Top 4 Ways To Leverage Small Business Micro Loans

When it comes to finding ways to start a new business, micro loans can mean the difference between failure and success. Micro loans are just that. Small loans $35,000 or under that don’t need a lot of vetting in order to pass muster. Many small businesses don’t need a lot of start-up capital as there may not be a lot of equipment or production stock that has to be purchased, which means the loan may only be needed to establish a store front or convert a home based business into a “real” small business. Leveraging micro loans into a successful business will depend on just how you need to apply it.

Here’s a few ways to leverage a small business micro loan to improve your business:

Buy essential equipment or upgrade outdated equipment to help your business grow. For instance, if you’re doing thermal and screen printed t-shirts, upgrading to new, faster equipment can help you improve production

Utilize or improve marketing techniques to penetrate deeper into existing markets and reach out for new ones. If you do t-shirts, expanding from local markets to a national, internet based market can bring in all sorts of new sales

Purchase needed production materials to meet order needs. For example, to meet orders, purchase t-shirts and materials to take care of the order, using profits to either pay on the loan or to expand.

Use funds to create a place for a new employee. Added help can pay off in marketing, production and in infrastructure as each position plays an important part of growing any business Keep in mind micro loans aren’t huge, but do have rather long payoffs. Up to 6 years to pay off up to $35,000 means you can continue to leverage the profits for a while. But being able to use these micro loans to reach new levels of productivity or reach out with new marketing strategies that pay off is well worth the investment in time and effort we make as small business owners.

When starting a new business, being able to borrow the funds for the initial investment can make the business actually happen. Too many potential small businesses never get started because the money isn’t available directly from banks, relatives or even investors, but a small business micro loan can give you the leverage you need to make your dream business come to life.
Taken from(http://www.freearticlesinc.com/view_article-id-37762-at-Top-4-Ways-To-Leverage-Small-Business-Micro-Loans.html)