Business loans for Women- an honest perspective

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Women in business.

A recent study conducted by Dow Jones reveal that there has never been a time like the present which shows a bright promising and successful future for a business that has a woman at the top when compared to one that is led by a man. Several bigwigs of the business world like Pepsi, IBM etc. have highly proficientand competent women at their top who are adept at leading the business with an organised efficiency.

The same story holds true for women owned businesses too. There has been a tremendous increase in the women owned businesses since 2007 as per the statistical records. To avail of the special aids, grants or business loans for women what you need is the tag of women owned business that is conferred by specific organisations in the US and worldwide, upon fulfilling certain criteria.

It is therefore imperative to acquire practical knowledge about business loans for women at this juncture, where women entrepreneurs are immensely contributing to the economic growth.

What do business loans for women refer to?

Business loans for women refer to the loans sanctioned specifically for women owned businesses.

Purpose of the business loans for women

Starting up the business

To seek business advice/consultation

Purchasing new equipment

Purchasing land as part of expansion/improvement

Hiring/Training extra staff

Developing a new product

Energy efficiency

Beginning export ventures

Marketing products

Let us look into the different options that provide business loans for women, depending on the circumstances and requirement. The good news is the options for business loans for women now are no longer limited to banks or government organisations. While shopping for business loans for women, it is vital to analyse and evaluate the true cost of borrowing including the total fee involved and also to compare the annual percentage rate or the APR.

The first option for women owned businesses would be grants provided through various government as well as non-profit organisations including Women’s organisations and also certain private organisations. These cannot be labelled as business loans for women though. Grants differ from the business loans for women in the lack of interest during repayment. But the amount provided in grants might be lesser than in business loans for women.

The second will be banks that provide business loans for women. The first and foremost criterion required to be qualified to secure a loan from a bank will be a good credit history and also security depending on the amount needed.

Then there is a host of online lenders who provide business loans for women. There has been a surge of these lenders since 2008. There are lenders who give specific business loans for women; meaning financing given for specific purposes. For example, in the US, SmartBiz, Lending Club etc. provide business loans for women for the purpose of expansion, while Funding Circle finances women-owned businesses in retail. New women-owned businesses are also catered for by certain lenders like StreetShares that sanction business loans for women for relatively young businesses provided the criteria of a time period of one year and an annual revenue of $25,000 are met with by the business. Business loans for women with poor credit is also made feasible by certain lenders like Kabbage, OnDeck etc. which approve lines of credit based on the information of accounting, e-commerce etc. But understandably this will prove to be costlier than the others.

In certain countries like Australia, there are women-friendly broker services that help with business loans for women. This setup is run exclusively by women and is called Women’s Network Australia. This has a panel of lenders who provide business loans for women, and therefore there is no need to shop around. The brokers explain the terms and help you compare the rates of different lenders thereby simplifying the process and making it a lot easier. The best part is the services are provided for free.

All these positively encourage more and more women to venture into entrepreneurship. And this is definitely good for the economy. Even developing countries have taken the initiative to introduce grants to women-owned businesses and provide business loans for women at low rates. Keeping that in mind, it is very important to create an awareness about the existence of such facilities among women who have inclinations to venture into business and encourage them open-heartedly.

 

Image credit : pixabay.com

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