![\"Kim](\"http:\/\/www.financenewmexico.org\/userfiles\/Kim%20Blueher%20photo.JPG\")
Kim Blueher, Director of Lending, WESST Corp.<\/p><\/div>\n
A few years ago a massage therapist came to WESST Corp. because she wanted to open a small office.\u00a0She had a business plan and some excellent marketing ideas but not much else.\u00a0She needed a small amount of money to purchase office furniture and equipment to set up her practice.\u00a0What she needed was a micro loan \u2013 a small business loan to help get her business off the ground.<\/p>\n
The massage therapist received her loan under the condition that she meet with one of our marketing consultants to help refine her ideas.\u00a0She began taking classes, including a multi-week class called Marketlink that focuses on delivering a product or service to the marketplace.\u00a0It wasn\u2019t long before her sales skyrocketed from a few hundred dollars a month to a couple thousand per month.\u00a0Recently she returned for another loan, this time so she could move the business to a larger location and hire other therapists.<\/p>\n
Both the original start-up loan and the subsequent loan for expansion are typical of micro loans.\u00a0Helpful when the funding needs of a business are small, micro loans range from as low as $200 to as high as $50,000. \u00a0\u00a0Loans of this size are often difficult to find \u2013 applicants sometimes lack collateral, have suffered credit problems, or have no business experience. \u00a0\u00a0If the business is new, banks may view the enterprise as risky.\u00a0Those who have had credit problems such as bankruptcy or late payments will also have a hard time qualifying for a traditional loan.\u00a0Micro loans are designed for all of these situations.
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WESST Corp is a private, non-profit economic development organization. \u00a0With an average loan size of approximately $15,000, we can be very creative with collateral.\u00a0We also want to understand the story behind any credit problems. \u00a0The manner in which clients have handled past financial problems is a good indicator of character.<\/p>\n
But don\u2019t assume that there are no strings attached.\u00a0We require those starting a new business to write a business plan as part of the loan application.\u00a0While somewhat time consuming to write, a business plan helps clients take an objective look at their business idea and forces them to understand the areas that are critical to the success of the business.\u00a0We also ask applicants to prepare a 12-month cash flow projection to help them learn how cash moves in and out of the business and how the loan will be repaid.<\/p>\n
Once a loan is granted, we make sure clients have the resources they need to succeed.\u00a0One-on-one counseling is provided by consultants that include WESST staff members, as well as community business leaders with specific expertise.\u00a0Customized solutions, targeted guidance and support are offered.<\/p>\n
Classes are also available, not only to those with WESST loans, but to people thinking about going into business for themselves and owners of existing businesses who want to grow their business.\u00a0One of the hidden benefits of these classes is that entrepreneurs who come together to learn often end up supporting each other and making important connections.<\/p>\n
Micro loans are appropriate in any number of situations.\u00a0A company may need to purchase a new delivery truck, or start-up inventory may be needed.\u00a0A warehouse or workshop may be necessary.\u00a0These are typical reasons clients come to WESST, and our clients have started more than 1,850 businesses, accessed more than $2 million in loan capital and created approximately 3,000 jobs.<\/p>\n
The massage therapist is doing splendidly in her new location and sales recently topped $6,000 per month.\u00a0I wish I could say this story is representative of all of our clients but success is truly up to the entrepreneur.\u00a0It takes creativity, perseverance and hard work to succeed.\u00a0If we help a potential entrepreneur understand this, and they decide not to start a new business because they realize it will be difficult, we have also achieved success.<\/p>\n
Learn more about WESST Corp<\/span><\/strong>.<\/a><\/p>\n Download 8_Micro Loans for Small business PDF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A micro loan example, why they are important and how to get one. Continue reading