Rex Winter

SCORE, in collaboration with SCORE Business Ondek, has recently published some tips on microfinance loans. The main points of that article are as follows.

Owners of small businesses face many challenges when applying for a loan, but sometimes, the biggest challenge is their own business. If you wait until you are in a hurry to find a lender, you have a very long wait. The best time to borrow is when you have a strategic plan for the money and you are not in critical need. Taking care of your finances will help you to reduce the stress of the loan process, increase your chances of success, and ensure that you can repay the loan easily.

While it may be difficult to predict every financial need in the next 12 or 24 months, it will generally give you a clear idea of ​​what you need to take an active approach to business planning. For example, do you want to buy new equipment, hire more staff, do pillar work, or expand your business? All of these plans can be made easier by borrowing capital. Once you know the purpose of the loan, you can consider how much money you need and what loan terms are best for you.