The 5 Top Micro Lenders Serving Small Businesses
As a small business, you may be looking for the best micro lending providers to help fund your operations. This can be a difficult task, as there are many providers to choose from.
In this article, we’ll take a look at five of the top micro lenders serving small businesses. We’ll discuss what each lender has to offer, as well as their pros and cons. So whether you’re in need of financing for your startup or just want to explore your options, read on for information on some of the best micro lenders around.
Micro Lending Explained
Microlending is a loan given to micro-entrepreneurs with limited access to credit. This alternative form of lending helps people who are trying to improve their financial situation by starting small businesses. They often have no collateral or have low credit scores, which limits their access to more traditional loans for capital or operating expenses necessary for a business.
Microlenders can provide direct support through micro-credit loans, micro-savings services, and micro-enterprise training programs.
Micro Lending Benefits
What makes micro lenders attractive is that they exist to help those who need immediate funding for any purpose — especially those who require amounts that are smaller than what one would typically seek from a traditional lender. The benefits of micro lending include:
- Helping micro-entrepreneurs achieve sustainable businesses
- Reducing poverty
- Providing financial education
If you are looking for micro lenders who might be able to support your venture, here are the top five micro lending providers you should consider first.
5 Recommended Micro Lenders for Small Businesses
Here are five top micro lenders in the U.S.:
1. LendThrive
LendThrive offers fast funding business loans of between $25,000 to $150,000 dollars to small to medium entrepreneurs whose businesses are at least two years old. Our fixed rate business loans can be used to expand a business, hire more staff, pay bills, stock inventory, purchase new equipment, and more.
What makes us more special to those looking for micro loans is that you can pay back your loan at any time with no additional charge for early payment. To qualify for a loan with LendThrive, the business must be operating profitably and have a minimum credit score of 675 and sales of at least $10,000 monthly. Loan terms range from 15% to 30% and term payments can go from one year to five years. Take a look at LendThrive’s small business loan calculator to calculate your estimated monthly payments.
2. Accion
Accion Opportunity Fund is a micro lending and financial support organization that caters to underserved entrepreneurs — low-income business owners, women, and entrepreneurs of color. Loan amounts range from $5,000 to $100,000, with repayment structures customized to your business and with no prepayment penalties. You can also apply for a loan online without affecting your credit score. Accion supports ITIN-only borrowers and accommodates inquiries in English and Spanish.
3. Kiva
Kiva is a 501(c)3 nonprofit organization that helps underserved communities obtain loans for any purpose, such as starting a business, paying for tuition, investing in equipment, funding emergency care, and more. Borrowers can apply for as little as $25 and the amount is raised through crowdfunding, where lenders finance the loan in increments of $25 or more. When the borrower pays back what they owe, lenders can then withdraw the money, donate it, or use it to fund new loans. Kiva crowdfunds loans in over 80 countries.
4. National Foundation for Credit Counseling (NFCC)
The NFCC caters to people looking for immediate relief from debt, student loan borrowers, military and veteran borrowers, and small business owners. They also offer emergency credit card help and counseling for home ownership, bankruptcy, reverse mortgage, and foreclosure prevention. The organization connects borrowers with NFCC member agencies to evaluate their financial standing and engage in targeted financial education sessions, with the goal to help borrowers get out of debt in 24 to 60 months.
5. LiftFund
LiftFund provides a variety of funding options for startup and established small business owners through small business loans, SBA 504 loans, SBA 7a loans, and recovery funding. The money can be used for any purpose, including purchasing equipment, stocking supplies, and buying equipment and vehicles. To be eligible for a loan, you must be at least 21 years old, have a social security or ITIN number and not be active in any bankruptcy proceedings or involved in adult entertainment.
Gain Financial Stability Through LendThrive
LendThrive is here for you when you need immediate assistance to finance your business’ growth or to pay off operating expenses and purchases. Loan approvals take as fast as 15 minutes and you can get the money you need in as little as 24 hours.
