2016-11-21 00:00:00Borrowing and LoansEnglishMicroloans can be advantageous to small businesses looking for access to capital quickly. See if your business should consider this type of...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/10/Woman-at-small-business-office-reviews-microloan-on-mobile-phone.jpgMicroloan

Microloan

0 min read

A microloan is a small, short-term loan typically obtained by small business owners who may otherwise fail to qualify for a traditional bank loan. Due to the more relaxed requirements to qualify, microloans are especially appropriate for those individuals with limited resources and little business credit history.

Microloans can be an ideal source of funding for businesses deemed too small to qualify for a traditional bank loan that also don’t want to load up on expensive credit card debt. Some of the benefits include access to capital for those with poor credit histories and the ability to receive funds quickly. Higher interest rates than traditional bank loans and short payback periods can be considered drawbacks.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Microloan Financing Resources for Your Canadian Startup

Microloans are small loans, often less than $10,000, to help small businesses…

Read more

Creative Alternative Funding Sources for Your Small Business

Most small businesses need financing at some point – for startup, to…

Read more

Funding Opportunities for Female Entrepreneurs

The number of women entrepreneurs is growing across Canada, which is good…

Read more