Microfinance: For when mega-finance is just too much
If you've heard of micro-financing at all, it's probably been primarily in the context of small, low-cost, short-term loans commonly made in third-world countries to the economically disadvantaged, a la Kiva. But Small Business Trends reports that it may not be such a rarity in the realm of the first-world entrepreneur anymore, as traditional lending has dried up and as small business owners have worked assiduously to reduce both costs and needs during the recession.
It's important to recognize the availability of such loans as well as the desirability in the face of more difficult economic times. Not only are the larger, longer-term, more time-consuming traditional business loans becoming harder and harder to come by, but the idea of carrying large amounts of debt is becoming more of an anathema as well. At one time, you were a BSD if you could casually mention you got a couple million in financing lined up; now, you're a guy with a couple million in red ink hanging over his head, and an uncertain marketplace in which to recoup it. Bringing in smaller loan amounts and spending tactically is starting to look like sound business practice.