There was a time, not too long ago, generating capital through venture capital funds was the most viable option to take for growing businesses. But, over the last few years more independent business owners have been taking advantage of a stronger financial stratagey in 2012: Microfinancing.
Despite the fact that the volumes change by lender, nearly all Microfinancingloans are under $100,000. Based on a newly released survey in Entrepreneur-Magazine, non bank loan providers such as the SanFrancisco Bay Area’s Opportunity Monetary fund provide financial loans that on average are around $8,000. And, even more shocking is the fact that the same lenders say that the companies they give loans to have a survival rate that is more than twice the nation’s average with a repayment rate about comparable to standard banks.
In part, Microfinancing as a general practice has been increasing as many banks continue to struggling to serve the requirements of small business owners.
Experts in microfinancing believe that businesses who Microfinance do better than business owners who have went the route of traditional banks or charge cards as a result of a wide variety of factors such as more thorough screening. We know Microfinancers such as neebo capital make the extra effort to better know business owners individually, a practice which is not normally employed by traditional banks.
In addition, Microfinancing is often made in a group setting where business owners support one another and are also financially responsible for each others loans.
Moreover, smaller scale financial loans help the entrepreneur or business owner stay on target with their business and not as likely to get caught up in over extending.
For those business owners interested in microfinancingt, visit neebocapital.com and speak with one of our specalists…. we’re business owners too.. we understand cash flow issues, and solutions.