Top 5 Loan Myths Debunked
Believing loan myths can cost you time and money. We’re busting the top 5 finance misconceptions holding business owners back—and what to know instead.
Confused by all the loan advice out there? You’re not alone. Let’s set the record straight.
Why This Matters
Whether you’re applying for a vehicle loan, equipment finance, or working capital, there’s no shortage of “advice” online. Unfortunately, a lot of it is outdated, misleading—or just plain wrong.
At Thrift Capital, we help business owners and entrepreneurs navigate the finance world with confidence. So today, we’re clearing up five of the most common myths we hear every day—and giving you the facts to make smarter decisions.
Myth 1: “You need perfect credit to get approved.”
Truth: A less-than-perfect score doesn’t disqualify you.
While credit history matters—especially for unsecured loans—it’s only one part of the equation. Lenders also consider:
Cash flow or bank statements
Business stability
Loan purpose and security
Industry experience
Plus, we work with specialist lenders who are open to low-doc and new-ABN applicants, even with limited credit history.
Myth 2: “I can only get a loan if my business has been trading for over 2 years.”
Truth: New businesses can get finance too.
Many think they need years of tax returns to qualify. But lenders now offer finance options for:
Startups
Sole traders with new ABNs
Side hustlers going full-time
If you have solid industry experience, a clear loan purpose, or asset security (like a vehicle or machine), you can likely get approved.
Myth 3: “All lenders are the same—just compare rates.”
Truth: Not all loans—or lenders—are created equal.
Rates are important, yes. But so is:
The speed of approval
Flexibility of repayments
Ease of document requirements
Pre-approval conditions
Balloon options or seasonal structures
Some lenders are better suited for your industry, cash flow, or equipment type. That’s why working with a broker makes a real difference.
Myth 4: “Applying for finance will hurt my credit score.”
Truth: Not always—and not if you do it properly.
Multiple applications with the wrong lenders in a short time can hurt your score. But when you work with a broker:
Your application is strategically placed with the right lender
We often start with a soft credit check or pre-assessment
We avoid unnecessary rejections
Bottom line: one well-placed application is far better than going it alone and hoping for the best.
Myth 5: “If I got rejected before, I won’t get approved now.”
Truth: Rejection isn’t final—and it’s often fixable.
Many applicants get declined simply because they:
Applied with the wrong lender
Had missing documents
Didn’t structure the application clearly
We’ve helped dozens of clients who were previously rejected get approved within days—just by matching them with the right lender and repackaging the deal.
Final Thought: Know the Facts Before You Apply
Finance doesn’t need to be complicated, but it does require clarity.
By knowing what lenders actually look for—and avoiding the common myths—you can make better decisions, access better deals, and save time (and money) in the process.
Need Help Navigating Your Options?
Talk to a Thrift Capital broker today.