Starting and running a successful business is challenging no matter who you are. However, if you’re a female entrepreneur, you may find that you face additional difficulties when compared to your male counterparts.
Although the number of women-owned businesses has drastically increased in recent years, female business owners are often shut out when it comes to accessing the capital they need.
While venture capitalists give out billions in funding each year, according to Forbes, businesses run exclusively by female founders generally receive only 2% of these funds.
A survey by HSBC also found that more than one-third of women face gender bias when seeking funding for their business. In addition, the average-sized loan for women-owned businesses was approximately 31% less than the amount received by male business owners.
The good news is, there are some excellent funding opportunities for women business owners. Here’s a closer look at a few of the most popular options.
SBA Loans
The Small Business Administration (SBA) offers several different loan programs designed specifically for female business owners. SBA loans are popular because they typically offer flexible terms and low interest rates.
While this is an excellent option for many women-owned businesses, it’s not right for everyone. Qualifying for SBA loans can be a challenge. The process of securing financing takes time, which is a major drawback when you need funding fast. In addition, SBA loans usually require you to put up collateral or make a personal guarantee. This means that if your business doesn’t succeed, you could lose your personal assets as well.
Regional Female-Centered Groups
Depending on your location, you may be able to obtain a women-owned business loan through a local group. Many states have organizations that are specifically dedicated to supporting women-owned businesses.
A simple Google search should quickly show you whether any of these programs are available where you live. Since these loans are designed exclusively for female entrepreneurs, you won’t have to worry about dealing with gender bias.
Before moving forward with your loan application, you’ll want to review the details carefully. In many cases, these types of loans require borrowers to submit a significant amount of documentation. Some borrows also find that the maximum available loan amount isn’t enough to meet their needs.
Grants
It’s definitely worth your time to find out whether you may qualify for a women-owned business grant. These funding options, which you don’t have to repay, are offered by a variety of lenders. This includes national, state, and local government as well as private companies that have acknowledged the disadvantages women business owners face and want to level the playing field.
Some of the most popular grants for women-owned businesses include The Eileen-Fisher Women-Owned Business Grant, FedEx Small Business Grant, Visa’s She’s Next Program, and the IFundWomen Universal Grant Program.
While the idea of “free money” is certainly appealing, a grant isn’t usually an option for immediate business funding needs. It’s a time-consuming process and since you’ll be competing against many other women business owners, it’s also very difficult to qualify. If you receive a grant, it will typically also come with restrictions regarding how you can use the money.
Term Loans
Seeking a term loan from an unbiased lender, like Zinch, is often the fastest and easiest way for women-owned businesses to obtain funding. All you need to do is complete a simple application. As long you’ve been in business for at least six months and you receive a minimum of $10,000 in monthly deposits, you will qualify.
Our term loans offer many benefits including flexible loan terms of three to 12 months, fixed payments, and a hassle-free repayment plan. Even better, you can expect to receive your approval within 24 hours and have the money in your bank account in just two to three days.
Merchant Cash Advance
If your business processes a significant number of credit or debit card transactions, a merchant cash advance may be an excellent option for you.
This funding solution is more flexible than a traditional loan. It’s based on your business sales instead of your personal credit, making it the ideal solution for business owners with credit challenges.
You also won’t have to worry about having enough cash flow to cover a fixed repayment amount. Your payment is based on a percentage of your credit or debit card sales. If your revenues go down, your required payment amount will go down as well.
Explore Women-Owned Business Loans Today!
At Zinch, we support all business owners with fast and convenient lending options. You can count on us to provide fair and transparent funding for your woman-owned business.
Contact us today at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours!
