The contributions of women-owned businesses to the economy are significant, yet securing financing is one of the biggest hurdles many female entrepreneurs face. Having access to capital allows entrepreneurs to invest in marketing, research new business ideas, hire talent and much more. However, when it comes to securing funding, a variety of factors can hold female entrepreneurs back, including discrimination, lack of mentorship and heightened familial responsibilities.
When pursuing small business loans, it’s important to evaluate all the options available. Different lenders offer different terms and conditions, loan programs and eligibility requirements. For example, an online lender may offer a more streamlined application process and lenient qualification standards than a bank or credit union. They also may not have the same fees associated with the financing process.
Additionally, what’s considered a small business varies by industry. A company that employs more than a few hundred people in several locations might be considered larger by some lenders than a sole proprietorship or partnership with comparable profits and revenue. The legal structure of a business can also influence perceptions of size, as some companies are legally defined as corporations while others are structured as partnerships or sole proprietorships.
Another option for entrepreneurs looking to secure small business loans is to seek out a lender that specializes in women-owned businesses or offers specific loan programs for women. These types of lenders can often provide a more flexible qualification criteria, more competitive interest rates and repayment terms and may offer other benefits, such as specialized business credit cards. small business loans for minority women
