CARTOONS BY CHRIS BRITT

– MICROLOANS –
In the banking industry, a microloan is any loan in the $500 to $100,000 range.
Typically they are between $35,000 and $50,000. These loans can be used for everything
from purchasing equipment,
inventory, machinery,
fixtures, furniture and
supplies to buying another
business. Loans are available
depending on the location
of the business and the
intended use of funds/loans.
Most lenders can finance a
maximum of 75% of the total
business project.
HOW DOES IT WORK?
Microlenders have varying
requirements regarding
the terms of the loan. A
loan term can range from
Mobile phones are the only subject on which men
boast about who has the smallest.
two to six years, with favorable interest rates and varying collateral requirements. Most
microlenders require a personal guarantee by at least one of the business’ owners.
For startups, you will be required to submit a business plan. Make sure the plan looks
professional and conveys how you are going to make money, something the lender will be
expecting to see. For established businesses, you will need your profit and loss statements
along with other financial information as requested.
In some cases, the lender will want you to fulfill certain business training and
planning requirements (which vary) before you can submit an application for a
microloan.
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