A micro business loan basically means loans for small businesses. Usually, only a small amount is needed to finance this kind of business, so that bank loans are not applicable. Mostly this is used for starting up a business that costs from $2,000 to $30,000 only. If you are a retailer and you have no idea how to get this kind of financing, you have come to the right place. Read on to learn more about how to apply for a micro business loan and see how quick and easy it is.
- Credit check. First, you have to make sure that your loan will be approved. The most efficient way to do this is having a very good credit score. Start reviewing your credit. You have to ensure that you are trustworthy to the lender. The requirements for each lenders are not always the same, but the credit score usually averages at 630.
- Know the amount you need. It is extremely important that you have perceived the amount that you are planning to borrow. This should not be something that you hastily thought about because you feel like it is the right amount. That would be disastrous. You should first create a business plan. Your plan should include your projected financial statements. If you are unsure on how to make it, search the Internet and you will find some templates or formats that would greatly help you in achieving this analysis.
- Complete all required licenses. This is very important, not only for the approval of your loan but for your business to be legit as well. You will be needing to submit copies of your business licenses to your lender so make sure you have processed everything!
- Open a checking account. You should open a checking account for your own business. This would save you a lot of trouble from getting confused with your finances since you have separated all your work-related transactions from your personal ones. This way, monitoring your revenue and loss would be easier.
- Get a lender. Also known as micro-lender, these financiers offer loans for small businesses. Go online and you can find various agents near you that are willing to accommodate applicants such as yourself.
- Double-check Everything. Once you have found your lender, before submitting all required documentation, check all of it first and make sure there are no errors especially in your credit report and business plan.
- Submit all requirements. When you're done checking, you can now submit it to your agent. Make sure you comply to their requests.
- The approval. Wait patiently for the approval of your loan. Once approved, you will receive a check with the exact amount that you borrowed. This is usually payable from one to six years, depending on what you have agreed upon.
It is fairly easy to apply as long as you have done all the preparations properly. The documents are really crucial so make sure all of them are correct. Remember, think wisely before you venture on to something that you are unsure of. Now go out there and make your dream business into life!