Micro Loans and Microfinancing for Start-ups

One opportunity for small businesses to obtain money is through a micro loan. Micro loans can provide start-ups with needed capital, and they can also be used by existing businesses to grow operations. Micro loans can sometimes provide solutions for entrepreneurs with poor credit, those without collateral and people who don't have a stable income or are unemployed.

Microfinancing can be easier to obtain than the traditional bank loan and can be used for a variety of purposes. However, borrowers may be required to go through business management training in order to qualify. If your business provides employment for others and/or improves the quality of life for those in low-income areas, you may also have a better chance of getting a micro loan.

The Small Business Administration (SBA) is a government organization helps small businesses unable to get loans through normal lending channels. (including special interest loans, micro-loans and secondary market programs) Business financing information. To find a non-profit lender in your area, go to www.microenterpriseworks.org.

If you are a start-up business, you can apply for unsecured start-up loans to $150K online with America One Unsecured. Accion specializes in microfinance within the USA.

Tip: Put together a business plan to make it easier to get financing. Microsoft also has a free letter you can download from their website called "Bank Loan Request for Small Business".