A lot of people are interested in benefiting from microloans, but very few know the correct procedure of applying for a microloan. This article will shed more light on this subject. A microloan is a type of loan that was designed mainly for small businesses in impoverished communities. Microloans are meant for those people who have may low income and bad credit. They are also meant for people who meet criteria outlined by the government as “people operating businesses in impoverished communities. These people often don’t qualify to get traditional small business loans so microloans are recommended to them whenever they approach a lender for a funding. There are procedures you must follow to obtain a microloan.
Step 1: Applying for Microloans
The first thing you need to do is to connect with an expert who can help you prepare to meet with a suitable micro-lender who may give you a microloan. Micro-lenders require that you have a full business plan to submit along with your application. Your business plan needs to contain critical financial information about your business. This includes at least 3 years of financial projections. It’s important that you fully understand how the financials work because the micro-lenders will ask you questions about them. The best way to insure that you are fully prepared to meet with a micro-lender and answer their questions is to consult with an expert who has experience in working with them. Think of it like this, let’s say you were sued and had to go to court. If you’re a smart person there’s no way you would stand in front a judge and try to defend yourself without a lawyer. The right thing to do would be to hire a lawyer in this case because the lawyer is the expert. You would do the same thing if you wanted to apply for a microloan. You would consult with an expert that understands what the micro-lender wants.
Want to learn how we help entrepreneurs fund their business? Register for our free webinar! (Scroll down to continue reading this blog).
Step 2: Getting Microloans
Once you connect with an expert and have your business plan written, you are now ready to apply for your microloan. It’s important that you work with the expert on what to say when you meet with the lender. The lender will ask you specific questions about your business and industry to be sure you know what you are doing. They don’t want to lend to people who don’t understand the business they want to start. Therefore it’s important to study and understand your business plan before meeting with the lender. Once you get to the meeting, firmly shake the bankers hand and always speak with confidence. Don’t stumble when answering questions because the lender will feel that you don’t know what you are talking about. After the meeting, (while you are waiting on a decision from the lender), I suggest sending them a thank you card to show them you appreciate their time. It may not get your microloan approved but they may remember you in the future because of your courtesy. Click here to consult with an expert about obtaining a microloan up to $50,000, despite your challenged credit history.
