Starting and running a business successfully requires grit, determination, confidence, skill, and of course, money, even when it comes to how to start a dog-walking business. It can get relatively harder for women in business, considering the challenges the society throws at them. Despite the several difficulties faced by female entrepreneurs, studies have revealed that businesses run by women account for 39% of all U.S. companies, employing over 9 million people and generating more than $1.7 trillion in revenue yearly.
Small Business Loans available to women entrepreneurs
Loans from the Small Business Administration (SBA)
The Small Business Administration, popularly known as the SBA offers a several small business loans for women. The loans are made available to businesses that do not qualify for other forms of funding or businesses that cannot afford the relatively high cost of borrowing associated with other funding options.
Loans from a Local Female-centered Group
Many states have local groups that are dedicated to supporting women-owned businesses. Such programs enable businesses to secure between $250 and $25,000 or even as much as $50,000 in financing for businesses that have been open for a minimum of 18 months.
Loans from local female-centered groups can be used for several purposes, including acquiring assets, office or store improvements, and covering operating expenses. Such loans cannot be used to refinance unrelated debts, pay back taxes, buy real estate, or consolidate loans.
Loans from Traditional Banking Institutions
Women often find it more difficult to secure loans from traditional financial institutions. It gets even worse as most small business owners spend a lot of time on paperwork only to get rejected eventually.
Peer-to-peer Business Loans
P2P lenders act as a bridge between small business owners who need money and banks and investors who are willing to lend it. P2P loans tend to be flexible by design, allowing businesses to get between $2,000 and $1 million in financing.
Some other popular small business financing tools that resourceful women use include Bootstrapping, Business Lines of Credit, Crowdfunding, and Merchant Cash Advance.