How To Finance Your New Small or Home Business
Microloans - A Business Financing Option For Small Loans
Microloans Are A Financing Option For Small Business Loans
Okay, if you were blown away by the thought of taking on venture capitalists for your startup home business, and feel as though you may need something a bit simpler and more readily accessible, we  have just the vehicle for you: Microloans.
Microloans are just as the name implies, very small loans, which can be just the ticket for a new business that has no capital, no ability to qualify in the traditional sense, and does not need huge amounts of money to get the ball rolling.
Microloans as distributed through the SBA range from $500 to a high of $35,000. The average loan size is $10,500.
These loans will carry larger interest charges, usually in the double digits. The reason for this is that these are fairly risky loans, and most of the risk is borne by the lender.
 Microloans got a great deal of publicity in 2006 when Professor Muhammad Yunus, a Fulbright Scholar, and his organization, Grameen Bank, won the Nobel Peace Prize for their work in extending working capital to the poor of Bangladesh in the form of microloans.
In North America microloans are synonymous with peer to peer lending, at least in practice.
This is the Wild West on the Web at its best, as these loans basically require someone willing to lend, and someone needing a microloan, and you're in business.
There are many firms providing these services now, and they are projecting to do business in the amount of $5.8 billion on peer to peer loans by 2010.
If you think this might be the type of financing that best suits your business, search either for "SBA microloans," or "peer to peer lending" and you'll find many interesting resources.
What's Next
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Part 14:
 Partners - A Source of Help And Business Financing - Taking On Business Partners Is A Way To Get Financing, Share The Workload And Responsibly. But There Drawbacks To Taking On Partners.
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 Venture Capital - Starting Small and Going Big - Venture Capital Is A Funding Option For People That Plan To Take A Business To Large Scale Operation. Venture Capital Firms Look For Huge Potential And ROI.
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