Currently women businesses are the fastest growing segment in the US. As per the recent research performed by Kauffman, 40% of new entrepreneurs in the US are now women. They are growing their businesses at double the rate of their male counterparts.
However according to US Senate, it is still a problem for women business owners to get funding for their business. Women alone own almost 11.3 million of the businesses in the US. There are no business funding program specifically for women business owners. However since the alternative lending has grown, they have come up with funding programs that are specially intended for women business owners. Alternative lenders offer women business owners’ easy access to funds at flexible rates and terms. They have less stringent requirements as compared to banks.
Business Loans for Women from Alternative Lenders
Here are some of the alternative business funding programs for women-owned businesses;
- Business Loan for Women
This program is specifically made for women-owned businesses. It can be quite difficult for women business owners to get funding for their startup businesses. Alternative lenders offer business loans for women after evaluating your financial situation. This funding program helps women business owners to pursue their dream of owning their own business.
- SBA Loans
As the Small Business Administration has a policy of expanding capital to women-owned businesses, an SBA loan is the best funding program. As with any other SBA loan, the SBA only provide guarantee on the funding amount to the bank. The only downside of that type of loan is they come with hefty paperwork and involves a long-drawn-out funding process that can be nerve-wracking.
- Business Line of Credit
Business line of credit is another alternative funding program for women-owned businesses. It is basically an arrangement with the lender that offer a maximum funding amount that the lender allow to borrow. You can draw your line of credit whenever you like given that you are not exceeding your set limit. So basically a business line of credit is like you need it, and you draw and use it. The repayment process is quite simple. You need to make payments on as set in your arrangement.
- Short-Term Business Loan
These loans are specially made to meet the financing requirement of small businesses, helping businesses to fill the cash flow gaps, meet the unexpected expenses and get new business opportunities. Rather than disturbing your cash flow by pulling capital from it, you can use short-term business loan. Women business owners can use the short-term business loan to fund their business’ needs.
- Working Capital Loan
Another funding option for women-owned businesses is working capital loan. Women-owned businesses can use this type of funding to help strengthen their cash flow. This loan will help you to cover your daily operations without disturbing your overall cash flow.
- Minority Business Loans
Women businesses are also classified as minority-owned businesses. Minority business loans are specifically intended to help minorities and women-owned businesses. This funding program provide an opportunity for businesses to get the required funding to grow their businesses.
When it comes to business financing options, women-owned businesses are no longer deprived. If you are a women-owned business and in need of funding, to start a new project, fund the existing business and to buy inventory for your retail store, the above mentioned alternative funding programs can help. It is advised to do your research work first when opting for one.