10 Myths Business Owners Have About Borrowing Money(That Just Aren't True)

Let’s be honest—borrowing money for your business can feel a little like going to the dentist. You know it’s probably a good idea, but you're already bracing for discomfort. The truth? Most of the fear around business lending is based on myths that need to be retired—permanently.

At Progressive Business and Finance, we’ve heard every excuse in the book. So, let’s clear the air (and maybe make you chuckle a little) as we debunk 10 common myths business owners believe about borrowing money.

1. “I only need a loan if I’m in trouble.”

Reality check: Waiting until you’re desperate to borrow is like waiting until your engine light comes on before getting an oil change. Funding is a growth tool, not just a lifeline. Borrow when you want to scale, not when you're sinking.

2. “If I borrow money, I’ll be stuck in debt forever.”

Reality check: This isn’t a credit card horror story. Business loans have clear terms and end dates. If you're using the capital to grow your revenue, that loan should pay for itself—and then some.

3. “My credit isn’t perfect, so why bother?”

Reality check: We get it—not everyone has a spotless credit score. But that’s not a dealbreaker. Today’s lending landscape includes options that look beyond your score and focus on your actual business potential. Welcome to 2025.

4. “I’ll lose control of my company if I borrow.”

Reality check: You're getting a loan, not a business partner who wants half your company and your parking space. A lender provides capital—not creative control.

5. “Interest rates are always sky-high.”

Reality check: Rates vary. And yes, there’s a difference between 6% and 36%, but context matters. A slightly higher rate may be a small price to pay for a fast solution that opens the door to major growth.

6. “Only big businesses get approved.”

Reality check: You don’t need a skyscraper or 200 employees to get funding. Whether you're running a bakery, a barbershop, or a bookkeeping biz, there are lenders (like us) who specialize in helping small and growing businesses succeed.

7. “The process is too complicated.”

Reality check: If you can fill out a food delivery order, you can fill out most funding applications. We've simplified it. No paperwork marathon, no confusing fine print—just a streamlined path to capital.

8. “I don’t have collateral, so I’m out.”

Reality check: Not true. Plenty of modern financing options are unsecured. That means no buildings, no trucks, no grandma’s jewelry needed. Just strong business performance or consistent revenue.

9. “Borrowing will wreck my business credit.”

Reality check: It’s actually the opposite—if you manage the loan well, it improves your business credit. It’s like working out: it might feel like effort now, but the payoff is strong, flexible credit that opens more doors later.

10. “I’ll wait until I really need it.”

Reality check: That’s like buying an umbrella after you’re already drenched. The best time to borrow is when your business is steady—so you can use the funds to strategically grow, not just survive.

Bottom Line: Smart Borrowing = Smart Business

Borrowing isn’t a last resort. It’s a business decision—and a smart one when done with the right guidance. At Progressive Business and Finance, we’re here to make funding feel less intimidating and a whole lot more empowering.

Let’s talk strategy, not stress.

Visit www.progressivebusinessfinance.com to explore flexible funding solutions made for real business owners—just like you.