Small business financing myths and misconceptions explained
Journey Capital TL;DR: Don’t let myths block your funding. Today’s small business financing is fast, flexible, and accessible, with no need for perfect credit, not limited to banks, and more options than most owners realize.
Don’t let myths hold your business back
Financing is a powerful tool for growth and stability. Outdated beliefs and misconceptions can prevent you from exploring the best solutions for your business. Let us set the record straight and help you make confident, informed decisions.
Myth #1: You need perfect credit to get approved
Reality: Modern lenders, including Journey Capital, look at more than just your credit score. Revenue, time in business, cash flow, and industry all matter. Even if your credit is not perfect, you may still qualify. Do not count yourself out before you apply.
Myth #2: Only banks offer legitimate business loans
Reality: Online lenders, credit unions, and fintech platforms now play a major role in small business financing. They often provide faster, more flexible options than traditional banks. Explore all your options to find the best fit for your business.
Myth #3: The application process takes weeks or months
Reality: Many lenders offer simple online applications with fast decisions. Journey Capital can fund businesses in as little as one to two business days. Today’s financing is built for speed; do not let old assumptions slow you down.
Myth #4: Merchant Cash Advances are always a bad idea
Reality: Flex Funds Advances, Journey Capital’s version of merchant cash advances, can be a smart solution for businesses with fluctuating revenue that need quick working capital. The key is choosing the right product for your needs, not relying on reputation alone.
Myth #5: You can only have one loan at a time
Reality: Many businesses successfully manage more than one financing product, such as a term loan plus a line of credit. Journey Capital even offers Dual Financing for eligible businesses. You can combine solutions; just make sure your cash flow supports repayment.
Myth #6: Only large or established businesses qualify
Reality: While banks may prefer bigger businesses, many online lenders work specifically with small and medium-sized companies, including sole proprietors. If you have been in business for at least six to twelve months and have steady revenue, you likely have options.
Myth #7: Getting a business loan means giving up control
Reality: Loans do not require giving up ownership. Unlike investors, lenders do not take equity or influence your decisions. You keep full control; just make timely repayments.
Myth #8: All business loans are the same
Reality: From lines of credit to term loans to merchant cash advances, loan structures and terms vary widely. Each serves a different purpose. Choose based on how the financing works for your business, not just the rate.
Why choose Journey Capital?
Journey Capital helps Canadian small businesses cut through the confusion. We offer fast funding, flexible repayment options, and financing built for real-world needs, even if your credit is not perfect. With an easy online application process and honest guidance, we make financing clear and accessible on your terms.
FAQs
Possibly. Journey Capital and other lenders may consider businesses with at least six to twelve months of steady revenue.
Online lenders typically offer simpler applications, quicker decisions, and more flexible options designed with small businesses in mind.
Yes, if you choose a reputable lender. Look for transparency, fair terms, and secure platforms. Always check reviews.
Think about your business goals, cash flow, and repayment ability. A good lender will help you match the right product to your situation.
Dual Financing is unique to Journey Capital. It lets you combine a Business Term Loan or a Flex Funds advance with a Business Line of Credit for maximum funding flexibility.
Do not let myths or misconceptions stop your business from moving forward. Explore Journey Capital’s fast, flexible financing options tailor-made for Canadian small businesses.