After gaining valuable experience working for someone else, Ronieri knew he was ready to open his own business. Based on his understanding of the retail perfume business and his talent for working with the public, he knew he could run a successful perfume store. He even knew where he wanted to open his store - in a kiosk at a mall. But this Brazilian native wanted to be smart about financing his business.
Ronieri could have used credit cards to finance the purchase of his new kiosk and his initial inventory, but he was well aware of the high interest rate he'd have to pay. So he contacted a government loan program and began their loan application process. Unfortunately, they weren't used to dealing with a smaller retail start-up business, and asked for mountains of paperwork and documentation. Ronieri was getting frustrated by the time and effort required to borrow money.
Then he decided to contact ACCION USA. Since he had so much of his paperwork already in order, his loan approval was quite quick. He set-up his kiosk and has already hired part-time help. Ronieri is hoping, one day, to expand into a storefront in the same mall. When he does, he hopes to have another positive experience working with ACCION USA to get his financing.
About U.S. Microfinance and ACCION USA:
Have you ever thought about how the new café on your corner and the delivery service that brings the fresh baked goods acquired the financial resources to start their business? Chances are, they drummed up support from their friends and family, dipped into their personal savings, used a high-interest credit card, or all of the above. An estimated 10 million small businesses in the U.S. face difficulty obtaining loans from traditional banks, even prior to the current “credit crisis.” Microfinance institutions, like ACCION USA, support these “unbanked” small businesses by giving them access to fairly-priced capital and business education.
Small businesses also help stabilize low- to moderate-income neighborhoods and rebuild our economy through income growth and job creation. Self-employment provides workers with a way to increase their incomes, support their families, and strengthen their communities. As unemployment rises in the U.S., more and more people are turning to self-employment and start-up enterprises as a way to take control of their economic futures and provide employment opportunities in their communities. The need for support of small businesses in the U.S. is great, and it is one that ACCION USA has been striving to meet since 1991.