A Detailed Sample Micro Lending Business Plan Template MyTopBusinessideas.com.

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How to Start a Micro Lending Company Using Our IDEAS
Are you interested in starting a
micro lending company? Do you
need a sample micro lending
service business plan template?
Then below is an in-depth guide
on how to start a micro lending
company. TRENDING THIS WEEK!!!
Many budding entrepreneurs have 25+ Small Business ideas for Small Towns
tons of profitable business ideas in
27+ Profitable Small Scale Business ideas in
their heads. But sadly, most of them Nigeria
don’t have enough funds to launch
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their dream businesses. And for
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this one reason, many business ideas have been abandoned for years.
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However, with micro-lending institutions now springing up everywhere, the story is
changing; budding entrepreneurs are now starting their dream businesses, and many
new small- and medium-scale businesses are now emerging daily.
Industry Based Business ideas
This new trend has made micro lending a very lucrative business in itself. If you are
looking to start your own business, then starting a micro lending company is one of the Agriculture & Farming

best opportunities you can grab right now. Arts & Crafts

Why is micro lending a lucrative business? Automotive

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The answer is simple: micro-lending companies offer financial aid to small businesses
and emerging entrepreneurs that are not eligible for bank loans. And there is a very large Eco-Friendly & Green

market for these companies, since most new businesses, which are small businesses – Education
turn to them for start up funds.
Entertainment

Why is micro lending gaining more popularity? Fashion & Style

Micro lending is enjoying increased global acceptance because its primary motive is to Food

create social development by empowering needy entrepreneurs and helping them Health Care & Medical
become financially independent. Also, micro lending helps small business owners expand
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their businesses by giving them loans for this purpose. These contribute immensely to the
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development of the society as a whole.
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How can you start a micro lending company?
Oil and Gas
Well, that is exactly what this article is all about. If you seem to be interested in the
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business and would like to take a plunge, the following are the steps you need to take:
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Starting a Micro Lending Company – Sample Business Plan Real Estate

Template Retail

1. Write a business plan Security

Services
A business plan includes a lot of vital information about your proposed business, such as
the startup costs and projected revenue, market analysis, and so on. Just as a compass Small Scale Manufacturing
guides the sailor during a voyage, a business plan helps you steer your business towards Sports
achieving your desired goals.
Travel
A well-written, comprehensive business plan can also help you convince investors and
loan-giving institutions that your business idea is very promising.

2. Determine your market

It is important that you develop your mission statement and make a list of your target
customers. You will want to target budding entrepreneurs and small business owners.

Depending on what businesses are “hot” in your location, you can streamline your target
to few industries at first. For example, if you live in a city or country where fishery or other
agriculture-based businesses are the most lucrative, you can start by offering your credit
packages to entrepreneurs in those businesses. Similarly, you can decide to target
women-only businesses, such as day-care enterprises, adult care services, and so on.

3. Get enough capital

While the capital required to start a micro-lending business won’t break the bank, you
may need to source for funds from other sources if you cannot afford the whole startup
cost.

Other sources you can approach for extra funds include friends and relatives, banks (if
you have a good credit rating), government, angel investors, and so on. Depending on
your state or country, the government may issue grants to entrepreneurs with promising
business ideas. If something similar obtains with your state or federal government, apply
for it.

4. Register your company

You will need to register your micro-lending company with the appropriate agency. You
will also need to obtain all the necessary licenses and permits. And most importantly, you
must fulfill legal obligations required by your state of federal government to avoid falling
into problems.

5. Hire quality personnel

This is the most important step in setting up your micro-lending company. All your
employees must have relevant qualification and experience in financial lending as well as
small business assessment. They must know what it takes to build solid relationships with
customers, and they must be willing to achieve that. They must also be able to efficiently
execute the factors included in lending applications.

Bottom line

By effectively implementing the steps above, you will be able to set up your micro lending
company without any problems.

However, remember that micro lending is not based on traditional bank lending
requirements. Before giving any loan, you must ensure that the applicant has the ability to
repay the loan.

Finally, you must bear in mind that this post isn’t meant to be a comprehensive guide on
starting a micro lending company; it only discusses the basic steps involved in setting up
the business. To set up your business, you will need more information as well as
professional advice from both an experienced accountant and a solicitor.

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