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Micro Loans (up to 50k)
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Posted On: Monday December 29th, 2003 at 12:00am EST
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CAPSULE
Common form of start-up capital.
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Micro loans are generally for start-up businesses or for a company who has annual revenues less than $100,000. Micro loans may be processed by financial institutions and may not require a government guaranty, unless risk factors need to be mitigated.
A micro loan typically does not exceed $50,000 in financing. Micro loans are frequently used for working capital, inventory and equipment. The loan maturity date depends on whether it is for short or long term purposes. It is considered short-term capital if due within one year or long-term capital if due over one year.
Repayment terms:
Terms vary from one year to three to five years, depending on the purpose and terms of each financial institution.
Collateral:
Collateral is generally not required unless credit parameters are not met.
Financial statements required:
Certified business and personal tax returns for the past three years, personal statement of owner and other supplemental information as requested. |
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