Where to Find Small Business Loans for Women
Although statistics show that women small business owners have had more difficulty in obtaining loans, in recent times, increased opportunities have made it possible for women to turn their business ventures into realities.
Female business owners may not be the majority, but more and more women are demonstrating their capacity for leadership. Although there still persists the obstacle of obtaining the necessary funds to get started, it’s not impossible for women business owners to acquire the funds for their start-ups through different types of lending.
The Small Business Association microloan program (SBA), or microlending is able to help women receive necessary funding from loans issued by individuals as opposed to the traditional bank. Its establishment has especially benefited female business owners because SBA’s assistance emphasizes business ventures run by underrepresented groups such as women. In 2014 alone close to 47 percent of microloans were allotted to female-run businesses.
Another option that could assist women business owners is venture capital. Essentially, venture capital involves bringing in investors or institutions that have a high amount of capital to put up in exchange for equity or say in company operations. Venture capital can be considered riskier than other forms of funding due to the possibility that investors may try to have more input in company decisions, but it could also lead to successful partnerships through continuous support. Although many venture capital funds are not in the hands of women, it’s been demonstrated that women who do own these funds are more willing to invest in fellow female entrepreneurs, and more and more women are beginning to head such venture capital funds.
Alternative funding is also an option available to women, with one example known as financial technology, or fintech. Fintech organizations have increased funding opportunities for women business owners through providing small business lines of credit, for example, to be used towards hiring and recruiting, improving marketing strategies and much more. Overall, fintech allows for more flexible funding options to be available to women thanks to its online aspect.
Traditionally speaking, small business owners have always had a tougher time in obtaining traditional bank loans. The difficulty stems from little credit history, how long the business has been operating, as well as if the loan being requested is less than 250,000 dollars. Despite these difficulties, a traditional bank is still an option for business owners, including women.
For women business owners, small business loans can be acquired through traditional and modern forms of funding. These are just some of the options available to women who are interested in becoming entrepreneurs and business leaders and the list seems to be growing.