Women-owned businesses generate $1.8 trillion in annual revenue, but accessing business financing is a challenge for many entrepreneurs. Women are less likely to qualify for loans with banks, and their loan sizes are 33% smaller than those of men-owned businesses. To combat these challenges, lenders offer a variety of business loan programs for women to help close the gender gap in business financing.
While the majority of business loan options are debt financing, there are several other ways to get the cash you need to grow your small business. One way is to explore the available business grants for women, which can be a great option for startups or companies that do not meet the requirements for debt financing. Other funding sources for women include crowdfunding and venture capital.
IFundWomen is an online fundraising platform that helps female-led small businesses raise money and build relationships with investors. Its services include expert coaching, professional creative production and a collaborative entrepreneur community. Additionally, IFundWomen offers access to small business grants for women and equity financing.
Another way to fund a new or growing business is through accounts receivable factoring, which involves selling your outstanding invoices for immediate cash. While this is not the best option for startups or businesses with bad credit, it is a good financing solution for established companies with strong cash flow.
Other business loans for women include short-term working capital loans, which are meant to cover a company’s short-term expenses. This can include paying employees on time, covering the lease for your business or managing overhead costs. Another option for businesses with solid personal credit is a business credit card, which can be used to finance any expense that does not require long-term repayment.
If you are in search of a more significant amount of capital, a long-term business loan may be a suitable financing option for your company. These loans typically have a fixed interest rate and can be used to purchase anything from a point-of-sale system to commercial equipment.
While these types of financing are typically repaid over a period of 20 years or more, some of them can be repaid sooner than this. In addition to these flexible terms, many of them also provide generous borrowing limits and are more lenient on collateral requirements than traditional business loans.
Depending on the type of financing you need and the requirements of the lender, finding a business loan for women can be an easy process with the right resources. In order to simplify the search, consider researching dedicated lenders that can meet your specific financing needs and requirements. Then, compare different business loan options to find the one that is right for your company. Additionally, make sure to research the qualifications and application processes for each business financing option to ensure that you are well-equipped to apply. Lastly, be sure to look into alternative lenders and other financing sources that can help you secure the funding you need without requiring a long, drawn-out application process or requiring large amounts of equity ownership.