Our goal at Lending Valley is to provide all small business owners access to the best loans possible for their business. You can rest assured we will get you the best rates in the market!
Historically overlooked, female business owners are one of the fastest growing markets in the entrepreneur arena. Thanks to recent social movements, women are finding business grants and loans easier to secure, but no small business loan is ever “easy” to acquire.
You need a solid business plan, an established credit history, healthy projections for a return on investment (ROI), and proof that you can pay back the money borrowed. Below, we have tried to provide overall coverage on loans women business owners are most likely to need and what can be done to get them.
We will touch on business plans, establishing credit for your business, and also provide links to more replete sources you can reference in addition to sites that provide loans directly. You will get the best deals at the Lending Valley.
While you may be able to finance your business on your own or through private investors you already know (such as friends and family members), a small business loan increases your budget, builds your company’s credit, improves your cash flow, and proves to others that your company is creditworthy and can be profitable.
These others include future potential financiers, but also businesses that extend credit themselves, such as manufacturers and service providers. It is for these reasons that it is often said that, “Those who take out business loans do not need them.”
Of course, that is a gross over-generalization, but the point remains: A business loan should be part of a larger, comprehensive, financial strategy and is not always specifically about securing funding. Covering operating costs is a good example of why you might seek a loan.
Operating costs often consume any profits a small business generates — especially new businesses — and is one of the most common reasons entrepreneurs seek financing. Payroll, inventory, maintenance, and rent are some of these ongoing costs. Small business loan by lending valley for women is best among all other available options.
A loan might be used to cover these expenses, or it might be used to upgrade, expand, or strengthen your core business. You might also consider a loan in anticipation of business growth or contraction, or to build a credit history.
Some types of business loans include revolving credit, short-term, peer-to-peer (direct investor), and microloans. Since these loans are described in more detail on the sites below and those definitions are not necessarily uniform, we have only provided a short description of each. Instead, we are going to provide as much information as we can on where to find business loans for women, and how to strengthen your chances of securing them.
Finally, just because you qualify for a loan does not mean it is right for you. There are many reasons to get a business loan but there is no reason to get one that will only be a financial burden.
If you are seeking a loan to launch your business, you absolutely need a professional business plan; few (if any) investors will consider funding a business without a written business plan.
There are many types of loans but these are the loans you are most likely to need or most likely to qualify for:
If you have never written one, there are numerous online resources that can help you, but investing in a professional might be your best option. This is especially true when dealing with governmental agencies.
Your business plan should include every detail you can think of, from a description of the manufacturing process or services you offer to the details of everyday operations. This includes finances, PR and marketing strategies, targeted demographics (audience or customer base), competition, and more.
DreamBuilder (dreambuilder.bluedrop.io) is a website designed to teach women how to write their own business plans and comes highly recommended by the SBA. Because your business plan is the blueprint for your operations which will be referenced by everyone from potential investors to financial institutions to employees, a professional consultant is still suggested.
If you are just launching your business or have not been in business long, you probably do not have an established credit history. In these cases, investors usually look at your personal finances. After all, they want to be sure you can pay back any money they might loan you.
Be sure to highlight any points that elevate your worth on paper, such as a high credit score or past loans you have already paid off, but do not falsify or exaggerate information. Be prepared to answer any and all questions anyone might have. Do check out Small business loan by lending valley option.
A lot of small business owners start out at their own expense, often by financing their business through personal credit cards. Whenever possible, try applying for a dedicated business credit card as soon as possible, even if you are working under a DBA.
While this provides (very) limited liability, the more important goal is establishing a credit history for your company. This history is important to potential investors and financiers.
Credit cards are known as revolving credit lines as you are expected to repeatedly borrow small amounts over a long period of time up to an allowed limit. The longer, and better, your credit history, the lower the interest rate and the higher your limit.
Be sure to keep close tabs on your credit card spending, as carrying large amounts of debt lowers your FICO score. It is best to set an autopay option either through your credit card company or bank so that your payments remain current.
The Office of Women’s Business Ownership (OWBO) from the SBA is a multi-pronged approach to assisting female-lead businesses. The Small Business Administration is well known for the help it provides small business owners but its OWBO initiative is a relatively new branch which includes the InnovateHER Challenge and Women Owned Small Business (WOSB) Federal Contracting Program.
The SBA is known for providing microloans – small loans that are easy to pay back. These are ideal for starting new businesses, especially if you have a strong (personal) credit history. They are also great for established companies. The average microloan is just under $15,000.
Regardless of how you intend to approach your business and finances, the OWBO (and SBA, in general) is a great place to start. You can use this tool to find a local office or visit SBA.gov to learn more.
Kabbage is dedicated to providing loans to female-run small businesses. They offer a broad line of services and fast decisions but require a business plan which specifically addresses paying back the money you plan to borrow. Founded in 2011, Kabbage.com is TRUSTe certified and has loaned some $7bn to female businesses since its inception.
PayPal offers small business loans from $5,000 to be repaid weekly within a maximum of one year. These extremely short-term microloans might work for certain businesses or needs.
These loans are more politically motivated than others: They are specifically offered to disadvantaged areas for the purposes of improving the surrounding community.
You qualify if your company is involved in anything like providing low-income housing or education but, if you can show that your business will provide jobs to community residents and/or attract more businesses, you might have a shot.
Community development loans are usually coupled with tax incentives that promote industrial and cultural growth in the area. These are not only offered by the government; private organizations also sponsor financial aid for community development.
Bookstores, museums, and businesses involving goods and products somehow related to public services might be candidates for these loans. Get in touch with us for any assistance related to Small business loan by lending valley for women.
Unlike loans, grants do not have to be paid back. For this reason, securing them can be more difficult due to increased competition. There are several programs that can help you find grants for your company based on a number of criteria. The WomanOwned Grant and Funding Database is a great place to start.
Due to their competitive nature, successful grant proposals — like business plans — often require a professional’s touch. Luckily, most proposals are similar so, once you have a professionally written grant proposal, you can probably modify it on your own to submit to other programs.
Crowdfunding is a recent addition to fundraising, but it has helped many businesses get off the ground and introduced thousands of new products to the market. There are several websites you can use but they all require a fee.
Crowdfunding is similar to grants in that you do not have to pay back the money you raise. However, you generally have to provide a product in return for the donations you raise.
These products can be “unlocked” at higher donation amounts, or tiers, and many crowdfunders offer an array of goods and services related to their products to entice visitors to donate more.
For example, your business may be a magazine dedicated to movies, but you can offer T-shirts at higher donation tiers (even though you do not normally sell clothing).
You might even find a demand for goods that prompt you to expand your business into areas you had not previously considered.
Business associations that do not provide loans directly have a lot to offer both new and existing business owners, and the work they do can affect who is allowed to provide loans, the types of loans you qualify for, how much you can borrow, and more. Membership in these types of organizations boosts your business’ profile, improves your professional visibility, and looks good to investors. Remember that they are not only investing in your business, they are investing in you.
The National Women’s Business Council (NWBC.gov) does not offer loans directly but is a very active governmental association representing and supporting women in business. It boasts a free newsletter, tons of useful research and data that helps in writing business plans and grants proposals, and much more.
Women Impacting Public Policy, or WIPP (WIPP.org) is another such coalition. While WIPP offers a lot of solid business advice and solutions, it is designed to help impact how businesses owned and operated by women – particularly small, women-owned businesses – is handled at the governmental level.
Even if you are not interested in politics, it helps to follow developments and action items highlighted by organizations like the NWBC and WIPP, as they are likely to affect you directly. It can also give you a competitive advantage, so be sure to sign-up for their newsletters and check their websites regularly.
An often overlooked chance to gain a competitive edge, secure financing, and improve your business, educational opportunities abound these days – especially online.
No longer do you need to travel or work around someone else’s schedule in order to further your education; there are many online courses and dedicated business schools. You can even earn your MBA online!
Do not discount courses tangentially related to your market either, such as Economics, Business Writing, Social Media Marketing, and others. Depending on your niche, classes on Design, Cultural Diplomacy, History, Philosophy, and more might be appropriate.
By becoming an expert in your industry, you not only improve your company, you can also provide help to others. You might be invited to speak at major conferences or for important organizations; write for magazines, newsletters, or websites; or chair a local council or chapter of a larger organization.
Obviously, these are honors in and of themselves, but they also look great on your resume and a loan or grant proposal. You might even find yourself in a position which allows you to make great changes that affect not only your own company but others like it.
It is beyond the scope of this article to provide a full listing of courses and websites offering them, but some of the more recognized sites include Coursera (Coursera,org), FutureLearn, and Udacity. Just to illustrate the point, here is a list of 50 marketing courses you can take right now.
Newsletters and periodical subscriptions are two more ways you can stay ahead of the curve and learn more about your industry, market, and target demographics. There are countless trade publications you can subscribe to for free. If you choose to pay for a subscription service, you can write it off on your taxes as a business expense.
No matter what type of business you run, there is a direct mail newsletter, online newsletter, group or association, or trade publication dedicated to one or more aspects of it. Trying to stay abreast of your industry can be time-consuming, but it is also a big part of your job which ensures you stay competitive.
The important thing is to always make good use of your time. Furthering your education and following trade publications is a great way to do just that.
Sadly, we would be remiss if we did not mention that there are also a lot of scams out there that promise a lot but deliver nothing. While many people are naturally suspicious of “hard sell” promotions and Internet sites they have never heard of, con artists are very good at what they do and are always finding new and innovative ways to fool their victims.
If you are ever uncertain about a business, individual, or organization, check the FBI’s website (FBI.gov) and the FTC’s site (FTC.gov) to learn more.
Never send money to anyone who claims that they can help you find an investor before checking them out thoroughly, both online and through any contacts you have offline.
You can also check with your local Chamber of Commerce, the US Women’s Chamber of Commerce (USWCC.gov), and police department. Most legitimate “member” sites offer a free trial period and your credit card company also maintains a list of known predators.
Remember the old adage: If it sounds too good to be true, it probably is!
Although women business owners have historically been under-represented in the entrepreneurship field, that is beginning to change. Today, there are more options and opportunities for women entrepreneurs than ever before. We touched upon several small business loans for women and grants programs, but we are certain to have missed a few and, hopefully, there will be even more by the time you read this article!
