Small Business Financing for Women

2015-01-21

Jeffrey Bumbales

Women-owned businesses make up over 40% of all private companies in the US. More than 13 million people are employed by these female-led businesses, and many of these companies generate over one trillion dollars in sales every year.

Unfortunately, many women find it challenging to get a loan for their business. On average, women are less likely to get approved for debt financing than men, and when they do, they tend to qualify for less. Not only do they face a more difficult time securing debt financing, but women usually have less access to angel investor networks and venture capital.

The good news is, many determined women have not let these hurdles stop them from starting and running their own businesses. And at Credibly.com, we help women who are passionate about their businesses get the funding they need to become hugely successful.

5 Options: Business Financing for Women

The types of funding options that are available to female business owners vary depending on the nature of the business. Here are some of the more common funding options for women entrepreneurs:

1. Standard Small Business Loan

A common and well-known option to finance a business needs is through a traditional small business loan. With this type of loan, factors that the lender will look at include your credit history, the type of business you’re operating, what your company’s assets are like, and how long you’ve been in business. Most of the time, an asset will be needed to secure the loan as collateral.

After approval, you’re obligated to pay back the loan in regular payment installments of a specified amount, with interest charged against the outstanding money owed. The process typically takes 90-120 days when borrowing through a traditional bank, but online lenders can help you apply and secure funds in just a few days.

2. Lease Financing

Instead of flat-out buying all of the equipment you need to run your business, you can choose to lease them instead. Things such as computers, cars, and machinery can be leased for a specific time period.

For short-term leases, the equipment is returned after the lease expires. Long-term leases are considered capital leases, which help fund a purchase. In this case, the company that’s financing the assets are considered to have bought the equipment, with you, the borrower, gradually making payments until the equipment is paid in full.

3. Business Line of Credit

A line of credit is somewhat similar to credit cards: you’re given a certain amount of money that you’re allowed to borrow, and you take out only as much as you need at any given time. Interest is paid only on the money that you took out of the line of credit.

4. Working Capital Loans

Small business working capital loans are perfect for healthy businesses with steady revenue. Offering shorter payment periods and flexible usage, our working capital loans provides speed, simplicity, and versatility to meet the funding needs of any small business.

5. SBA Loans

The SBA has designated a variety of loan programs specifically for women. The rules for an SBA loan are basically the same for many other loans: you’ll need a healthy business credit report and a good business plan. SBA loans are those that are backed by the Small Business Administration. While the SBA itself doesn’t give out business loans, it offers their promise that your business will repay the loan back to the lender.

There are plenty of alternatives available to the traditional small business loan for women to take advantage of. At Credibly.com, we offer convenient and flexible working capital solutions for your business to help you not only stay in the game but conquer it too.

Take your first step towards accessing the funds you need, and start the application process right here. When you apply with Credibly.com, you’re applying with a reputable company that understands your business’s financing needs.

 

Apply Now!