Women-owned businesses generate more revenue than their male counterparts, but still face a funding gap when it comes to getting loans and other forms of financing. There are several resources for women entrepreneurs looking to secure financing.
SBA district offices offer programs that help women entrepreneurs prepare their businesses and access credit. They can also connect borrowers with Women’s Business Centers, which provide counseling, training and federal contracts.
Women are making a huge impact on the business world, but many find it hard to secure funding for their companies. This is largely due to misperceptions about female entrepreneurs and their ability to manage business credit.
Some banks offer financing options tailored for small businesses, including specialized loan programs for women. These loans are often backed by collateral and can help you build your company’s credit rating. Others are designed for specific purposes, such as equipment financing or commercial real estate financing.
Other sources of financing for women include grants and crowdfunding. Grants are a great option because they don’t require repayment and can be obtained through a variety of sources, including federal agencies and private organizations. Crowdfunding involves a time-limited fundraising campaign that is publicized on online funding platforms. These platforms typically charge a fee to process the transaction, but some may waive this fee for women-owned businesses. Lastly, you can also consider equity financing. This is when investors invest in your company in exchange for a stake in the company.
The SBA offers a range of financing options for women entrepreneurs. Mission-based nonprofit organizations and community development companies work with the SBA to provide microloans for entrepreneurs in underserved communities. These loans can cover everything from equipment to paying off existing debt. However, the underwriting and funding process can take longer than traditional business loans.
The Small Business Administration also provides several standard business loan programs for women, including 7(a) and Express loans. These loans can be used for a variety of purposes and have repayment terms ranging from 10 to 25 years. The SBA also offers CDC/504 loans that can be used for real estate purchases or other large business expenses. These loans typically require collateral and a personal guarantee from the borrower.
Women-owned businesses are growing quickly and creating jobs across the country, but they still face a gap when it comes to funding. At Lendio, we’re dedicated to closing this gap and making it easier for female entrepreneurs to access business funding. Our online application connects you to a marketplace of lenders that offer fast and easy financing.
Whether you’re in the early stages of business or ready to buy new equipment, the right lenders and programs can increase your chances of getting a loan. The borrowing limits can be generous and the repayment terms a little more lenient than conventional loans. Online lenders can offer a quick decision and often have fewer or no fees.
Some lenders focus on specific demographic groups, such as women or minorities, while others use flexible qualifications to help more people qualify for financing. For example, some online lenders don’t require a personal guarantee and may allow you to borrow money from your own bank account.
Some nonprofit organizations also offer funding for women entrepreneurs, such as the Tory Burch Foundation. The foundation connects borrowers to community development financial institutions (CDFIs), which specialize in providing loans to low-income and underrepresented communities. These lenders can provide a startup loan, working capital or even real estate financing. They can also help borrowers find other forms of financing, like grants or crowdfunding.Business Loans for Women