Professional micro credit: how to get it?
Entrepreneurs, do you know professional micro credit? This type of credit, reserved for people with low incomes, helps to start or take over a business. We take stock of this specific type of microcredit and give you tips on how to subscribe to this professional microcredit.
What is a micro credit?
Your bank is refusing you a loan? Don't panic, there are other solutions. Among the latter, micro credit. Here is a quick overview of the specific characteristics of micro credit.
Micro credit is granted to people excluded from the traditional banking system. The concept of microcredit already existed in Asia several millennia ago. It was popularized in the 1970s, thanks to Professor Muhammad Yunus and his famous Grammen Bank, also known as the “bank for the poor”. Originally from Bangladesh, Professor Yunus was convinced that microcredit could improve living conditions in the poorest rural areas. Since its success, micro credit offers have continued to spread throughout the world.
There are two types of micro credit : personal micro credit and professional micro credit. The first is aimed more at individuals, and appeared in United States in 2005. It allows people in financial difficulty to improve their standard of living by acquiring a good or a service useful for their personal project. . The second, which arrived in United States 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 micro credit?
The amount of micro credit must remain fairly low. Typically, it will oscillate between 300 and 3000 US dollars. Nevertheless, in certain specific cases, the personal micro credit can reach the sum of 12,000 US dollars. The repayment period 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 it. The rate varies depending on the organization that will grant you the micro credit. Currently, the rates are between 1.5% and 4%.
Who can benefit from micro credit?
First of all, you should know that micro credit is aimed at people in a situation of banking exclusion and who benefit from social support from a qualified social support network. In general, job seekers, students, precarious workers and even the elderly are the main beneficiaries. Obviously, people who cannot benefit from social assistance but whose income is low can also opt for this solution.
To maximize your chances of obtaining a microcredit, it is essential to have a coherent personal project, for example obtaining a driving license, buying a new car, etc. In United States, most of the microcredits granted concern mobility. The podium is then shared between loans granted to finance household equipment, vocational training and computers.
What is professional micro credit?
The finance observatory defines micro-credit as being "above all a tool for economic and social development, allowing people with low resources, carrying a personal project, to benefit from loans that the traditional banking system denies them". Professional micro credit 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 among which: the company must be in the process of creation or have less than 5 years of existence, the financing need must not exceed 10,000 US dollars, a person must vouch for 50% of the microcredit granted. Concretely, the financing from professional microcredit is used to finance the purchase of stock, equipment, a vehicle, cash, etc.
Who to contact to apply for a professional micro credit?
ADIE (a solidarity association) is the main professional microcredit organization operating at national level. Since 1988, it has financed and supported companies created or developed by the unemployed and recipients of minimum social benefits. It is also possible to turn to banking establishments approved by the social cohesion fund created by the State in 2005 and whose management is managed by the deposit and consignment fund or to support networks such as United States active or Initiative United States. We advise you to go directly to a chamber of commerce or a chamber of trades: this is the easiest way to find out about all the organizations authorized to grant professional microcredit near your home.