Everything you need to know about small business loans for women
Starting a small business can be tough and requires a massive amount of courage and passion. Getting funding for your business is one of the most important steps in setting up the business no matter how big or small. There are certain benefits on loans offered to women that own small businesses. Following are a few things you must know about small business loans for women.
What are the important factors involved in getting small business loans for women?
- Solid business plan– It is easy for you to get loans for your small business if you have a strong business plan. Any investor would not hesitate about investing in your business if they see a future growth. As for banks, if they know your business has good potential for growth, it increases your loan repayment credibility.
- Investor benefits– The investor will always look at benefits for them while investing in a business. You can offer them equally shared profits or a certain percentage of the profit share. If you are taking a loan, you will have to pay a percentage of interest in most cases.
- Limit the loan amount– You do not need a fortune to start a small business or to take it to the next level. Prepare a well-constructed plan of your requirements and take a loan only for those requirements. Do not take massive loans, which you might not require.
Which are the different processes to apply for small business loans for women?
- Online applications– Some loan providers will require you to fill online applications for loans. These applications are slightly complex as they require you to submit a plan explaining client acquisition, track record, and projection of future sales.
- Membership– Loan providers have certain conditions attached to their loan offerings, which you need to be aware of. Some loan providers might ask you to register for a membership with their firm to be eligible for a loan from them.
- Application submission– Loans for less than $5000 qualify as economy loans. These loans do not require you to have a fancy presentation of your business plan. You just need to submit your application to your favored loan provider along with an idea of your business plan. You should be able to get a loan within 3-4 weeks.
Where to get small business loans for women?
- Banks– A bank is one of the primary loan providers of small business loans for women. These loans are amortized over term lengths, which means you will be required to pay a fixed amount every month. These loans allow you to have the entire amount at once. Some banks also have no pre-payment or origination fees, making this the ideal option.
- Credit unions– Credit unions process loans similar to banks and follow a similar repayment plan as well. The only difference is that you will be required to register for a membership with a credit union to be eligible for a loan.
- Online options– A variety of options like crowdfunding, sponsorships from Small Business Administration, and traditional loans are now available for women seeking small business loans. However, it is important to do a thorough research about the online lender before taking a loan.
Which are the top small business grants for women?
- Grants.gov– This a database of multiple federally sponsored grants, and it also includes grants for small businesses. To be eligible, you must apply on the website with a unique data universal numbering system (DUNS) number for your business. You can also check eligibility from the terms and conditions mentioned on the website.
- Small Business Development Centers– There are multiple Small Business Development Centers at universities and colleges all over the country. They offer one-to-one consulting, ideas on marketing and financing, and tips on business development.
- Amber Grant– The Amber Grant Foundation offers an award of $500 to a woman-owned business every month. At the end of the year, one of the 12 award winners is awarded another prize of approximately $2,500. The winner is chosen by the foundation’s advisory board based on passion and willing for growth. The application fee is about $7 for every business.