How to Secure a Microloan
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June 29, 2022
Did you ever need a small loan for your business that a bank wouldn’t approve? Microloans are available when you need quick cash for various business needs. Learn more about microloans and their benefits by reading this blog.
What are Microloans?
You can obtain microloans through peer-to-peer lending platforms, whereas most borrowers get traditional loans from a bank. You can directly connect with the investors to get your microloan and skip the lengthy process, unlike at banks. Since most banks do not offer loans of less than $5000, microloans are ideal to get small money that can be anything from $100 to $2000.
Benefits of a Microloan
There are multiple benefits of a microloan that can help your business.
- They’re easier to apply for and can be received much quicker than a larger loan from the banks that usually have a lengthy and uncertain process. Multiple documents are required, collateral reviewed, and long waiting times are all part of the process when applying for a loan through a bank.
- Microlenders are usually more welcoming, especially if you don’t have a good credit score. On the other hand, your approval rate highly depends on your credit score when applying for a loan with a bank.
- Another incredible aspect of a microloan is that you can plead your case and improve your chances of getting the money when you really need it. For example, an unfortunate event may have left you in a situation where you need a small loan to keep your business running, which you can explain to the investor.
- Besides, most microlending platforms offer flexible payback options to help you make all the payments on time.
How to Secure a Microloan
Don’t worry too much about your credit score. There are other ways to ensure you are approved for a microloan. First, presenting your lender with a business plan is an excellent way to put things into perspective. Your lender will see how you plan to use your loan and why it is necessary.
Presenting yourself in the most professional way possible is vital when applying for a microloan. Your lender will be able to judge you based on that. A strong and professional applicant can demonstrate how they would repay the loan. You can also provide bank statements, proof of income, and legible references.
Having a co-borrower can also strengthen your application, assuring the lender that more than one person will be responsible for repaying the loan.
How Lendee Can Help
Lendee is a Peer to Peer microlending platform to help business owners looking to borrow quick and easy loans. It’s as simple as borrowing money from a friend, except Lendee provides legal security to make both parties feel safe.
Getting a loan through Lendee is easy. With the click of a button, you get instant access to a network of investors who’ll be willing to lend you money. You enter the amount and indicate how you’d like to pay the loan back. Lendee then matches you with an investor ready to lend you money. What’s incredible is that you get your loan at a competitive rate and have the power to choose your own terms.
Through Lendee, you can decide if you want to repay your loan through a single payment, over installments, or even customize your payments.
Skip the wait at your bank and get your loan through Lendee. Don’t wait for your money and then struggle to pay it back when Lendee can offer you flexibility like no other platform. With just a click, you’ll have access to multiple lenders and various options to choose from.