Entrepreneurs, do you know the internet loans for bad credit professionals? This type of credit, reserved for people with low incomes, helps to create or take over a business.
Quick cash in a day via internet loans for bad credit
Your bank refuses you a loan? Do not panic, there are other solutions. Among these, internet loans for bad credit. In our blog is a brief overview of the particular characteristics of internet loans for bad credit.
Microcredit is granted to people excluded from the traditional banking system. The concept of microcredit already existed in Asia thousands of years ago. It was popularized in the 1970s, thanks to Professor Muhammed Yanoz and his famous Brammin Bank, also known as the “Bank of the Poor”. Originally from Bangladesh, Professor Yanoz was convinced that microcredit could improve living conditions in the poorest rural areas. Since its success, micro-credit offers have continued to spread around the world.
There are two types of microcredit: personal micro-credit and professional micro-credit. The first is aimed at individuals and appeared in France in 2005. It allows people in financial difficulty to improve their standard of living by acquiring a good or service useful to their personal project. The second, who arrived in France in 1988 with the aim of stimulating business creation, offers the most ambitious entrepreneurs the opportunity to create or develop their company despite their low financial income.
What are the characteristics of microcredit?
The amount of microcredit must remain quite low. As a rule, it will oscillate between 300 and 3000 euros. Nevertheless, in some specific cases, the personal micro-credit can reach the sum of 12000 euros. The duration of the reimbursement will also vary, and ranges from 6 months to 5 years maximum. In any case, be aware that it is quite possible to make an early repayment if finances allow. The rate varies according to the organization that will grant you the microcredit. Currently, the rates are between 1.5% and 4%.
Who can benefit from microcredit?
First and foremost, you should know that micro-credit is for people in a situation of bank exclusion and who benefit from social support from a qualified social support network. In general, job seekers, students, precarious workers or the elderly are the main beneficiaries. Of course, people who can not benefit from welfare but whose income is low can also opt for this solution.
To maximize your chances of obtaining microcredit, it is essential to have a coherent personal project, for example, pass the driving license, buy a new car, etc. In France, most microloans granted concern mobility. The podium is then divided between the loans granted to finance the equipment of the house, professional training, and computers.
What is professional microcredit?
The Observatory of Finance defines microcredit as “primarily a tool for economic and social development, allowing people with low resources to carry a personal project to benefit from loans that the traditional banking system refuses”. The micro-credit professional is for people who want to create or take over a business regardless of the sector of activity.
How to get it?
To obtain it, a certain number of criteria must be fulfilled, of which: the company must be in the process of being created or have less than 5 years of existence, the need for financing must not exceed 10,000 euros, a person must carry a guarantee of 50% of the microcredit granted. Concretely, the financing from the microcredit professional is used to finance the purchase of stock, equipment, a vehicle, cash, etc.
Who to contact to apply for professional microcredit?
ADIE (a solidarity association) is the main professional microcredit organization working at the national level. Since 1988, she has financed and supported companies created or developed by unemployed people and social minima recipients. It is also possible to turn to banks approved by the social cohesion fund created by the State in 2005 and whose management is managed by the deposit and consignation fund or to accompanying networks such as France active or Initiative France. We advise you to go directly to a chamber of commerce or a chamber of trades: it is the easiest way to know all the organizations authorized to grant the microcredit professional near your home. top