The economy is changing at a rapid pace and today women also take part in entrepreneurship. Nowadays, women prefer to work rather than staying at home and starting a new business is the best option available to them.
Gone are the days when only men use to run a business as now, females are also competing them. Being successful needs patience, hard work, and commitment, but most significantly, the finance to achieve your goal. Though, the desire to possess a business entity is only the beginning. Thanks to the small business lending for women.
According to the 2012 survey of National Women’s Business Council, total 9,878,397 businesses in the United States are owned by women. In 2007, the same figure was 7,792,115, which means there has been an increase of 26.8% in just 5 years.
Women-owned businesses are getting popular day by day so it’s a good opportunity for females to start their own business if they want to earn a good income.
Funding a small business is no more a big issue as now small business lending is easily available. All you have to do is to look for the start up business ideas and then estimate your small business start up funding.
If you are among those women who want to start a small business, then this blog post will help you a lot. Here you will get detailed information about debt financing options:
IN THIS ARTICLE
- Types of Small Business Loans for Women
Types of Small Business Loans for Women
Choosing the best type of small business lending is the most difficult task that’s why we have gathered a list of some best loan alternatives for women-owned small businesses. Now it’s possible to fund my business by selecting any of the following small business start up funding options.
1. SBA Loans
SBA stands for Small Business Administration and their loans are much popular among woman entrepreneurs. These loans are technically the loans being certified by the government. It means lenders encounter less risk and borrowers get long-term financing plus low rate.
Microloan program by SBA is one of the best options for the women-owned small business. This program offers a sufficient amount to start up a small business.
2. Short Term Loans
Women can also go for this small business lending option if their required capital amount is small. Short term loans are usually offered for a period of 3, 6, 12 and 18 months. The amount of short-term loan varies from 2,500 to 250,000 US Dollars.
If you are new to the business or don’t possess strong creditworthiness, then short-term loans are the best choice for you. OnDeck Capital, Foundation, and QuarterSpot are among the top lenders for small business start up funding.
3. Term Loans
Majority of you must be aware of term loans. These types of loans are easily available for small businesses. Hence, funding a small business has become much easy for women. All you have to do is to apply for the loan and then pay back the principal amount plus interest for a specific period of time.
Traditional banks usually deal with term loans. However, banks are not the only provider of term loans as now you can also find the alternative lenders such as Bond Street, Lending Club, and Funding Circle. All these alternative lenders offer low-interest rate and long-term financing as compared to the traditional banks.
4. Business Lines of Credit
Business lines of credit can also be taken into consideration to fund my business. It is a flexible way for financing your business. The best part of this loan is that the borrowers just pay the interest on the amount which is drawn by them. Once the whole amount is paid back, the credit line comes back to its initial amount.
Lenders such as Credit Junction and Lending Club offer low-interest rate but they are tough to qualify. If you have recently started your business, then BlueVine and Kabbage are the best lenders for you.
5. Small Business Grants
Small business grants are also available for women if they want to fund their business. Business grant is basically a "free money" because you don’t have to pay back that amount, however, these grants are much restrictive for small businesses. You have to fulfill some requirements in order to get qualified for a small business grant. On the other side, business grants are not suitable for every businesswoman. But do submit your application if your business qualifies.
Let’s have a look at top 5 small business grants for females in 2017:
1) Walmart Global Women’s Economic Empowerment Initiative
Walmart GWEEI must be your top priority if you are a female entrepreneur. It’s an international program that supports business women by offering small business grants. Over $100 million has been set aside for this purpose.
2) Eileen Fisher Women-Owned Business Grant Program
This program aims to fund all those women-owned businesses which are committed to sustainability, innovation, and social consciousness. Their minimum grant amounts to $12,500.
3) Zions Bank Smart Women Grants
Zions Bank provides grants across 6 different categories, including teacher support, elder and child care, and culture and arts. $18,000 is their small business grant.
4) Amber Grant
Amber grant program is best suited for all those women who have just begun their small business.
5) New Media Women Entrepreneurs
This program provides $14,000 to all those females who undertake entrepreneur business relating to information and news.
So these are 5 different ways for small business start up funding. With small business loans, women can easily execute their start up business ideas. Choose any of these lending options as per your funding requirement in order to accomplish your business goals./small-business-loans-women//wp-content/uploads/2017/11/Successful.jpg/wp-content/uploads/2017/11/Successful-150x150.jpgSmall Business Loans