For a variety of reasons, most banks simply do not want to deal with business loans for less than $250,000 and this is where micro-lending steps in. Microloans are business loans normally ranging from $1,000 to $50,000 although loans of up to $100,000 can be considered "micro". According to the U.S. Small Business Administration, the average microloan is about $13,000. Micro-Factoring
Though most traditional factors require a $25,000 minimum in invoice purchases each month to create a financing arrangement, micro-factors are different. This group of small business capital providers will often accept as little as $5,000 in invoice financing each month making them a ready option for new entrepreneurs. For small startups doing business with other businesses (B2B), micro-factoring is the most readily available method of solving problems associated with cash flow when customers require 30 days or more to pay for goods or services.