3 Startups Offer New ‘Microloan’ Options for Entrepreneurs With Big Ambitions
Wednesday, August 6, 2014
In the United States, a whopping 543,000 new businesses are launched each month. Sadly, half of all start-ups aren’t able to keep their doors open for more than five years. The failure of many small businesses is due, in large part, to lack of funding.
In the last several years, however, there has been a surge of microfinance institutions popping up across the United States, offering a solution to this problem by issuing microloans.
A microloan is defined as a very small, short-term loan with a low interest rate, usually extended to a start-up company or self-employed person. Typically, these loans do not exceed $35,000.