{"id":165614,"date":"2019-08-20T14:00:06","date_gmt":"2019-08-20T14:00:06","guid":{"rendered":"http:\/\/www.georgianewsdesk.com\/news\/story\/165614\/can-micro-loans-help-solve-the-cash-flow-problems-of-small-businesses.html"},"modified":"2019-08-20T14:00:06","modified_gmt":"2019-08-20T14:00:06","slug":"can-micro-loans-help-solve-the-cash-flow-problems-of-small-businesses","status":"publish","type":"post","link":"http:\/\/www.honolulunewsnow.com\/news\/story\/165614\/can-micro-loans-help-solve-the-cash-flow-problems-of-small-businesses.html","title":{"rendered":"Can Micro Loans help solve the cash flow problems of small businesses?"},"content":{"rendered":"<p style=\"text-align: justify\"><span>A microloan is a small term loan that ranges between $5,000 and $50,000 and can be used by a small business in its early stages to pay for inventory, machines, office and business supplies and equipment, working capital.&nbsp;<\/span><\/p>\n<p style=\"text-align: justify\"><span>In 2009, the SBA started a microloan program under President Barack Obama&rsquo;s administration, enabling small businesses to get as much as $50,000 in loan. Over the years, the program has provided tens of thousands of loans to different small business owners to help them start a new business or expand an existing one.<\/span><\/p>\n<p style=\"text-align: justify\"><strong>Why Businesses need micro loans<\/strong><\/p>\n<p style=\"text-align: justify\"><span>Small business owners have been turned down by banks when applying for a traditional loan for different reasons and ultimately look for ways on <\/span><a rel=\"nofollow\" href=\"https:\/\/fundbox.com\/micro-loans\/\"><span>how micro loans work<\/span><\/a><span>. Many of the factors leading to being turned down by banks double as the reasons for going for micro loans. Some of these reasons are briefly highlighted as follows:<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><span>Not enough collateral<\/span><\/li>\n<li><span>Inadequate cash flow<\/span><\/li>\n<li><span>Credit history or credit score<\/span><\/li>\n<li><span>Small loan amounts<\/span><\/li>\n<li><span>Greater risks for banks<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span><br \/><strong>Factors considered by lenders before providing a microloan<\/strong><\/span><\/p>\n<p style=\"text-align: justify\"><span>Lending institutions take some factors into consideration before providing borrowers micro loans. Some of these factors include&nbsp;<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><span>How long the business has been in operation<\/span><\/li>\n<li><span>The amount requested<\/span><\/li>\n<li><span>The location of the business<\/span><\/li>\n<li><span>The financial track record of the borrower<\/span><\/li>\n<li><span>The estimated likelihood of the business repaying the loan within the given time frame<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span><br \/><strong>Pros of Micro Loans<\/strong><\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><span>A microloan is a good option for small businesses that do not need a large amount of money<\/span><\/li>\n<li><span>The requirements for a microloan provided by a lender are more flexible than those of a proper bank.<\/span><\/li>\n<li><span>Lenders sometimes offer technical support, guidance through the loan process.<\/span><\/li>\n<li><span>The interest rate of a microloan is less than that of a credit card<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span><br \/><strong>Cons of Micro Loans<\/strong><\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><span>The loan amount may be limited as lenders depend on government guarantees, donations, endowments or contributions.<\/span><\/li>\n<li><span>Qualifying for a microloan varies from lender to lender and their requirements may vary.<\/span><\/li>\n<li><span>The annual interest rates for a microloan are usually higher when compared to the annual interest rates for a traditional loan or an SBA loan.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span><br \/>There are several other financing options available to small business owners who do not find micro loans suitable.<\/span><\/p>\n<p class=\"caps\"><span style='font-size:18px !important'>Media Contact<\/span><br \/><strong>Company Name:<\/strong> <a rel=\"nofollow\" href=\"http:\/\/www.abnewswire.com\/companyname\/fdbox.com_48198.html\">Funding Box Company<\/a><br \/><strong>Contact Person:<\/strong> Viola D. Hayes<br \/><strong>Email:<\/strong> <a rel=\"nofollow\" href=\"http:\/\/www.abnewswire.com\/email_contact_us.php?pr=can-micro-loans-help-solve-the-cash-flow-problems-of-small-businesses\">Send Email<\/a><br \/><strong>Address:<\/strong>4450 Elmwood Avenue   <br \/><strong>City:<\/strong> Philadelphia<br \/><strong>State:<\/strong> PA <br \/><strong>Country:<\/strong> United States<br \/><strong>Website:<\/strong> <a rel=\"nofollow\" href=\"http:\/\/fdbox.com\" target=\"_blank\">fdbox.com<\/a><\/p>\n<p><img loading=\"lazy\" src=\"http:\/\/www.abnewswire.com\/press_stat.php?pr=can-micro-loans-help-solve-the-cash-flow-problems-of-small-businesses\" alt=\"\" width=\"1px\" height=\"1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A microloan is a small term loan that ranges between $5,000 and $50,000 and can be used by a small business in its early stages to pay for inventory, machines,<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts\/165614"}],"collection":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/comments?post=165614"}],"version-history":[{"count":0,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/posts\/165614\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/media?parent=165614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/categories?post=165614"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.honolulunewsnow.com\/news\/wp-json\/wp\/v2\/tags?post=165614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}