“Banks can at times provide better pricing than alternative lenders, but small businesses often need funding immediately as opportunities present themselves and they are willing to pay a premium for speed and flexibility,” he said,. There are some factors to consider before choosing a legal entity for your micro cash loan business and they include; limitation of personal liability, ease of transferability and investor’s expectations. 100% of your loan … Although such policies police fraudsters and make it difficult for them to operate, they could sometimes be a wall of hindrance to smooth business operators and should be paid attention to. Kiva is the world's first online lending platform connecting online lenders to entrepreneurs across the globe. One of the major differences between a micro cash loan business and other financial institutions is that while most banks have a limit to the amount they can charge as interest, the Usury Act Exempts the micro cash loan business from having a limit on its interest rates. Some of the financing options you can explore when seeking for start-up capital for your micro cash loan business include; In as much as a lot of the work of a micro cash loan business can be done digitally, a physical space is needed as in any other business to meet with clients. He simply applies for a loan like every other person, to pay interest on the principal. Of course having a bankable business plan will help secure investments from banks and your friends. Getting into this business will require a large amount of money and except one is already very wealthy, one would have to solicit funds from friends, family, colleagues and investors to be able to float such an enterprise. As SMEs are the lifeblood of any economy, it’s important that these new financing players succeed and meet the needs of this market.”. This will help develop a particular type of mindset in the customers, making them feel like there is more to your business than just the loan services. Exciting promotional packages and give away to loyal customers may also serve as distinct practice for your own business. The difference between micro lenders and banks is that banks have a ceiling on the amount of interest they can charge, which is stipulated in the Usury Act. You would have to prove yourself again and again before pulling in the right kind of investors to give you the much needed liquid cash or working capital. As the backbone of our economy, South African businesses deserve only the best finance options; which these business lenders are ready to provide. Small Loans | Little Loans From Wonga What are small loans? It is for those who have been in the financial business for a while and have come to understand the ropes, language and system of the entire business. According to Johan Bosini, a partner at Quona Capital, South African banks have historically focused on consumers rather than small businesses as businesses are less homogenous and therefore more complicated to service. Whatever the case may be, the name of your micro cash loan business is part of the factors to consider. Is Professional Certification Needed to Start a Micro Cash Loan Business in South Africa? You may need to consult an insurance broker to find out which ones are best for your business. Small Enterprise Finance Agency (SEFA) Small Enterprise Finance Agency was established in 2012 … Current small business loan interest rates can be helpful to any kind of business. This alone can stand as a marketing venue to those who may just be passing by and chose to stop in for a loan. Most of these financial institutions have been in the field for years and have fine-tuned their service delivery to excellence. You may want to think of certain things when coming up with a catchy name. For now, the market is really stable due to these reformations and regulations so a future crisis of the industry is not likely. However location does not affect the competitiveness of the business as most loans can be accessed through online and digital platforms. Seedstars Africa is a member of Seedstars Group, a Swiss-based venture builder … Support women, entrepreneurs, students and refugees around the world with as little as $25 on Kiva. These are some of the key factors that you should consider before choosing a location for your micro cash loan business; You will definitely need computers, internet facility, telephone, fax machine and office furniture such as chairs, tables and shelves; and some of these items can be gotten fairly used. Solomon O’chucks is a Researcher, Prolific Writer and a UNICEF trained & certified Facilitator and Counselor, A Graduate of Morris Cerullor School of Ministry and He Holds a Degree in Personal Development & Science of Success from IIGL Asheville, NC, USA. This option is well advised if you choose to go public with your company someday. With the state of the economy experienced in South Africa, people are looking for alternative means of getting loans. Monitor your repayments on your My RainFin Dashboard. Small business loans give entrepreneurs to access capital to fund gaps in cash flow and to grow their business. Can use to market your micro cash loan business can choose to operate in the micro cash loan Industry future... Business, one threat you will need fund fits the best Gifts for Hair Salon Opening form economic... Heart of picking a name for your business will do well as little as $ 25 kiva! 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