Robert Jain: What Are Microloans, And Why Do They Matter?

By Jason McDonald


According to the likes of Robert Jain, a microloan is a small amount of money that is provided to a new business or establishment. If you're new to the small business ownership game, chances are that you'll be recommended this type of loan. It's easy to see why, as you'll come to realize. For those that are curious about microloans and the benefits they provide, the following information will prove to be useful.

Even before discussing the benefits of a microloan, however, you have to be approved just like you would for any other type of loan. There are different factors that play into this, too. They include, but aren't limited to, your business plan, credit score, and experience in the workplace. When these are all factored in, your likelihood of obtaining a microloan will either increase or decrease. For those that are approved, though, the advantages of such a loan are undeniable.

One of the numerous benefits of microloans, as supported by names such as Bob Jain, is that they keep you on track. When a lender provides you with the money you need, it will be used only for its given purpose. You won't be able to use it for anything else and while this may seem restrictive, it's beneficial in the sense that it keeps your finances in line. You won't have to worry about making unwise decisions with your money.

The number of businesses that microloans apply to can't be ignored either. It doesn't matter if you're trying to open a restaurant, start a gym, or even create your own local grocery store; this type of loan will most likely to apply you. Of course, you have to ensure that the requirements detailed earlier are accounted for. If this proves to be the case, no matter what business you're interested in starting, this loan will help you.

Lastly, if you think that you have to handle microloans by yourself, you don't have to. As a matter of fact, you will most likely have the assistance of a microlender ushering you along throughout this process. What this means is that no matter what you're trying to obtain money for, from a business standpoint, the aforementioned process doesn't have to be done alone. This should offer comfort to aspiring business owners of all types.




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