Microenterprise loan program for businesses
Starting a business can be an exciting time, but it can also come with countless questions and concerns from prospective business owners. From how to get started with a business plan and securing any necessary business space to consulting a legal professional and learning how to keep accounting books, creating a new business is much more than simply having a great idea as a foundation. One of the greatest concerns for most prospective business owners is the ability to find affordable financing to cover the costs associated with start-up activities. When personal investment or funding from friends, family or business investors seems far removed from reality, business owners can turn to the microenterprise loan program for start-up assistance.
The microenterprise loan program offers funding options for both prospective business owners who have not yet started their business as well as businesses that have been in operation for no more than two years. This program has a wide range of benefits to small businesses, most notably the availability of business capital for those who are unable to obtain it through more conventional financing outlets. Both owner-operated companies and those that are conducted from the owner’s home can be funded through the program as well.
Business owners utilizing the microenterprise loan program at National Australia Bank are issued business financing through a credit card that offers a fixed interest rate. For those who secure financing prior to the end of March of 2015, the interest rate is set at 5.99%, while those who apply and are approved after that date will receive a 9.99% rate. Repayment is based on financing approval date as well, with the former required to repay 3% of the credit limit and the latter required to repay 3.25% of the credit limit, both on a monthly basis. Repayment can be extended for up to three years.
To be eligible for the microenterprise loan program, individuals must have no bankruptcy filing in the last seven years, be willing to work with a business mentor for up to 12 months and have consistent repayment history of other debt obligations for at least the last three months. In addition, business owners must be willing and able to provide business financials and a sound business plan in order to qualify. The microenterprise loan program offers access to start-up funding for business owners who are unable to obtain favourable financing from traditional banking institutions due to lack of track record in business or long-standing, perfect credit history.