Micro-Factoring and Microloans

With roughly eighty percent (80%) of startup entrepreneurs experiencing turned down for traditional bank loans, the areas of small business microloans and micro-factoring could not be more important.   

Micro Lending

For a variety of reasons, most banks simply do not want to deal with business loans for less than $250,000 and this is where micro-lending steps in.  Microloans are business loans normally ranging from $1,000 to $50,000 although loans of up to $100,000 can be considered "micro".  According to the U.S. Small Business Administration, the average microloan is about $13,000.

Microloans cannot be used to purchase business real estate but can be used for a variety of other reasons including...

Micro-Factoring

Though most traditional factors require a $25,000 minimum in invoice purchases each month to create a financing arrangement, micro-factors are different.  This group of small business capital providers will often accept as little as $5,000 in invoice financing each month making them a ready option for new  entrepreneurs.  For small startups doing business with other businesses (B2B), micro-factoring is the most readily available method of solving problems associated with cash flow when terms of payment are granted and customers require 30 days or more to pay for goods delivered or services performed.

Find Out More

One of the best ways to further explore this powerful small business finance tool and to see if its right for you and your business is to request our FREE booklet, "When Banks Say NO!...The Small Business Guide to Factoring."  Its FREE, from Access Capital Funding.  Click below to order.