There are situation when you have a very brilliant business idea but don’t have the initial capital to start it. You apply for loans for your business but it’s rejected because of your bad credit score or no credit records. Even sometimes loans are rejected for business after looking on your education and old business records. You are even being rejected because of not having a bank account which means no relationship with a banker. Tired of banks denying your business loan applications? Learn how to finance your dream without the frustration at Business-Soudan.com.
It is worse to be rejected in such a situation when you know that you have a profitable idea. Micro financing is an alternative to bank lending’s in such situations. Microfinance institutions which are also known as (MFI’s) provide financial help to business entities who fail to get help from traditional banks. There are huge numbers of such lenders in the United States and Mexico who follow this new trend of lending money.
MFI’s are different from banks but they work as banks only because they also lend money to those who are in need. The only differences in both are the criteria to qualify for the loan amount. Giving money for business, they also provide counseling sessions and guidance for business on which they are investing. Each MFI’s have different terms and condition regarding the loan amount to be provided to the borrower, repayment option and duration of the loan amount. Find out here business hotel-navi how to finance your ideal project without resorting to using conventional banking services.
They don’t need you to give your credit report, property as collateral or guarantee for the loan amount but they may insist you to have a counseling session with their experts who can make you understand whether your business idea is really good or you should take some steps to make it good. The loan amount given to customers is from $500 to One million dollars. Once you repay the loan amount then another loan is also available for you to increase your business if needed.
Major MFI’s institutions in the United States are ACCION U.S.A and gamin America which have their branches in the whole nation. There are many more organizations like the opportunity found in California and CASH (community alliance for self-help) in Seattle.
There are some nonprofit groups which allow individual to donate money to increase funding for micro lending’s. In this a donor can get all the requirements of borrowers and their businesses and then offer loans to them. After the loan amount is repaid the donor receives the amount which can be used by him to reinvest or cash out.
There are many more ways to get some amount of money to start up your own business:
7 (a) Loan:
These loans were introduced in keeping the rising demand of funding for the startups. The lenders are ready to take the risk of funding these start ups with a different set of terms and conditions. The rate of interest and the tenure are decided on the basis of the applicant’s business idea, management team and the market prospects.
These loans are given for the diversification of the business. These are generally offered for a long term and the interest rates offered are greatly dependent on the kind of profile the applicants have.
These are the loans which are offered to the businessmen who are looking for business loans. These personal installment loans were set up with an aim to offer support to the businessmen who were in real need of funds to keep their business running. Learn about many avenues of funding and different approaches you can take to make your concept a reality at this website business services chicago.
In secured loans, the borrowers are required to keep their assets as collateral in order to get loans. These loans are high value loans and hence the lenders never offer them without a security attached to them. This lowers their risk and they readily offer loans at the best interest rates and terms. However, there is an inherent risk for the borrowers as they will lose their assets to the lenders in case they fail to repay their loans completely.
Getting these loans for the business purpose is never easy. You need to really plan your application well to succeed getting these loans. Lenders will never offer great sums on these kind of loans as they will want to mitigate their risk of lending.