This type of financing has several advantages over others and becomes especially relevant in societies in crisis. Often microcredit is the ideal financing for many people who want to start their own business, but not only.
1. Helps start up small businesses
The most mentioned advantage over microcredit is its impact on the creation of small or micro businesses. This modality allows the financing of ideas that would otherwise hardly be realized. Sometimes buying a tool or renting a space can mean starting a small business. With a very low value, you may be able to start building your business idea.
2. Includes small business tracking
In this type of financing, there is an obligation on the financial institution to advise and monitor the implementation of the business idea. In other words, for those with little financial experience, microcredit will be the best option, as it will have the help of professionals with vast experience.
3. Helps create jobs
Microcredit can be a major job generator. In addition to employing the person who creates his own business, microcredit can help to employ others if the business grows and stays. Thus, microcredit can help the growth of the local economy and completely change the lives of many people.
4. Is affordable financing
Microcredit is much more affordable financing. To get another credit, you need to give the bank several assurances that you will have the capital to settle your debt. In the case of microcredit, the requirements are few, making it accessible to virtually anyone. In addition, the entire loan methodology is simplified for microcredit lending, which greatly encourages less experienced people in the economic field.
5. Can be used for various needs.
As with personal credit, there is no need for justification of the credit application for microcredit either. This way you can use microcredit not only to start a business, but also to acquire some good or small works.
6. It’s essential for micro businesses
As we mentioned above, microcredit is not a type of finance that is just for start-ups, it can also be essential for microenterprises that need investment to grow their business.
7. Has a lower interest rate
As a rule, this type of credit has lower interest rates than other types of loans. That is, in addition to the ease of approval of this credit, it will still have the advantage of having to pay relatively little for it.
If you have a solid business idea and your dream is to implement it, be accompanied by the best experts in the market and use microcredit. At Lighthand Credit we offer the best financing solutions, always tailor made.