As a business owner, sometimes you need financing fast. When your important equipment breaks without warning or you need extra inventory for an emergency, you have to get capital quickly. There are many ways to do this, but we are going to talk specifically about microloans and lines of credit. Since they are among the fastest way to get capital for your business.
Microloans and Lines of Credit – Features
In order to get a better idea of what a microloan or line of credit entails, take a look at this table showing the features found in each method. While you read about microloans, please have in mind that not all lenders all equal. Camino Financial is an alternative lender offering microloans with friendlier terms than the detailed in the chart below, fewer requirements and some added benefits you won’t find in other lenders. Keep reading until to end to find out about this option!
Microloans and Lines of Credit – Requirements
Requirements of any loan tend to depend on the lender and the applicant’s negotiations. However, the following table gives a general idea of typical requirements for a microloan or line of credit.
Pros of Microloans and Lines of Credit
Below is a chart showing some of the advantages of microloans and lines of credit:
Cons of Microloans and Lines of Credit
While microloans and lines of credit can be quite beneficial, they each have drawbacks that you should consider:
Best uses for Microloans and Lines of Credit
Microloans and lines of credit are very different, which means they are best used for different things:
Why Camino Financial Microloans Are Your Best Choice
We’ve already talked about the different aspects of microloans and lines of credit. However, there are a lot of ways in which Camino Financial microloans stand out from other fast financing options.
These are the basic features of our microloans:
- Loan amounts ranging from $5,000 to $75,000: you don’t need to request a large amount of capital to be approved.
- Annual interest rate ranging from 19.0% to 34.0%
- Monthly payments over a period ranging from 18 to 24 months
- Single origination fee of 6.99%
Below are just a few of the benefits when you apply for a Camino Financial microloan:
- Camino Financial does not require a minimum credit (FICO) score and applicants without a credit history are eligible to apply for a business loan.
- No collateral is required for a Camino Financial microloan.
- Some loans penalize you for paying off the loan too early. Camino Financial has no early payment penalties, so you can pay off your loans any moment you want.
- If you are approved for a microloan, the loan will be funded within 2-4 business days. This is the fastest funding time for a microloan you will find!
- Our business motto “No Business Left Behind” is more than just a saying. We will help you through every step of the loan application process, we will to match you with the best funding option according to your circumstances, and will continue to work with you long after the loan is funded. We are proud of establishing long-term relationships with our members.
- Our loan specialists are bilingual, so language is not a barrier.
- Once you submit your online application, you’ll know instantly if you prequalify for a microloan. The application process is all online and is super simple.
Although Camino Financial microloans tend to have fewer restrictions than other lenders, there are still a few requirements to be aware of:
- Your business must have been operating for at least 9 months
- Your business must generate at least $30,000 in annual gross sales
- You must be located in the U.S. (except for New Jersey, North Carolina, Hawaii, or Puerto Rico)
- You must provide a Social Security Number or, in its default, an ITIN (Individual Taxpayer Identification Number)
- You have to own at least 50% of the business
We hope this article has enlightened you on the difference between a microloan and a line of credit, and has provided you with the information you need to see for yourself why a microloan from Camino Financial is your best option when you need a small quantity of capital to invest in your business, and you need it as soon as possible. If you are ready to make a difference in your business starting today, simply request a quote for your microloan. We’ll be glad to help!