How to effectively borrow capital for micro enterprises?

Are you a micro-enterprise owner and having difficulty raising capital for your business? The following article from SeABank will suggest loan channels and ways to help micro business loans succeed. Read now!

What is a micro enterprise?

A micro-enterprise is an enterprise with a total number of employees participating in social insurance annually not exceeding 10 people, with total revenue and total capital by industry in accordance with Article 5 of Decree 80/2021/ND-CP specifically as follows:

• Micro-enterprises in the fields of agriculture, fisheries, forestry, industry, and construction: Total annual revenue and total capital do not exceed 3 billion VND.
• Micro-enterprises in the trade and service sector: Have total annual revenue not exceeding 10 billion VND and total annual capital not exceeding 3 billion VND.

Micro enterprises usually have a maximum capital of 3 billion VND per year.

Through which channels do micro enterprises borrow capital?

To borrow capital to develop a business plan, micro-enterprises can use the following 3 loan channels:

Non-bank credit institutions

Currently, due to the increasing demand for loans to expand business activities of micro-enterprises, non-bank organizations have developed many loan product packages aimed at these customers. These loan packages often have simple procedures and quick processes.

However, businesses have to pay higher interest rates when borrowing capital from non-bank credit institutions.

Government loan support program for businesses

The Government's micro-enterprise loan support program helps many businesses of this size increase their access to capital under more favorable conditions. With attractive policies and interest rates, micro-enterprises can easily obtain capital to expand their scale and business operations as well as invest in production technology.

Government support makes it easier for micro-enterprises to access capital

Thanks to the Government's support program, the micro-enterprise community can develop sustainably, thereby helping to grow the country's economy. Some of the Government's programs to support micro-enterprises in borrowing capital include: Venture Capital Fund for SMEs, SME Development Fund and Credit Guarantee Fund, etc.

Commercial banks

With the aim of supporting micro-enterprises to easily access effective capital sources, the commercial banking system in Vietnam has implemented many micro-enterprise lending programs with optimal interest rates to create conditions for this business model to easily access capital sources.

Loan programs are often credit products, financial consulting support, professional training, business connections, etc., contributing to improving management capacity and sustainable development for micro-enterprises.

So what does a business loan application include? Normally, a business loan application requires documents such as legal documents, loan documents, financial documents, and collateral documents.

Commercial banks are also an effective lending channel for micro-enterprises. 

Secrets to help micro-enterprises borrow capital effectively

Realizing that micro-enterprises face many difficulties when borrowing capital, the State Bank has issued and implemented monetary policies to support micro-enterprises to have convenient access to capital. In addition, reputable credit institutions have also given notes that micro-enterprises need to improve in order to borrow capital effectively. Specifically:

• Improve internal business issues: Businesses need to have many reasonable solutions to improve issues related to legal procedures, business reporting, etc. to ensure that information is provided fully and accurately. In addition, businesses also need to seek advice from financial experts to have the optimal solution.
• Choose the right loan package: Micro enterprises should learn or seek support from financial institutions to understand the nature of each loan package. From there, evaluate and choose a loan package that suits the capital needs of the enterprise. Some industries that commercial banks apply for loans with preferential interest rates include: Textiles, Pharmaceuticals,...
• Prepare complete loan application documents: Micro enterprises need to focus on developing effective loan plans as well as preparing complete documents and ensuring that they have all the necessary documents to facilitate a quick appraisal process. If you are still confused in preparing loan documents, business owners should seek advice from credit institutions.

How to help micro businesses borrow capital effectivelyfruit 

Financial solutions for micro enterprises at SeABank

Understanding the difficulties and challenges in the financial issues of micro-enterprises, SeABank offers a loan product package with outstanding features that are highly competitive in the market to meet the diverse needs of customers. So what are those advantages?

• Simple and quick loan procedures help businesses save time.
• Loans with competitive interest rates, suitable for the finances of this customer segment.
• Disburse capital quickly to promptly meet the business needs of micro-enterprises.
• Providing a variety of loan products, suitable for different fields and industries.
• SeABank has a team of experienced consultants, attentive customer care, always offering reasonable options for the business's situation.

Micro-enterprises often face many difficulties in accessing capital, so the loan program for micro-enterprises with preferential interest rates is responded to by many micro-enterprises. Hopefully, through the article, customers can update the way to help micro-enterprises borrow capital effectively.

Don't forget to contact SeABank immediately via hotline 1900.588.952 for more detailed advice on loan applications for micro-enterprises!