Everything You Need to Know About Micro Business Loans

micro business loans

Self-employed and on the hunt for short-term finance? With so many loan options out there, it’s hard to know what’s right for you. Although it may seem like a daunting and complicated task, micro business loans could be exactly what you need to get your start-up or small business off the ground!

Popularised in the US, micro enterprise loans offer small, short-term loan amounts to help you secure whatever equipment or working capital you may need to grow your business. At Nifty, we offer self-employed applicants personal loans between $300 to $5,000. Best of all, since we’re a 100% online lender you could apply for a personal loan anywhere in Australia – whenever you like! All you need is a device and a good internet connection to get started.

Above all, we keep our application process simple. So, you will not need to provide any unnecessary details. If you wanted to, you could even use your smartphone to apply and complete your application in just a few short minutes. Since it’s free to apply, why not give us a go today?

What Are Micro Business Loans?

In a nutshell, micro business loans are very small, short-term loans for small businesses, self-employed professionals, or new startups. They usually range in size from $1,000 to $50,000 and are more commonly referred to just as ‘short-term business loans’ by Australian lenders. The term ‘micro business loans’ is used more frequently in America, so if you’re unfamiliar with the concept of geography may be to blame.

Ultimately, there’s no real difference between the purpose of a short-term business loan or a micro business loan. It really just comes down to individual lenders and their specifications.

What Can You Use Them For?

The practice of micro money lending is sometimes used by organisations to give very small loans to businesses in need. Programs such as LaunchME allow struggling Australians to gain access to funding and are usually only applicable to start-ups and entrepreneurs. Consequently, many lenders provide options such as micro business loans to assist a wider range of businesses in their endeavours.

In any case, micro business loans are typically used for the purpose of working capital or to purchase supplies, inventory, equipment, or machinery. For example, maybe you’re taking on a new project and you need to hire some new staff, or perhaps you need a hand with this months inventory bill. Whatever you’re looking at, micro business loans could get you the funding you need, quickly.

When Is a Micro Business Loan the Right Option?

At this point, you may be wondering just what your options are when it comes to short-term business finance and whether a micro business loan is right for you. Ultimately, it comes down to how much you need to borrow and how soon.

Your first instinct may be to approach a traditional bank and with good reason. Bank loans can be a great choice for many small businesses. Yet the application and approval process can also be more drawn out, with stricter eligibility requirements.

True to their name, micro loans are only very small and as a result, can be more suitable if you need quick cash for small-scale business purposes. In considering whether micro business loans are right for you, ask yourself the following:

  • How much do you want to borrow?
  • What do you need the money for?
  • How soon do you need it?
  • Are you capable of making repayments?
  • How could a micro business loan affect your credit rating?

Why Does Business Lenders Check Your Credit History?

Typically, quality lenders will conduct credit score checks as a part of a commitment to responsible lending. Concerned this could mean you will not be approved for a micro business loan? Depending on which lender you work with, bad credit may not be the whole story. Some lenders don’t base an entire assessment on the outcome of a credit score check. Rather, they can take a look at other factors such as your regular income and employment status. So, there is no reason for you to let bad credit stand in your way when looking for micro business loans.

Micro Loans for Startup Businesses with Bad Credit

If you’re self-employed and trying to start up a new business, you can find lenders that look at more than just your credit score. Some lenders can take a fresh approach to bad credit because they can understand that people and circumstances change over time. As a result, they do not base their application assessment just off your credit score.

Poor credit can have an impact for up to 7 years and quality lenders know a lot can happen in that amount of time! So, if they can see that you have made a considerable effort to rectify your credit situation, you might be eligible for a micro business loans.

Micro Business Loans

How much could I borrow?Applicants can typically apply for micro business loans between $300 – $5,000, as long as their income is paid into a personal account.
When would I receive my funds?If your application is approved, you will usually receive a contract to sign. Depending on the lender, the funds could be distributed by the next business day after they receive your signed contract.
How long would I have to pay it back?You could have up to 24 months to repay your loan, depending on the lender and loan request.

That’s the low-down on micro business loans and what to expect from micro business loan lenders, so let’s take a look at personal loans.

Why Choose Nifty for Personal Loans?

With so many lenders out there, why should you choose Nifty? Well, if you’re not in the market for a micro business loan, Nifty could still offer you short-term funding. Essentially, Nifty can provide personal loans between $300 to $5,000 to help with a range of situations. Our dedication to 100% transparency also means we will never sting you with any unwanted fees and instead endeavour to help you find the right solution for your situation.

When we assess our loan applications, we adhere to responsible lending practices. At the end of the day, we don’t want to approve an applicant who cannot afford their repayments. That’s why every application we receive is assessed by a member of our lending team to ensure you are matched to the appropriate loan product. So, while we can’t guarantee approval – we can guarantee a fair assessment.

Eligibility for Personal Loans

To be eligible for a personal loan, you must be able to answer yes to the following:

  • Are you an Australian citizen or permanent resident?
  • Are you aged 18 or older?
  • Have you received a regular income for the last 90 days into your own personal bank account?
  • Do you have an active email address and mobile phone number?

If you ticked all the boxes, then you could apply today!

Required Documentation

If you meet all of the eligibility requirements, there are just a few documents you will need to provide with your application to ensure we can conduct a smooth assessment:

Personal details (e.g. online banking and employment info);
The purpose for applying for the loan;
Your myGov details (if you are receiving Centrelink payments);
Your employer’s contact details.

Why We Need Your Banking Details

A lot of our applicants ask us why we need their online banking details. It’s for convenience! Our team uses your online banking details so we can access read-only copies of your bank statements. These bank statements enable us to get a realistic idea of your spending habits, regular deposits and payments as well as your income.

If you’ve got a poor credit score then this could work in your favour since Nifty prefers to look at the whole picture, not just your credit score.

Want to Apply Now?

Ready to apply online today? With Nifty, it’s easy to get started – just follow these 4 simple steps.

Step 1: Application

Scroll up and use our loan calculator to enter your preferred loan amount and repayment period. When you’re satisfied, simply hit the ‘apply now’ button and you will then be directed to our 100% online application form. This form could take you just a few minutes to complete, should you choose to proceed with your application.

Step 2: Assessment

Once you’ve submitted your application form simply sit back and relax as our team starts the assessment process. If you have submitted your application during regular AEST business hours, you could even have an outcome within as little as 60 minutes.

Step 3: Loan Contract

Should your application be successful, a member of our team will be in touch. We will send over a loan contract for you to read and sign. We recommend you read through our agreement carefully and make yourself aware of any fees or charges you could incur for late or failed payment. When you’re happy, simply sign and send it back to us.

Step 4: Disbursement of Funds

As soon as we receive your signed loan agreement, our team will schedule the release of funds to your account. Please remember that inter-bank transfer times can affect the speed at which the cash hits your account and we cannot guarantee how long this process may take. However, we will do our best to get it to you on the same day.

Learn More

Want to learn more about personal finance? We have a range of information available on our site, including the lowdown on emergency cash loans no credit check and micro loans. Keep up with the Nifty blog for a range of finance and lifestyle information.

Alternatively, if you would like to apply for a quick personal loan, but have some questions that have gone unanswered, head over to our FAQ page for answers to our most common enquiries. If you still can’t find the answer to a specific question or would like to talk directly with one of us, just send us a message via our contact page or call us direct on 1300 471 328.

Who can apply?

18+

You're at least 18 years old

kangaroo

You're an Australian Citizen or Permanent Resident.

Hand holding up 3 fingers

You've been receiving a regular income into a personal bank account for at least 3 months.

Email address @

You have an active mobile number and email address.

How it works

Small Loans

$300 - $2,000

small potplant
Loan amounts:$300 - $2,000
Terms:3 - 6 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
VIEW EXAMPLE

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
VIEW LOAN DETAILS

Medium Loans

$2,001 - $4,600

medium potplant
Loan amounts:$2,001 - $4,600
Terms:13 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
VIEW EXAMPLE

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
VIEW LOAN DETAILS

Large Loans

$5,000

large potplant
Loan amount:$5,000
Terms:13 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
VIEW EXAMPLE

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43

VIEW LOAN DETAILS
* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

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