Perhaps you have heard of the fabled “no interest loan.” It sounds too good to be true, does it not? Well, that is because it is. However, there is indeed such a thing as a no interest loan. These loans are just not available for business owners or entrepreneurs to secure for business pursuits. But there may just be a sneaky way around that. This post will give you some scenarios that would indeed qualify for a no interest loan. It is up to you to decide if you can find a way to manipulate these situations to benefit your business.
First and foremost, no interest loans are typically reserved for those pursuing a higher education. This may not directly help you to grow or start your own business. However, it should go without saying that an education will certainly not hurt your entrepreneurial pursuits. Tuition reimbursement may not be a possibility for an entrepreneur, but if you apply for a no interest loan to receive an education, you can use those funds to obtain a degree in business or finance. These are both areas that will greatly improve your chances at successfully running a business. Or, perhaps, you may wish to use a smaller no interest loan to take only a course or two that would immediately benefit your business, such as management courses. This not only helps to better prepare you for business, but it also frees up your other money to put towards the business, as well. If you are an entrepreneur looking to secure a no interest loan for business purposes, you may wish to use the funds to secure an education. Then, you can dedicate your own money to start-up costs.
Another situation that will certainly qualify you for no interest loans is an emergency that you do not have the financial ability to take care of. If you are an entrepreneur low on cash and your house or apartment gets flooded out, you can use this opportunity to secure a no interest loan. This may not benefit your business directly however, it allows you to save what little capital you do have for business pursuits. This is extremely beneficial if you are teetering on the edge of losing all your hard earned money due to some bad weather. The same can be said for current small business owners, as well. If you own a business that loses revenue due to an uncontrollable circumstance, leaving you with little to no liquid funds, you may qualify for a no interest loan. This will cover your personal expenses, so that you can allocate your own money to your business. If you have recently dealt with an emergency, you may qualify for a no interest loan.
The last circumstance that may lead you to qualify for a no interest loan is called “general assistance.” Just as the name implies, these loans are typically disbursed to individuals who need to purchase a high-cost necessity, such as a washing machine, car or even house. Once again, you must not have a lot of personal assets in order to secure one of these loans. You cannot start a cleaning business with this funding. However, if you are low on cash and would like to purchase a car so that you can run a business effectively, this may be the perfect solution. Of course you would not qualify if you are looking to get a second car or a company car. But, if you need to purchase a car for your own personal use, who is to say you cannot use other funds you have to personalize your vehicle with your business’ logo or contact info? This may be a moral grey area for some. However, if you need a car and do not have the money to buy one yourself, you may be able to secure a no interest loan through your religious organization, state or elsewhere.
If you really want to secure a no interest loan for business, there may be a useful alternative. The Kiva network offers zero interest loans with no fees. These no internet loans are provided to entrepreneurs in the United States by the Kiva community, a group of lenders, corporate sponsors, local governments and angel investors. This Kiva network makes it entirely possible to get a chance at a zero interest loan for business without having to think of creative workarounds.
While unfortunately there is no such thing as a no interest loan exclusively for business purposes, there are several scenarios that entrepreneurs and current business owners may be able to take advantage of. If you are short on cash and hope to be able to dedicate all your resources to your business, you may be able to use one of these three situations to secure a loan to fund your personal life. Consider these options and decide for yourself whether you feel comfortable finding a way to use these to benefit your business pursuits. If you have ever obtained a no interest loan to buy a business to help your business out, let us know in the comments below. We would love to hear about your experience.
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