Latest updates on micro business loan program

Are you running a micro business and looking for funding to grow? Join [website name] to learn about the latest updates on the program micro business loans. In this article, learn how to borrow capital simply, quickly and make the most effective use of capital for your business.

What are micro-enterprises?

Micro-enterprises are enterprises with an average annual number of social insurance participants of no more than 10 people, and total annual revenue or total capital not exceeding the level prescribed by law for each specific industry. According to Article 5, Decree 80/2021/ND-CP, the total revenue or total capital of micro-enterprises is divided into 2 main groups as follows:

• Group of micro enterprises in the fields of agriculture, fisheries, forestry, industry and construction: Total annual revenue not exceeding 3 billion VND, or total annual capital not exceeding 3 billion VND.
• Group of micro enterprises in the field of trade and services: Total annual revenue does not exceed 10 billion VND or total annual capital does not exceed 3 billion VND.

According to the White Book on Vietnamese Enterprises 2023, as of December 31, 2021, Vietnam had up to 489,233 micro-enterprises, accounting for 69.3%, attracting 6.1 million billion VND, but the total capital only accounted for about 11,3% of the entire business sector. This shows that micro-enterprises are facing many obstacles in accumulating and accessing capital.

Micro-enterprises are growing more in the Vietnamese market

Main lending channels for micro enterprises

Currently, micro-enterprises can refer to 3 main lending channels as follows:

Non-bank credit institutions

Currently, non-bank organizations are also developing many micro-enterprise loan packages. The highlight of these loan packages is the quick and simple procedures. However, the interest rates at non-bank credit organizations are often higher than micro-enterprise loan packages at commercial banks.

Government Business Support Program

Micro-enterprises can also refer to the Government's Loan Support Programs to increase their access to capital with more favorable conditions. Thanks to preferential policies and low interest rates, small businesses can easily access capital to expand their business operations, invest in new technologies, and create jobs.

This promotes the sustainable development of the micro-enterprise community and contributes to global economic growth. Some support programs that micro-enterprises can refer to are as follows: SME Development Fund and Credit Guarantee Fund.use, Venture Capital Fund (VC) for SMEs, Project 844”- supporting the national innovation startup ecosystem,...

Commercial banking system

With a key role in the economy, Micro Enterprises are increasingly asserting their important position in promoting growth, creating jobs and contributing to socio-economic development. In order to support Micro Enterprises to access capital effectively, the Commercial Banking System (CBS) has been implementing a variety of preferential loan programs, creating favorable conditions for Micro Enterprises to develop.

In addition to credit products, commercial banks also actively provide practical support services such as financial consulting, business connection, professional training, etc., contributing to improving management capacity and sustainable development for micro-enterprises.

Micro enterprises can borrow capital from commercial banks.

The secret to successful borrowing for micro-enterprises

Borrowing capital is an effective financial solution to help micro-enterprises realize their business ideas, expand production activities and promote growth. However, to have their loan applications approved successfully, micro-enterprises need to master the following tips:

• Build a detailed and feasible business plan, effective and with high loan recovery ability.
• Loan applications must include complete documents as required by each bank or lending institution.
• Micro businesses needSelf-improvement of management capacity, especially financial management capacity, credit history reputation, no overdue debt, good financial autonomy.
• Carefully research loan programs, compare interest rates, loan conditions, loan terms... to choose the capital source that best suits your business needs.
• It is necessary to prepare carefully for the loan presentation, showing confidence, professionalism and high persuasiveness.

After successfully borrowing capital, micro-enterprises need to note:

• Should borrow capital with an amount appropriate to the financial capacity of the business.
• Use the loan for the right purpose and have a specific repayment plan.
• Update financial information regularly to your bank or lending institution.

Micro-enterprises need to have a feasible plan for using loan capital.

Optimal micro-enterprise lending solutions at SeABank

SeABank is a leading commercial bank in Vietnam with many years of experience in providing financial solutions for micro-enterprises. Understanding the difficulties and needs of micro-enterprises, SeABank offers a loan program with many outstanding advantages, meeting the maximum needs of this customer segment. The outstanding advantages are as follows:

• Provide attractive loan interest rates, suitable for the financial capacity of micro-enterprises.
• Simplify loan procedures, help micro-enterprises save time and complete loan procedures quickly.
• Quick loan disbursement after loan application is approved, helping micro-enterprises to promptly meet business needs.
• Providing a variety of loan products to meet the capital needs of micro-enterprises in different fields and industries.
• SeABank has a team of professional and experienced consultants, always ready to support micro-enterprises throughout the loan and service usage process.
• Provide attentive and dedicated customer service, answering all customer inquiries quickly and effectively.

SeABank is currently offering many preferential interest rate micro-enterprise loan packages.

Hopefully with today's article, you have a better understanding of the latest updates related to the programs micro business loans. Now is the perfect time to take advantage of the latest micro business loan program and turn your business plans into reality.

In addition, do not forget to contact SeABank today for more details about the micro-enterprise loan program at the website, contact Hotline 1900.599.952 (Business customers) of SeABank or contact your nearest branch. SeABank's team of experts will be ready to help you choose the solution that best suits your business needs.