A lot of work still needs to be done in order for women entrepreneurs to access the funding they need. That’s why it is important to understand every financing option available. From loans from traditional banks and credit unions to crowdfunding and grants, there are plenty of ways for female business owners to secure the funds they need.
In the United States, women-led businesses generate $1.8 trillion in revenue and employ 9.2 million people. That’s why it is imperative that these women have access to the capital they need in order to grow their companies and create more jobs. Unfortunately, the lending process is too often biased against women and holds them back from growing their businesses. While there are many valid reasons why lenders might reject a woman’s business loan application, such as an underdeveloped business proposal or poor credit history, the fact of the matter is that gender has a significant impact on whether a business is approved for a loan and the amount of money it gets.
The good news is that there are a growing number of resources designed to help female business owners get the financing they need, including Small Business Administration (SBA) loans, online term loans and credit lines and funding options like invoice financing. Additionally, many women’s business organizations have established grant programs that can provide financial support without requiring repayment or providing interest rates. Some of these programs include the Women’s Business Center, WomensNet and the Accion Opportunity Fund resource library. women in business loans