“In 1989, I started the National Association of Business Women. We incorporated microfinance and different job training for women. We did a survey, with USAID, that found women lacked training, credit and information.” – Joyce Banda
There is no doubt that women are often left to fend for themselves and their small children, irrespective of whether the children’s father is on the scene or not. I am not sure I understand why; however, the reasons why are not part of this article’s scope. In a nutshell, this article aims to discuss one of the ways women can successfully apply for a microloan to get a small business up and running.
The fact of the matter is that, in our current global uncertain time, it is becoming increasingly difficult for a single family member to earn enough to support his/her family. Therefore, both parents need to engage in income-generation activities, or if the father is no longer on the scene, and he does not pay any child support, the mother will more than likely have to work at more than one job to make ends meet.
Microfinance, Microloans, and car title loans
Before we look at how to finance your small business venture, let’s have a look at what the terms microfinance, microloans, and car title loans Fresno mean:
In a nutshell, microfinance or microcredit is “banking the unbankables, bringing credit, savings and other essential financial services within the reach of… people who are too poor to be served by regular banks… because they are unable to offer sufficient collateral.” In other words, if your credit score, or income, etc. is less than a certain threshold, you will not be able to borrow money from a regular bank.
The next logical step in the microfinance industry is for financiers who fit into this category to offer mini-loans such as car title loans to their clients. In a nutshell, a microloan is a small amount which is designed to help the borrower get their small business up and running.
Car title loan
Furthermore, a car title loan is a micro loan which takes your fully paid up vehicle’s title deed as collateral for the loan. Here are a couple of pointers which will help you understand the ins and outs of a car title loan:
- You will be granted a maximum of 25%-50% of your vehicle’s value.
- These loans usually need to be repaid within 36 months from the date that the loan amount is paid to you.
- The interest rate is very high in relation to conventional loans. Consequently, it is a good idea to make sure that you utilise the loan amount as a source of income generation; otherwise, you run the risk of not being able to repay the loan within the stipulated timeframe.
Therefore, should your small business require a cash injection, and you are unable to get financing from a conventional bank, and you have a fully paid-up vehicle, I believe that it is a good idea for you to apply for a car title loan.