A microloan works similar to traditional loans, though there are a few key differences. First, microlenders typically won’t reject a business’s application for a microloan based strictly on their credit or available collateral. While they may look at this information, microlenders care more about your income. And because the loans are in small amounts, you can usually demonstrate the ability to pay back it back.

TruFunders is also interested in helping businesses succeed. In addition to providing funding, many will also offer guidance, coaching, tools, and helpful resources. After all, they want businesses who borrow money from them to succeed. Otherwise, they’ll experience a high default rate.