It has been said that women who seek to be equal with men lack ambition, so to strive for higher goals you may need to seek business loans for women. But first, you need to know where to look.
Women are strong. And studies show that more than 10 million firms are owned by women. So why is it so hard to find business loans for women?
Are Business Loans for women Easier to get from a Bank?
The purpose of business banking is to provide a wide range of financial services and cash management solutions to businesses of all sizes. Among the services you can get are business bank loans, business checking accounts, credit cards, lines of credit and advisory help.
Regrettably, these options don’t always trickle all the way down to small businesses or women owned businesses. This is especially true when it comes to business loans for women.
According to the National Association of Women Business Owners (NAWBO), more than 30 percent of businesses have women at the helm. However, they account for less than 5 percent of approved business term loans.
Even worse, more than 25 percent of women entrepreneurs don’t apply for quick business loans because they know their chances for approval are low. In fact, NAWBO research shows that approval rates for women are 20 percent lower than those for male-owned companies.
Gender should have no effect on the ability to obtain fast business loans for women but unfortunately, it seems to make a difference. Thankfully, there are alternative lenders seeking to change all that.
When Seeking Business Loans for Women, What Are Your Options
Bad credit loans – these are available, but at a cost. You may pay more in fees and terms for these because the lender sees you as a bigger risk.
SBA loans – this is one of the most popular options. These are best for companies that have excellent credit with a desire to grow. However, these are typically term loans that you will be paying off for the next 10 years. Also, while approximately 14 percent of these loans go to women owned businesses, it may take weeks or months for approval.
Peer-to-peer loans – an online forum that matches borrowers with investors. With this option, you get lenders that may believe in your business. On the other hand, there is no requirement for lenders to comply with investment regulations.
Who Offers the Easiest and Most Inexpensive Business Loans for Women?
Of course, it’s best to avoid all this altogether. Instead of business loans for women, look into getting a business line of credit for women.
The lender you select is as important as the type of loan you get. Your best option is a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com). They are one of the leading providers of small business financing and lines of credit.
At Financing Solutions, you can get short term business funding quickly and easily. You can use this money for any business purpose. This includes making payroll, handling emergencies and building working capital.
If your business has at least $300,000 in yearly revenue, contact Financing Solutions for immediate business funding. Every women owned business should have a line of credit, just in case.