subject: Financing Options For Women Entrepreneurs [print this page] The number of women entrepreneur has been increased drastically. Such figures can boost the growth of any economy. Furthermore, their contribution is also accelerating the growth of business, finance, and many other industries. However, whether the business is owned by a man or woman, the foremost requirement to run a business is capital which is said to be the life blood of any business. So, if as a business woman your plan is to start, buy, expand, or grow a business then your business will have to be supported by sufficient amount of funds. However, "small business loans for women" there are multiple things those need to be taken care of while the process of loans.
Sources of Financing: Banks can be the most popular sources of financing however, banks at times become rigid to lend money. This inflexibility is not only for women entrepreneur but also for the businesses owned by men. Yet, there are many other options the women entrepreneurs can opt capital from like financial institutions, private lenders, credit union, venture capitalists etc.
Types of Financing: Types of obtaining capital is as similar for women entrepreneurs as for men. This includes secured and unsecured loans, line of credit, term loan, working capital loan, venture capital, partnership and so on. All a woman entrepreneur has to do is to make a suitable choice considering the specific requirements of a business. Besides, government has also taken initiative to help women entrepreneurs through grants and financing for minority.
SBA"s Loan program: SBA Loans for women also helps to obtain financial assistance through banks and financial institutions (those have tie-up with SBA). Women"s Business Center (WBCs) and Women-owned Federal Small Business Contract Program (WOSBs) are the programs offered by SBA to full the various needs of businesses.
Different Purposes of Financing: As the financing has a lot of options so is its usage. Since, loan can be used by both start-up and existing business owners. Yet, the purpose varies. It can be to buy or rent property (new office, land, or building), purchase of new machinery and equipment, office expenses, working capital to manage the day-to-day expanses, repayment of debts, employees" salary and so on.
Security: Collateral against loan is the common way to acquire secured loans. However, due to some reason you do not want to keep your fixed assets on risk then you can always opt for unsecured loans. The other reason why entrepreneurs go for unsecured loan is bad credit rate. The rate of interest in unsecured is however higher than secured loans.
Application and Business Plan: There is no such difference in the loan application procedure for women entrepreneurs. The application can be filled and submitted online or in person. Considering the business plan, women entrepreneurs can either make it or take professional help in making or editing a business plan.
by: albert george
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