Applying for microloans can be a trial and error process for those who do not know how. This article outlines how to successfully obtain a microloan.
Microloans in the Past
In the past, when microloans were just a new thing, they were not at all popular. Microloans were for the poverty stricken, for people who lack collateral, and for people who have bad credit. Microloans were a master plan to do away with poverty in the world. Once people discovered how beneficial microloans can be to them that’s when everyone started looking for microloans. Microloans are no longer for the less fortunate nowadays; they are for anyone who can qualify. So now, getting a microloan has become very competitive. That’s why, if you really want to get a microloan, you have to be a step ahead in your preparation towards obtaining it. You can use these helpful tips to give you that extra advantage over other microloan applicants so that you can stand a higher chance of getting it.
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Tip #1: Apply for Microloans Early in the Year
You should apply early in the year for a microloan. Most micro-lenders must meet certain quota by the end of the year. This means they need to lend to as many business owners as possible to meet their annual quota. So if you want to be among the people lucky enough to receive a microloan from those particular lenders or that particular lending institution, then you need to apply for the microloans early enough. You need to be among the first people who apply for the microloan; don’t wait until you are among the last batch of people to apply for the microloan. If you do that, chances of you getting the loan are very slim. This is because in the event that all the people who applied for the microloan qualify and get the loan, by the time they are even getting to your application and reading it, their microloan fund for the year will have been exhausted.
Tip #2: Seek Assistance from a Microloan Funding Expert
If you have a history of bad credit, you can be ahead of other applicants in a similar situation if you connect with an expert to assist you in obtaining a microloan with bad credit. Working with an expert (preferably a former small business banker) will give you the head way you need to increase your chances of being approved for a microloan with bad credit. Any expert you connect with should know how to write a business plan, marketing plan, and financial plan. You will need a well thought out and written business plan to present to microloan lenders to get approved for a microloan up to $50k with bad credit. They should also have some experience as a former small business banker or business consultant that is familiar with business lending. Click here to schedule an appointment with a business planning and funding expert to discuss getting a microloan up to $50K.
