Microloans For Small Businesses
Sometimes a business doesn’t need a large amount of funding. For some small businesses, a six-figure loan is more than necessary. There is simply no point in borrowing more money than necessary, just to end up paying back more in factor rate or interest — That’s where microloans come in.
What Is A Microloan?
A microloan for business is a loan for a smaller amount than is typical for the financial industry. Just like most things that start with the word ‘micro’ it is a specialty. An SBA microloan is denoted as funding that totals $50,000 or less. The average loan amount in this category is just $13,000; this is a notable contrast to the SBA’s average business loan amount in 2015 of $370,000.
This short-term funding for small business may be applicable for a number of reasons. It’s a common choice for very small businesses that have carefully specified their budget and only need a few thousand dollars of capital to actualize their newest or most important project.
Microloans for small business may be needed for a variety of reasons at different times throughout the initial years of a new company. While many banking institutions do not offer to finance in such small dollar amounts, our financing ethos is different.
Why Choose A Small Business Microloan From Fast Capital 360?
At Fast Capital 360, all of our loans, micro or otherwise, are fast and unsecured. We designed our funding process around getting small businesses the cash flow they need, when they need it and without a long, laborious process to get it.
Rather than requiring collateral like property or assets, our loans integrate a factor rate – baked-in interest that doesn’t compound over time. This is the best short-term business loan option available on the market today bar none.
As a member of the Responsible Business Lending Coalition, we’re proud to uphold the tenets of lending fairness and transparency, so you clearly understand the terms and conditions of your loan. We’ve served thousands of business owners with our loan services, and that’s what has led us to be reviewed among the best of the best in our industry.
Business microloans can be used for a variety of funding initiatives including:
- Covering payroll during a slowdown or unforeseen hardship
- Covering Operating expenses during the slow season
- Expanding a business through a physical remodel or a new product launch
- Purchasing more inventory than is currently feasible
- Making repairs to business utilities so that work can continue
- Hiring new staff to expand operations
If your business is searching for the right microloan, but you’re still unsure of whether or not Fast Capital 360 is the right option for you, give one of our business advisors a call to receive personalized insight into your best options for funding.
To learn more about small business microloans from Fast Capital 360, contact us online or give us a call at 1-800-735-6107