The number of female entrepreneurs in the United States is on the rise. In fact, recent research conducted by Kauffman indicated that more than 40 entrepreneurs in the United States are women and the number of female entrepreneurs is increasing at a double rate compared to their male counterparts. Unfortunately, it is only a small percentage of women who get access to capital to start and run a business. There are quite a number of challenges that women entrepreneurs face during their interactions with customers and colleagues. Getting access to business financing, therefore, shouldn’t be another challenge. The bad news is that there are no business loans specifically for women. However, there are direct lenders who focus on offering business loans for women. Besides, women-only business grants are also available which can help women grow their businesses.
The major reception experienced in 2008 led to fewer banks offering small business loans. Very few people who apply for loans in financial institutions have the loan approved compared to those who work with direct lenders. The reason behind this can be the fact that many small businesses generate low revenue during the startup period. Women industries are also underfunded which is also the main reason why most women close their business after only a few years of operation. The good news is that SBA loan programs are available with online lending making it easier for women to access business financing. This comes as a relief for million women owned businesses. Here are some of the best women business loans available;
When it comes to business funding, it is important that you not only rely on business grants. However, it is prudent to submit your application if there are chances of your small business qualifying for the funds. You never know, you may just be lucky enough to take home the price.
Debt financing and equity financing are also ways in which you can raise money for your business needs. With debt financing, you can borrow money from a lender, which is paid with an interest rate over a period of time. In equity financing, the business has to raise money from investors and venture capital whereby the get a portion of business ownership in return.
If you need a large amount of money for your business, working with an investor can be the best option. You also have the advantage of getting business advice from the investors. But unless your business is growing rapidly, it can be quite challenging to find investors. It can also be challenging for women to convince VC firms to invest in their business, and especially when they are not familiar with your products or services. This makes direct lenders the best option when it comes to finding business loans for women.
Being a female business owner comes with several challenges, the main one being getting access to funds. This does not only affect startup businesses. Successful ventures may also require funding from time to time which is important for female small business owners to look for small business loans for women that meet their business needs. Selecting the best loan is as important as accessing the funds. With the best loan, it means that you need to consider different factors which include the loan cost and repayment options. These two can have a great impact on your business. Women are also advised to work with lenders who understand their needs.
One advantage of requesting loans for women from direct lenders is that the funding process is simple and straightforward. Most lenders also do not charge upfront fees and the loan can be approved in as soon as 24 hours. Business loans have flexible repayment options and women with poor credit can also qualify for the loan.
Access to funds is one of the things that hinder business growth. Luckily, many lenders offer loans for women to start business and there is a wide variety of loan options to choose from. All you need to do is compare different lenders for you to come up with an affordable loan to meet your business needs. If you are wondering about where you can easily get funds to start, expand or buy inventory for your business, fill out an application form today and have your loan approved when your business really needs it.