Business Loan for a Minority or Women Owned Business
A business loan is difficult to get for a minority owned business (MOB) or women owned business (WOB) although they are two of the fastest growing sectors. If your business falls into these categories, there is help available.
Women and minorities are courted by politicians and targeted by advertisers, but when it comes to getting a business loan for the companies they own, most banks turn away. There are community programs that help MOB and WOB get a start, but for continued growth and development, they need loans and access to business funding.
Who Specializes in Giving Loans to Minority-Owned and Women-Owned Businesses
No matter who owns it or what they sell, every business big and small needs access to capital in order to survive and grow. Most small businesses look for additional capital by seeking out loans.
Traditional bank loans are difficult to get for any small business. In order to be approved, banks require a large amount of collateral, which most small businesses do not have.
You can also turn to the Small Business Administration (SBA) for a minority business loan. Although the SBA is not a bank and does not grant loans, they do maintain a list of preferred lenders who are more likely to give loans to a small business, especially minority owned and women owned businesses.
This is a popular choice for both parties because the SBA provides a guarantee that the loan will be repaid and the small business gets its loan, so everyone is happy. However, even with these provisions in place, it could still take up to two years before you receive your money.
How Can Women-Owned and Minority-Owned Businesses Get Access to Capital
When you need access to capital, time is of the essence so you may have to go outside of traditional channels to an alternative lender. For some entrepreneurs, this can be a scary thought, but it doesn’t have to be.
In the past, alternative funding might have meant shady, back alley deals and excessive amounts of interest, but that is not the case anymore. As banks and other government agencies tighten the reins on their lending practices, making it more difficult for MOB and WOB to receive loans, many small business owners are turning to alternative lenders for fast business funding.
One of the most popular methods for quick business financing is account receivable factoring. This is a centuries-old practice in which a factor will purchase your account receivables and provide you with a percentage of their value, in cash. Nevertheless, each company is different so it is important that you know and understand the terms before you decide which is right for your business.
A traditional factor can provide you with funding in a few weeks. However, they typically charge expensive fees, thousands of dollars, which gets added to the cost of your loan. In addition, they have policies that may force you to acknowledge to your customers and employees that you are having temporary financial difficulties.
The best solution for immediate business funding is a cash advance company, like Financing Solutions (www.fundmypayroll.com). Using a cash advance company, you can be approved in one day and have the money in your account within 48 hours. Unlike other funding sources, the money you receive has no restrictions so you can use it for anything, such as making payroll or to finance working capital.
Financing Solutions is accustomed to working with MOB, WOB and other businesses that have assets of 350,000 to six million dollars. You can quickly receive fast business funding from 5,000 up to 150,000 dollars. Even if you have already been approved for an SBA loan, a cash advance from Financing Solutions can help bridge the time gap, giving you the funds you need right now while you wait for your loan to come through.
Statistics on Minority-Owned and Women-Owned Businesses
MOB and WOB are no longer the little guys that no one notices anymore. Each year, their numbers grow, making them a significant force in the overall economic health of this country.
For example, these businesses account for more than three trillion dollars of the American economy, creating over 20 million jobs. They also make up more than six percent of all businesses that are not farming-related. Some of the top industries for MOB and WOB include retail, automotive, health care and social assistance.
In short, MOB and WOB help make the country strong so it is crucial that they maintain their current path of development and expansion. Access to capital from a cash advance company can help many businesses continue to succeed.