Women-led businesses face a number of challenges when trying to get business startup loans, including gender bias and the fact that venture capital (VC) investors are less likely to fund female-founded companies. But with the right financing strategy, these business owners can find a wide range of funding opportunities for their startups and small businesses.
One option is to search for a business grant, which can be especially helpful since it doesn’t require you to make repayments. While grants may be more restrictive than business loans, they’re available from a variety of sources, from the federal government to private corporations and community organizations. In addition, there are specific programs for women-owned businesses, such as the Eileen Fisher woman-owned business grant, which awards $100,000 to five to 10 women-led companies each year.
Bank loans are another common way for entrepreneurs to fund their companies. While they typically require personal and business credit scores, a detailed business plan, and other documents, online lenders like Funding Circle can often approve small-business loans for entrepreneurs in just days.
Other financing options include crowdfunding and venture capital, where business owners trade equity in their company for money. But while these can provide quick and easy access to cash, they can also limit how much control a business owner has in the future. Fortunately, other alternatives are available, including angel investments and peer-to-peer lending, which can help with the costs of business startups while allowing for greater flexibility in a company’s growth. business startup loans for women