While larger companies that have been operating for several years can rely on revenue to reinvest in their business, start-ups need fresh funding to cover expenses like furniture, equipment and inventory. The good news is that there are plenty of startup business loans for women available to help them get the capital they need.
The most common option is to seek financing from a bank or other financial institution. The amount you can borrow depends on the lending institution’s guidelines, and you may have to secure the loan with personal assets. Additionally, you’ll likely be required to sign a personal guarantee.
One alternative to traditional banks is to use online marketplaces that connect borrowers with community development finance institutions (CDFIs). These lenders are often more flexible than conventional lenders in terms of credit requirements and offer lower interest rates. They also focus on borrowers who need more than just money, such as those running social impact or disadvantaged businesses.
Another option is to apply for a small business grant. These funds don’t have to be repaid, but they’re typically competitive and can take a long time to process. The SBA’s Women’s Business Centers (WBC) administer a variety of grants, which can range from mentoring to training to funding. For example, the clothing company Eileen Fisher awards $100,000 to 10 women-owned businesses annually that manage 501c3 non-profit organizations with revenues under $1 million and a focus on environmental or social change. startup business loans for women