ClickCease Micro Business Loans | The Essential Guide | What to Know!

Home > Micro Business Loans – Short-Term Financing for Self-Employed Business Owners

Micro Business Loans – Short-Term Financing for Self-Employed Business Owners

Micro Business Loans – Short-Term Financing for Self-Employed Business Owners

Do you need short term finance solutions for your business?

Looking for short-term finance but not sure what’s the right choice for your small business? With so many loan options available now, finding what works for you can be a daunting and difficult task. That said, if you’re self-employed and trying to get your start-up or small business off the ground, micro business loans could be exactly what you have been searching for.

Offering very small, short-term loan amounts, micro enterprise loans can help you secure the equipment or working capital needed to take your business to the next level. Jacaranda Finance offers self-employed applicants loans between $300 to $10,000 and is 100% online, meaning you could apply for a micro business loan wherever you are and whenever you like. All you need is an internet connection and you’re ready to go.

Best of all, our application process is fast and simple, so we won’t ask you to provide any unnecessary details. You could even apply from your smartphone and have it completed within just a few short minutes. With no application fees, why not give us a try now?

What Are Micro Business Loans?

Micro business loans are very small, short-term loans for self-employed professionals, new startups, or small businesses that are typically anywhere between $1,000 to $50,000. Never heard of the term before? It’s probably a case of geography, as ‘micro loans’ is more commonly used in America. However, you can still access this kind of financing here in Australia, a lot of Australian lenders just offer the equivalent of micro loans as small, short-term business loans instead. Ultimately, there is no major difference between either loans aside from terminology and any specifications individual lenders may have in place.

What Are They Used For?

The practice of micro money lending is sometimes used by organisations in America to grant very small loans to businesses in need. Similar services exist in Australia as well, particularly through programs such as the No Interest Loan Scheme (NILS) and LaunchME. Such frameworks typically only apply to start-up or entrepreneurial endeavours, but micro business loans (or the equivalent) can be provided by lenders to assist a wider range of businesses.

In these cases, micro business loans tend to be used for working capital or the purchase of inventory, supplies, machinery, or equipment. Say you need cash on hand to hire new employees for a big upcoming project, or maybe you need to invest in some new equipment to improve the quality of your product? Whatever your needs, a micro business loan can help you get the funding you need fast.

Is a Micro Business Loan the Right Option for Your Business?

If you’re on the hunt for a small business loan, you’re probably wondering what financing options there are and whether or not a micro business loan is the right source for funding. Basically, it all comes down to the lender and how much you need to borrow.

When you’re looking for finance, your first instinct is probably to approach a traditional bank. Bank loans can be a good financing option for many small businesses, however, they can be much harder to qualify for and are often only available for larger loan requests.

Micro loans, true to their name, are only small and may, therefore, be more suitable for businesses needing quick, short-term cash for small-scale purposes. When deciding whether a micro business loan is right for you, you should consider the following:

  • How much funding do you require?
  • What do you need the money for?
  • When do you need to receive your funding by?
  • Will you be able to make repayments?
  • How could a micro business loan affect your credit history?

Why Choose Jacaranda Finance?

With so many lenders out there, why should you choose Jacaranda Finance? Well, if you’re self-employed and looking for short-term funding to help you reach your professional goals, Jacaranda can provide a micro business loan between $300 to $10,000 to help you get there. Our dedication to 100% transparency 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.

What to Know About Our Self-Employed Micro Business Loans

How much can I borrow?We can provide self-employed applicants micro business loans between $300 – $10,000.
When will I receive my funds?After you submit your application, there will be a short wait as we complete the assessment. If you are approved, you will receive a contract to sign. If you sign it after 5.30pm (AEST) Monday to Thursday, the funds will be distributed the next business day in our first round of banking.
How long do I have to pay it back?You can have up to twenty-four months to repay your loan, depending on your situation and loan request.
Where can I apply?We only accept online applications. If you encounter any issues with the form, please contact us directly.

Who is Eligible for Self-Employed Micro Business Loans?

To be eligible for one of Jacaranda’s micro business loans, you must be a self-employed professional who can check the following points:

  • 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 can tick all of those boxes, then you can apply for a micro business loan today!

What You Need to Apply

Even if you may be eligible for one of our micro business loans, there are just a few documents you will need to provide with your application before we can conduct an assessment:

  • Personal details such as online banking and employment info;
  • A reason for why you are applying for the loan;
  • Your myGov details (if you are receiving Centrelink payments);
  • Your employer’s contact details.

Micro Loans for Startup Businesses with Bad Credit

Self-employed and trying to start up your new business? Worried about bad credit? Well, you’re in luck. Jacaranda Finance takes a fresh approach to bad credit because we understand that people and circumstances can change. As a result, we do not base our assessment solely off your credit score. Poor credit can have an impact for up to 7 years and a lot can happen in that amount of time! So, if we can see that you have made a considerable effort to rectify your credit situation you could be eligible for one of our micro business loans as a self-employed applicant. Still unsure? We recommend you go ahead and submit an application anyway, it’s free to apply and you’re not locked into anything.

Do We Conduct Credit Checks?

The short answer is, yes. At Jacaranda, we conduct credit score checks as a part of our commitment to responsible lending. Worried that this will mean you won’t be approved for a micro business loan? There is no need to be. As discussed, our team does not base an entire assessment on the outcome of a credit score check. Rather, we take a look at other factors such as your standard income and employment status. So, there is no reason to let bad credit stand in your way.

5 Simple ways you can improve a bad credit score fast

The first step to take to go about improving your score is to simply check your credit score online. Contact your credit provider and request a copy of your credit report. When reviewing your credit report, you’ll notice a list of factors that are affecting your current score. Those factors will give you a rough idea of what changes you’ll have to make to start improving your score. Although you can’t improve your score overnight, strictly changing the factors that are listed on your report will help you get your bad credit score back to shape in no time. However, keep in mind that there are certain factors that are more important such as your payment history and credit utilisation ratio. Here are 5 simple ways you can improve a bad credit score fast:

  1. Pay all bills on time. One of the first things lenders assess when reviewing your credit report is how reliable you’ve been with all your recent payments. These payments can include rent, electricity/ water/ phone bills, loans, credit cards, etc. Mistakes as simple as making late payments or completely missing them can have a significant effect on your credit score. Simple mistakes have simple solutions; Improve your credit score by making sure all bills and payments are paid on time and in full. An easy solution to that issue is setting up automated payments. As long as your account has sufficient funds, you won’t need to worry about any missed payments. 
  2. Pay off debt. As mentioned before, your credit utilisation ratio is one of the most important factors affecting your credit score. Try and pay off your debt as much as possible, especially before taking on more debt through a loan. Improving your credit utilisation ratio will have a positive impact on your credit score. Simply, pay off your debt and try maintaining a low credit card balance to get your credit score back in shape fast.
  3. Lower your credit card balance. Similar to the step above, lowering your credit card balance can help you avoid taking on more debt. Lowering your credit card balance will lower your credit utilisation ratio and aid with any spending habits. 
  4. Don’t apply for too many loans. When applying for a loan, avoid making multiple inquiries to different lenders within a short period. This will negatively affect your credit score and affect your potential chances of taking out a loan. Making multiple inquiries during a short period can show some sort of financial trouble to lenders, so apply wisely!
  5. Review your credit report. It’s recommended you check your credit report at least once every 12 months. This is very important as it helps you ensure there are no errors being listed on your report that could be affecting your score. The quicker you notice any inaccuracies, the easier they will be to resolve. As soon as you notice any errors such as wrong/ old information or an incorrect default, you need to have this amended immediately. Errors can play a significant role on your credit score and resolving them could help you improve your bad credit score fast.

How to Apply

Think you are ready to apply for a micro business loan online? With Jacaranda, it’s simple to get started – just follow these easy steps.

Step 1: Apply Online

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: Wait for 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: Sign Your 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: Receive Your 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.

Find Out More

Want to learn more about personal finance? Check out the Jacaranda Finance blog! With a diverse selection of articles, you can read up on a range of finance and lifestyle information bound to inform and educate.

Alternatively, if you’re looking to apply for one of our self-employed micro business loans but have a few questions that have gone unanswered, head over to our FAQ page for some of our most sought-after information. If you still can’t find the answer to a specific question or would like to talk directly to one of the team, just send us a message via our Enquiries form or call us direct on 1300 471 328.

Reviews don’t lie 🌟

Last updated: 19/08/2020, 10:00am

Our low rates

Our low rates

💰 Personal Loans starting from 7.59% (12.24% p.a. Comparison Rate)

🚗 Car Loans starting from 5.29% (5.84% p.a. Comparison Rate).

We never charge early repayment or exit fees.

Apply Now 🚀
Existing client?

Existing client?

Manage your loan easily in one place.

Log In
Had a good experience?

Had a good experience?

Share the love by referring a friend now and receive up to $100 of free credit 💸

Refer a friend

Need a hand? 👋

Jacaranda is 100% online. So, we do not accept applications over-the-phone. However, our friendly team is more than happy to answer any questions you may have.