Women are driving business growth in the United States, owning more than 11.6 million businesses that generate trillions of dollars. Yet, they face unique challenges when it comes to obtaining financing. They are less likely to receive venture capital funding and they get approved for smaller loan amounts than their male counterparts.
Fortunately, more organizations are offering business financing options to support women entrepreneurs. These include alternative lenders that are not constrained by the same credit requirements as traditional banks. Also, many women can find financing through business credit cards, which are easy to qualify for and help build business credit. Other financing solutions for women include merchant cash advances and invoice factoring. Invoice factoring, which involves selling outstanding invoices to a third party for immediate cash, can be a good option for women who struggle with a poor credit score and need fast access to funds.
Aside from securing a loan, women can also seek out government or organizational grants. These are financial support instruments that do not require repayment and can be used to boost business growth. Many of these grants are offered to minority entrepreneurs and women, but they can be a challenging source of financing to secure because competition is stiff.
The key to getting loans for business women is being clear about how you will use the money and demonstrating your ability to repay the loan. Having a business plan with revenue projections and other financial indicators will be helpful to your case. You should also be prepared to answer questions about your company history, your current debt and the state of your business. small business loans for women owned businesses