Image Source

of building an empire? Millennials aspire to become entrepreneurs with a desire to create their legacy. As exciting as running a business sounds, it is not a straightforward journey. Business owners come across a plethora of challenges and complex situations every day. From conducting market research, hiring competent people, to managing business finances – running a company is no fun and games. Surprisingly, everything gets tougher if a woman is trying to run the show.

In this modern era, gender discrimination is slacking off, but that doesn’t mean women don’t have to struggle when running a business. Whether it is recruiting people or acquiring a loan, people consider women as less competent individuals despite their capabilities. Some investors think they are incapable of making decisions as they are more empathic. Others believe they already have a lot on their plate – family, raising children, household chores, etc.

Fortunately, the women of the 21st century are not backing off. Despite a saturated entrepreneurial field, they have stormed it with a bang – thanks to business loans for women. Alongside the government, many private companies are offering loans to women, supporting their business. Are you facing any cash flow problems in the place? Have a look below to get your hands-on small business loans.

  1. Invoice Financing

Is your business running on credit sales? Cash flow problems are usual in such enterprises as customers take over 30 days to clear outstanding bills. If you are skeptical about loan repayments, opt for invoice financing to get cash upfront. You can get 80%-90% advance on unpaid invoices with some standard fees, but the factoring charges vary. Hence, look for reliable companies like fast capital 360 loans to get a low factoring rate between 1%-3% on the total invoice amount.

Moreover, feel free to ask about any additional requirements or discounts for women. They might offer to deal with your clients directly, which means that clients will directly send cheques to the financing company instead of paying you. It reduces the business’s involvement, allowing you to spend time on other crucial tasks.

  1. Micro-Loans

Sometimes, companies don’t need heaps of money, but some extra cash to foot everyday bills. Microloans are particularly for small businesses that are earning less than $500,000 in sales annually. If your business fits in this category, start looking for non-profit organizations or financial institutes offering loans. Some lenders offer discounted interest rates for women entrepreneurs, meaning you can get a loan at a 2% interest rate

Alongside this, these loans are relatively transparent and quicker than getting a traditional bank loan. However, you can’t get this loan to finance equipment or open a new branch as the borrowing amount is limited. The microloans range from $5000 to $80000, and you have to repay within 2-5 years. Flexible payments and short tenure ensure that women entrepreneurs don’t drown themselves in debt and make their business flourish.

  1. Online Loans

No matter how fantastic your business plan is or how upscale your forecast seems, banks are picky lenders. They have old school beliefs, making it pretty arduous for women to acquire funding. Hence, if you were thinking of a bank loan, cancel it from your list and look out for online loans. It helps you skip the hassle of visiting different banks and repeating your pitch again and again. Today, there is a wide array of online lenders providing funds, especially to women.

You have to fill an online application, provide all necessary documents, and list your borrowing amount. If everything goes smoothly, you can get funds within 5-10 days. Do you know the best part? None of the online lenders ask for collateral, which means you have nothing to lose.

  1. Government Guaranteed Loans

The small business administration – SBA is a government agency, enabling banks to offer low-rate loans to small businesses. The SBA is sponsoring women’s business centers – WBC to support women in growing their businesses. Although SBA is not a direct lender, it promises 85% of the principal amount through certified lenders.

Business Women can get up to $5 million in financing for multiple business purposes. You can launch a new product, expand your business, buy another company, or resolve working capital issues. It offers the lowest possible interest rates with long-repayment periods. Thus, easing off the burden from shoulders while giving sufficient time to sort out things.

  1. Peer-to-Peer Lending

Crowdfunding and Funding Circle have given many businesses a chance to rise and shine. When it comes to businesswomen, these forums are offering resources for women’s business funding. If you are in place for more than two years, peer-to-peer lending can do wonders for you. You will come across fellow businesswomen who would be more than happy to support your company.

Similarly, you might also meet venture capitalists who are willing to invest in your business in return for some share in ownership. It will eliminate interests and repayments while giving you additional capital. Moreover, the upfront costs are minimal, so make sure to give this a shot.

Final Thoughts:

Women encounter more significant challenges and hurdles on their road to success, but it is all worth it in the end. Running a business is nothing like a walk in the garden, especially when you need financing. Despite an entrepreneurial spirit, you still have to struggle to finance your company, but don’t let this stop you. Acquire loans, accomplish goals, and let your success make all the noise.