Microloans and Micro-Factoring

At Chicago Business Capital, LLC, we have broad expertise in Microloans and Micro-Factoring for our smaller, start up clients. And, with roughly eighty percent (80%) of startup entrepreneurs experiencing turned downs for traditional bank loans, the areas of small business microloans and micro-factoring could not be more important.

Micro-Lending

Most banks and traditional business lenders simply do not want to deal with business loans of less than $250,000 and this is where micro-lending steps in. Microloans are business loans for small, early-stage businesses which normally range from as low as $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...

Working Capital
Inventory & Supplies
Furniture & Fixtures
Machinery & Equipment

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 creative small business capital providers will often accept as little as $5,000 in invoice financing each month making them a ready option for new, early-stage 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 customers require 30 days or more to pay for goods or services.

Find Out More

One of the best ways to further explore micro finance 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 Chicago Business Capital, LLC. (click here to order)