Securing proper funding is a major barrier for many entrepreneurs starting a small business. While there are numerous financial support options, like obtaining loans from financial institutions, these avenues don’t always yield results. Consequently, entrepreneurs are increasingly turning to alternative investment forms, such as microlending.
Many entrepreneurs believe that microlending is only a funding option for projects in developing countries. However, in 2021 alone, the Small Business Administration Microloan Program issued 4,510 microloans nationwide. Microfinance has been proven to work in the United States as many microlenders provide pro bono consulting and training along with a loan, making microfinancing a great option for entrepreneurs just starting out. Here’s what you need to know about this financing model.
