oh yes, they can. In fact, some small businesses secure very large loans indeed. You will need to show that you can make the repayments and you will need evidence to prove that you are in a sound financial position. 
A good business plan outlining cash projections and business goals will help as well. Don’t let your size compromise your ambition.
6.      Businesses only need outside funding when they’re not doing well or failing
Now this really is nonsense. Businesses need finance for all kinds of different reasons. Applying for finance is not a negative thing to do, it can be the difference between standing still and expanding to your true potential.
Your reason might be needing expensive new equipment or technology or perhaps you need more space to grow. Whatever it is, talk to GRENKE and we’ll help you choose the best option for your specific situation.
7.      You shouldn’t seek financing because of the debt you’ll incur
This is a dangerous myth according to The Business Backer. Of course, you will incur debt when you take on financing but once you take a sensible approach, get the most appropriate type of funding and have a solid repayment plan, there just isn’t a problem. Most businesses would be unable to grow to their potential without financing.

8.      My bank won’t give me a small business loan so I can’t get funding blogs suggest there are many more options for financing than high street banks. At GRENKE we have many years’ experience of financing small businesses at all stages of growth. We will advise you on your best option.
9.      I can’t afford financing
This myth is based on fear and has no basis in truth. The whole point of financing is to choose an option that you CAN afford, based on your particular situation. GRENKE will help you explore your options and make choices that will not put you under pressure but will help you to maximise your business potential without delay. 
 Talk to GRENKE today!

As one of the leading financial service providers in the Irish market, GRENKE’s slogan is ‘Fast, Forward, Finance’. GRENKE offers entrepreneurs fast and flexible financial solutions through a range of services including leasing and invoice finance. We match the perfect financial solution to your unique business needs, from small businesses to large enterprises.

Over the last 40 years, GRENKE has provided leasing to numerous styles of businesses and organisations; sole traders, partnerships, public and private limited companies, associations and organisations, medical, health, and educational providers, public hospitals, semi-state institutions, Government bodies and so much more. 

Our expertise and strong market position are no coincidence. If you are a business owner looking for financial solutions in Ireland or advice on fast and flexible financing, click here talk to a GRENKE Account Manager today.