EU looking at more loans for small businesses

The new proposal supposes that encouraging small business and training will lower unemployment.

08:29 02 July 2013

Unemployed youths may benefit from special training schemes designed to bolster education and reduce unemployment numbers. Plans are in the works for improved loan availability for small business ventures as well, which will hopefully encourage economic development and be another factor in the reduction of unemployment numbers.

If you are hoping for one of these loans, keep a few tips in mind when shopping around:

• Interest—you have heard this a few times no doubt, but paying attention to the available interest rate is essential when you are shopping for loans. While you might want to consider other factors when making a decision, a lower interest rate can mean significant savings over the life of your loans.

 

• Repayment programmes—knowing the available options for repayment your loans can help you eliminate certain institutions, which might not offer what you need. There should be a diverse array of options, and ones that can help you if your business plans do not immediately yield successful finances.

 

• Loan amounts—depending on your plans, some lenders might not be able to accommodate the amount or amounts you are looking for in your loans. You may need to keep looking until you can find a sole lender, or you may be forced to try and acquire loans from a variety of sources, which can make repayment more difficult and certainly harder to track.

 

• Policies—find out if there are certain policies about refinancing or switching banking institutions. If there is something that could prevent you from making the most of your funds, you might want to consider a different bank. Having the freedom to change and refinance for better terms can make the most of your loans and payments.

 

• Terms—another one of the factors you will want to consider when shopping around for loans is the length of the terms that are available.