 TITLE: What Is Microlending? CONTENT: Microlending Pros and Cons\n--------------------------\nMicrolending has some benefits and disadvantages to be aware of.\n**Pros**:\n*   Microloans are generally easier to get than traditional business loans, especially for new businesses or those with poor credit.\n*   You may also receive access to education and assistance a traditional lender wouldn't offer, which can improve your chances of business success.\n*   If the lender reports to at least one of the three commercial credit bureaus—Experian, Dun & Bradstreet and Equifax—repaying the loan can help your business build a credit history. This can make it easier to qualify for business credit in the future.\n**Cons**:\n*   If you need more than $50,000, a microloan won't provide enough money. You'll either need to look elsewhere or supplement your microloan with other funds.\n*   Microloans may require putting up collateral or making a personal guarantee.\n*   Failing to repay the loan can hurt your business and personal credit, and you could lose any collateral you pledged. END