Loans for the modern business
Financing a small business expansion or startup has never been more accessible. With options ranging from peer lenders, to microloans, to SBA-backed institutional financing. There’s a solution for every business to get the funding they need, when they need it most.
10 Financing Options for Small Businesses
Whether starting a new business, financing inventory expansion, or growing into a new market, there are an increasingly large number of funding options to fit the specific demands of your business. Learn More
For those in communities with limited access to traditional business credit, or for those whose requirements or qualifications aren’t suited to a large bank loan, microloans provide a much needed alternative. Learn More
Microlending reflects the increasing growth of the peer-based economy that helps entrepreneurs gain access to capital.
Microloans are small loans issued by individuals instead of traditional lenders such as banks. Lenders can contribute to a single loan or spread out their contribution to cover a portion of several loans.
Lenders can extend a loan to borrowers who either have poor credit history with traditional sources, or borrowers who do not have access to traditional financing due to their geographic location.
Microloans are used to help borrowers within economically underdeveloped communities who may not have access to traditional financing, but similarly to other forms of small short term loans, these loans can carry a higher interest rate.
Multiple lenders can fund either a single microloan or portfolio of microloans in order to minimize the financial impact and diversify the level of risk in the event of default. Once a loan has matured, lenders get interest on their loan and repayment of the principal. Since the risk of default is imminent, the high interest rates make microlending an intriguing risk for some investors.
Explore Financing Options for Small Businesses to get a better understanding of both traditional and alternative financing options available to startups.
In most cases, SBA guaranteed loans come with basic finance management training offered by the lender that not only helps hone your entrepreneurial skills but also boosts your qualifications for more advances in future. SBA loans are great for a young and ambitious entrepreneur unwilling to tie up their future business profitability to co-sharing in the name of angelic investors.