Microloans
- FrankN
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- Lexie
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FrankN wrote:
JGibbs wrote: Is Trust Leaf an option? Trust Leaf helps people crowdsource loans through friends and family. It has good reviews, but I can't tell if they're still in operation. I'd be leery of borrowing money from those I know. Bad feelings if it all went south.
I have never felt comfortable doing that. Could destroy relationships forever.
Oh my yes! I make it a policy never to borrow from friends and family. I would rather pay a higher interest rate from a bank than borrow from someone I know. It has a tendency to make for bad feelings if the least little thing went wrong. One of those "been there done that" kind of things.
- FrankN
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JGibbs wrote: Is Trust Leaf an option? Trust Leaf helps people crowdsource loans through friends and family. It has good reviews, but I can't tell if they're still in operation. I'd be leery of borrowing money from those I know. Bad feelings if it all went south.
I have never felt comfortable doing that. Could destroy relationships forever.
- JGibbs
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- FrankN
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Lexie wrote: Yes! Cash advances on credit cards are the pits. Some interest rates are as high as 26%. Aren't there private individuals out there that loan money to small businesses at a decent rate? These are people that are looking to grow their money without playing with stocks and banks.
There absolutely is. Many credit unions will loan to small businesses at a decent rate as well.
- Lexie
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- FrankN
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JGibbs wrote:
Isn't that worse though, since the interest is usually much higher and there's usually no grace period before interest kicks in? I thought a cash advance on a credit card was up there with a payday loan in terms of bad financial decisions.FrankN wrote: Yeah there are many places that will provide you low dollar amount loans. You can also take a cash advance from your credit card, which is essentially the same thing.
Yes I should have clarified. The rates are very high for cash advances. I would not recommend them.
- Joker
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- JGibbs
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Isn't that worse though, since the interest is usually much higher and there's usually no grace period before interest kicks in? I thought a cash advance on a credit card was up there with a payday loan in terms of bad financial decisions.FrankN wrote: Yeah there are many places that will provide you low dollar amount loans. You can also take a cash advance from your credit card, which is essentially the same thing.
- FrankN
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JGibbs wrote:
If the SBA is too strict, you could try getting a line of credit through Kabbage . It's supposed to be quicker than working with the SBA, but you'd need to check the terms to see which is the most favorable. You could also apply for a line of credit through PayPal. I bet the interest is high though.Joker wrote: Ooh, so there are some other companies that will fund microloans besides the SBA.
Yeah there are many places that will provide you low dollar amount loans. You can also take a cash advance from your credit card, which is essentially the same thing.
- JGibbs
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If the SBA is too strict, you could try getting a line of credit through Kabbage . It's supposed to be quicker than working with the SBA, but you'd need to check the terms to see which is the most favorable. You could also apply for a line of credit through PayPal. I bet the interest is high though.Joker wrote: Ooh, so there are some other companies that will fund microloans besides the SBA.
- FrankN
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Lexie wrote: Frankn, I didn't know you could get a loan under $100. However, it's good to know.
That's hilarious Joker. I felt like that every time we have bought a home. I guess the lending companies are covering all bases but "geesh," do they really need all that information plus your husband?
These Micro loans were created for poverty stricken economies to try and help them slowly grow. Its a hybrid of charity and investments.
- Lexie
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That's hilarious Joker. I felt like that every time we have bought a home. I guess the lending companies are covering all bases but "geesh," do they really need all that information plus your husband?
- Joker
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- JGibbs
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Replied by JGibbs on topic Microloans
In addition to what's already been named there's also Prosper and LendingClub. Their rates vary depending on how much is borrowed and the borrowers FICO score. But if you're looking for a small personal loan, reddit has an active community just for this at r/borrowJoker wrote: I was reading about small business loans and if you can't get financed with a regular bank they say "micro-loans" are sometimes a good place to look. Does anyone have any experience with a micro-loan company or trying to get funds from one? I am interested to see if there are some stand-out names in that industry.
I've loaned money through KIVA and reddit and was paid back each time. KIVA isn't an investment platform, so don't expect interest. I've made two loans on reddit and it was a better investment than what stock could offer. However, there's no contract, so it's risky. I mitigated my damages by loaning small amounts that I could afford to lose. It's been a while since I've made a loan there; I need to check it out again soon.