18 Apr Microlending: Is That Like a Merchant Cash Advance?
And, while that may be true, you may not realize that small businesses in the U.S. and Canada can qualify for something very similar. It’s called a merchant cash advance.
Essentially, microloans are known for two purposes.
1. Helping the Poor – Microloans help the poor in third world countries start small businesses by way of private investors who pledge a certain amount of money to loan out to a deserving person operating a business in that country. Companies like Kiva administer microlending for these humanitarian purposes.
2. Helping Businesses with Bad Credit – Microloans are offered to business owners in developed countries who may have bad credit and cannot obtain credit from banks. Companies like Global Business Lending fund small businesses based on their business model and performance, not their credit.
Esther Afua Ocloo, born on April 18, 1919, was a pioneer in microlending and was featured on a Google “doodle” today, as this would have been her 98th birthday.
She was one of the founders of Women’s World Banking in 1976, with Michaela Walsh and Ela Bhatt, and served as its first chair of trustees. Women’s World Banking is a non-profit organization that provides support and information to a global network of 40 independent microfinance institutions (MFIs) and banks that offer credit and other financial services to low-income entrepreneurs in the developing world. The WWB network serves 24 million micro-entrepreneurs in 28 countries worldwide, of which 80 percent are women.
In 1990, Ocloo received the African Prize for Leadership for her achievements.
Ocloo actually founded her first company as a teenager in the 1930s with less than a dollar to her name. She sold marmalade on the streets of Accra, the nation’s capital. It was that humble start that would lead her to empower millions of other women to succeed in business.
Today, Global Business Lending honors the work started by women like Esther Afua Ocloo by offering loans ranging from $2,000 to $500,000 to small businesses, regardless of their credit or short time in business.
If you would like to be pre-approved for a microloan, fill out a pre-approval form so we can begin the process of funding you in 72 hours.