Loans for startups by young people

I was surfing the web for a site on personal finance, and came across this gem. For anyone starting up a business, particularly if you are young, one of the major challenges you face is obtaining finance. This organisation called ENYA (Enterprise Network For Young Australians) and NAB have partnered up to offer microfinance loans for young people aged 18-29 to start up a business.

Interest rates are 9.95% which seem pretty decent to me, considering the market rate for house loans has to be 7.75% (dont quote me on it, its an educated guess). Amounts of $500 – $20,000 can be borrowed. The only requirement is that you have to a sound business plan and be willing to take on a mentor.

For more information, check it out here. One of the founders of the organisation is Daniel Clarke, a guy that went to my school and was a few years ahead of me. He was dubbed one of Australia’s youngest millionaries and had several IT businesses.

If you think about its a really good initiative. Most financial lenders are reluctant to lend money to start ups and young people, considering their lack of a track record and business experience. Also, the amount of money involved and the risk involved, is not really worth it on their part. So its something worth investigating, if your looking at starting up your own business.

Make me think about putting together a business plan………….

Matt

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One Response

  1. trying to start an insurance agency targeting the senior market(baby boomers). Have a marketing firm that presets appoints, 10 a week, with the average sale earning $300. I only need about $5,000 and can pay back within 1 year

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