Insured micro-loans make for a valuable, quick route to cash when you find your business in a pinch. But with the high interest rates, do your research first and make sure it’s the best approach. Capital can be hard to come by, especially with the stringent requirements of Lebanon’s banks. The segment of the region’s population that falls into that category of “unbankables” is significant – and not necessarily beyond the entrepreneurship ecosystem. As a quick fix for an individual or business in a tough situation, CST Loans offers micro-loans: relatively small amounts of money (up to $5,000, with an average of $2,500) at an interest rate of up to 20%, to be paid off within approximately three years. These loans, operated by CST Holding (which has been around since ‘97) were developed by Chairman Andre Anhoury, with the simple goal of providing insured credit to those beyond the banks. Board Member Raja Abdallah and Regional Operations Manager Elie Zoghby have an honest view of the product they’re offering to the market. Zoghby asks, “if you can go to a bank, why would you come to me?” They’re clear this isn’t the financial service for everyone, but rather a solution for certain circumstances. Often, their micro-loans are used for private expenses: dining room sets, honeymoons, consumer electronics, school tuition and the like. But the micro-loan can also offer a viable path for the entrepreneur, especially one in need of money urgently. CST Loans provides approval in two days; meaning if there’s a sudden loss of vital equipment at your business on a Monday, you could conceivably have cash in hand as early as Wednesday morning, ready to repair or replace whatever it is that broke down.
