Small Business Loans For Women – How Lendio Can Help

Women-owned businesses are leading an exciting shift in the economy. But they still face challenges when it comes to getting business financing. A recent study by credit resource Biz2Credit found that women-owned businesses were 31% less likely to receive business funding, and when they did, their average loan size was 33% smaller than those of men-owned companies. This is a serious problem that can hold back women-led businesses from growing and creating jobs. To address this gap, Lendio has developed a platform that makes it easier for women to get small business loans and other types of business financing. Our online application connects you to a marketplace of lenders, and you can qualify in minutes without having to leave your home or office.

The first step is understanding the types of business financing that are available. There are many different options to choose from, including bank or credit union business loans, online lender financing, and even government-sponsored programs. Each type of business financing has its pros and cons. For instance, a business loan from a bank can help you build your business credit rating, but the application process may be long and frustrating. Other types of financing, such as a business line of credit, allow you to borrow up to a certain limit and pay interest only on the funds you use.

Another option is to find a community-based lender, or CDFI. These lenders specialize in providing funding to underserved communities, which includes women-owned businesses. Some of these lenders offer specific provisions and benefits that make them appealing to female entrepreneurs. One example is TruFund, which offers special terms and conditions for women-led businesses in New York City.

Other sources of business funding include venture capital and angel investors. These are essentially investors who give you money in exchange for a stake in your business. This can be a good option for women-owned businesses that have been in operation for a few years and are ready to grow. However, it is important to remember that you will need to give up some control of your business in order to secure this type of financing.

Finally, there are a number of government-sponsored loan programs for women business owners. The Small Business Administration (SBA) offers several different loan programs, including the 7(a) and Express loan programs, which are ideal for women who need to finance large purchases like a point-of-sale system or commercial equipment. Depending on the type of financing you need, you may need to provide collateral or agree to a personal guarantee. Be sure to research all of your options when seeking business financing for women. You may be surprised to find that the funding you need is much closer than you think. Getting the business funding you need to grow your company is within reach, but it will take time and persistence to navigate the process. With a little research, you can quickly identify the business loans for women that best meet your needs.

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