How can I use a microloan for a startup?
A microloan can be used for any business-related expense or as working capital. You could use the funds to hire staff, buy supplies or equipment, renovate your office, or pay for legal fees. Read through your loan paperwork to see whether there are any parameters for what you can or cannot spend the loan funds on before you sign your loan agreement.
How to apply for a microloan for my startup
If you’re ready to apply for a microloan, review what the lender requires of you. Many online applications for microloans for startups are simple and ask little more than your business details, revenues, and personal information, since you may be required to personally guarantee the loan. Once you submit your application, you might be approved within minutes, unless the lender needs to spend more time reviewing your application.
If you apply for an SBA microloan through a bank or other lender, the process may require more paperwork, such as financial statements. You may have to apply in person rather than online. It’s generally a good idea to check what you’ll need to apply beforehand, gather all the details and paperwork, and then dedicate some time to the process. Otherwise, you risk not being properly prepared and your application being delayed because you’re missing some key piece of information.
Additional resources for startups
If your startup is brand new, you can probably use help. There are free resources like the following you can use to find mentors, get help with creating a business plan, and attend free workshops and training.
Sometimes you need to borrow a large amount of money. Sometimes you need just a little. Finding the right lender for the size of loan you need is important, as is finding one willing to lend to a new startup.
This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.
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