Best Starter Debt Deal: Microloans
one of my favorite sources of low cost funding for small projects or seemingly larger projects is what's called microfinance loans, sometimes just called microloans. Now you don't hear about them and it's unfortunate but yet they are available in every state in the United States. So loans $500. A lot of big corporations, big banks, they don't want to go through the process of lending you $500. They'll say here's a small business credit card. But here are these other sources that you can borrow money as little as in some cases maybe $200 for a rate lower than small business credit cards. Isn't that worth knowing about? Plus many of these resources across the country also provide free or low cost business planning assistance, coaching, sales coaching, a broad range of services just for you. They want you to succeed. So so often I hear business owners across the country say, you know what nobody cares about me, I'm just the little guy. Well, microfinance organizations across the country d...
o care about you because they only serve businesses like you. They don't want to hear from the big monster company they want you as clients. Gosh, isn't that wonderful? Lower credit scores? So if you've had prior bankruptcy low Fico credit scores blips on paying your own personal bills. This I would say is one of the lowest cost ways to re establish your credit. You take maybe $500 loan, pay it back. What does that do that starts changing your credit history all for a low cost money going into your business. And again, I can't emphasize enough the value of personal coaching services. Where are they? As I said, they are in every state now on this chart, I was not able to put names of resources in every state, but they are in every state. Some big leaders. I think. We had a comment earlier from a woman saying nobody cares about me for women. Well, in Wisconsin, there is the women's business center. Now, maybe you're not located in Wisconsin, but that just gives you an example of the diversity of types of resources out there for you. Accion is a pioneer in microfinance. They're located in new york and boston and texas. Um, you can go online and find out where some of those closest resources are to you at my own website. Start on purpose. We list microfinance resources across the country. You can also turn to S B A dot gov for not an entirely full list, but some of the partner microfinance sites that work very actively with the Small Business administration. So that's S B A dot gov. But I'm saying this should be on your list because it is low cost and it is geared for startups. So even if you don't have customers today, I'm saying microfinance lending resources appreciate that position And we'll help you by providing you the right amount of money to help your business grow it. Maybe through a microfinance organization where you borrow $500 1st You advance a bit, you borrow $3,000 next time you borrow $10,000. Next time I think the average loan at accion is something like $12,000. So don't assume, oh, it's too small for what I need to check it out be that shopper primarily, you will find microfinance organizations that only invest in this state. We're going to be highlighting some other sources of capital. Where if you live in Rhode island, you can go to massachusetts for money in most cases because it's part of a community development initiative where states want small business owners to thrive and employ more people. For the most part, a microfinance organization will only fund businesses within that state, but there's an exception. Accion has a program where they, through their online tools will lend to qualify businesses all across the United States. And there are a couple of others like that. I need fast cash. I guarantee that pretty much anyone in business will get snookered and forget that they have payroll taxes or all of a sudden they find out somebody in their organization has made a big order for something from a vendor. All of a sudden cash is tight. You may only need $1,000 or $2,000. Where do you go, where does everybody reach first? They start with the credit card or they turn for a payday loan that maybe masquerading under a different type of organization, where they say business loans. Right? And online there are a growing number of resources that say you need some business cash. Come here. Okay. Shoppers for cash. Let's size up. If you have that emergency $1000 need where you have to pay somebody fast cash or meet payroll. Where do you turn? Okay let's talk about two types of credit cards first. When you sign up and get your business checking account, there is a very good chance at your bank. They are going to now push a paper in front of you. By the way. Would you like our professional credit card and we can put your logo and your business name on your credit card. Won't that impress your clients? They're going to push that on you or you can use your own personal credit card. What's my recommendation? Black and white. I want you to say no to the professional business card. I'd rather have you used a personal credit card. I don't care if you have to personal credit cards. No to the credit card that has your company logo on it. Why am I so insistent? It's very rare that I am black and white and say no don't go. He said no don't go on the 41 K. And Ira robbing your retirement savings to invest in your business. I'm saying no don't go on the professional business card. Here's why remember a couple of years ago there was the consumer new credit card Protection Act that made it illegal for credit card companies or sponsoring issue or banks to raise your interest rates at any time. For whatever reason, those initiatives do not apply to business credit cards. Why? Because you're more profitable to get you into the business credit card than the personal credit card. So here's what you do. Number one, Keep your get too personal credit cards, one for your business expenses And one for your personal expenses. If you have a business credit card, rip it up, don't use it unless you're paying the bill outright by the end of the month, you could end up paying a whole lot more great shoppers never agreed to pay more than they have to or ever want to.