How It Works
What are Micro Loans?
Micro loans help enterprising individuals launch and grow small businesses. They promote stronger communities and local economies by supporting families and creating jobs.
In banking terms, a micro loan is a very small loan ranging from $500 to $100,000. Historically, banks in the United States haven’t particularly liked dealing with micro loans because they have not been profitable financial products for them to market. However, alternative lenders are finding innovative ways to help small business owners while also making a profit by offering these smaller amount loans.
Is it right for you?
Before you begin the process of applying for any type of business financing, it’s always a good idea to first clearly evaluate where your business is now and where you want it to go. If money is required to get it from point A to point B, the next step is to consider how much money you need and your options for getting the funds.
Many business owners start with their own bank. In some cases, this is the best option. Lines of credit and home equity loans may be the best choice. However, if you have weak credit or a lack of credit, you will most likely need to look elsewhere. This is when a micro loan might be worth taking into consideration.
While we do review credit, we look more “big picture” when it comes to your business as opposed to just basing our decision on your credit score. A well-thought-out business plan goes a long way to help gain funding. Most micro lenders want to talk to you and understand your plans. Having your marketing efforts mapped out, along with a good understanding of monthly expenditures, help paint a clear picture of what you’ve been able to accomplish so far and what you need in terms of financing to grow.
Micro loans are, without a doubt, helping many businesses grow faster both in the United States and globally. They are truly for any business owner who knows that a small amount of cash can make a huge difference when it is used strategically. Learn more about our Micro Lending Program today!
Please contact 540-479-4365 for further information.