Where to Get Funding for Small Women Businesses

Business identityDespite the need for skills and determination to start a small business, there is a need for money. Competitive business environment makes it harder. Women being the fair gender face more challenges due to market constraints. Such constraints include limited access to information and bias.

In the U.S women own 39% of all companies. Although the numbers seem good there is the need for improvement towards reducing the gap between male and female-owned businesses.

Five best sources of loans for small women businesses

  • Local female-centered group loans within your region – women-owned businesses have overwhelming support from many states. Information such as cash flow projections, income tax, credit authorization, and financial statements are required. Though the loans might be small depending on location, the most significant advantage is adequate time to pay back.
  • Peer-to-peer business loans. Lending club is among the platforms of peer to peer lending. The lenders act as a connection between investors and clients in need of money. This form of loans has no restrictions regarding spending. The loans have no restrictions on use and are offered in flexible terms. The business though has to meet some revenue score to acquire the loans.
  • Small business administration loans. The loans have meager interest rates and are offered to small businesses whose credit score can’t qualify for other investments. These loans require collateral and a healthy business plan. The most significant disadvantage is the time needed to secure the loan as well as the difficulty in acquiring it.
  • Traditional banking institutions loans. These include banks and insurance agencies. Loans from these institutions have a constant interest rate. Research has shown that banks usually process long for businesses to reduce the motivation for small businesses likely to fail. For this kind of loan, the company must provide collateral such as building, land or vehicles.

The above discussed are the most accessible and reliable channels for women loans to start a business. Other channels include bootstrapping, invoice factoring and selling business equity to potential investors. This help women businesses which don’t have enough revenue or collaterals to secure loans from banks.

Why is it hard for small women businesses to get loans?

  • Small community finance institutions have vanished. More prominent institutions have submerged the smaller community banks. These big banks are not willing to give small loans to these women businesses due to high risks. This hinders the growth of potential companies owned by women.
  • Modern business is more of service provision oriented. These businesses lack the criteria such as collaterals required by banks to give loans.
  • Venture capital is only concerned with companies with relatively high potential to grow.

Women being minority groups face a more significant challenge in acquiring financial support for businesses. The founder of CCVRS, INC., Craig Lambert ascertains that a company can only be successful if there is some risk involved. There is a need to reduce gender biases to secure women loans to start a business venture.

Fresh Ideas for Financial Investments

Fresh ideas on investments should ideally be profitable, risk-free, safer, and a trusted source of continuous income. Many people may advise you to invest in stocks, bonds, shares and other fast money making plans. They are right to a considerable extent. When the market has a bullish condition, your investments can earn you significant profits. When it comes to the recession, there have been many stocks which have sunk. They have never recovered again. So, you must be prudent while making a decision.

Peer-to-Peer Lending – Be a Virtual Banker

Peer-to-peer lending is an investment option in which you can earn part of the interest earned by the company. It is also considered to be an effective alternative to stocks by many of the financial experts in Forbes and other established financial market analyzers.

Trust: lending companies are registered at the federal and state governments and have a license. Any situation of bankruptcy will be handled by the government authorities directly. The company has to return the investors’ money without any excuse or delay.

Stability: Moreover, the company can be expected to be strong and stable (unless the directors choose to shut it down) in the market. It is for the simple reason that they are earning a fortune from the loans they give out. Even in cases of default, they have the collateral security, which they can sell and convert into cash.

Interest: The rate of interest you get could be from 6% and go higher. It is stable and may increase with time. The probability of fall in interest is very low. So, you can expect to get long-term profitability from your investments.

Gold IRA – Preciously Materialistic

If you want your investments to be free from market volatility, the best place to invest in the Gold IRA. Practically speaking, you can’t expect any interests on your investments during the period. In fact, you may have to pay a fee for protecting your precious metal in the custody of the financial institution or bank. It may look like a crazy proposition for some people. But if you plan to treat it as a growing investment which will fetch you post-withdrawal benefits at the time of pension, it could be the most recommended one. It is precious due to the increasing value of gold. You may also invest in silver, platinum, and other metals which are considered to be precious by the investment company.

Currency Market- Stable and Strong

If you are a smart investor, the currency market is one of the most recommended fields. You may trade on USD, Euro or any other global currency in the market. RIAL is the leading currency in the world today. It is also associated with the richest oil-producing nations in the world.

Live Sessions: You can become a trader and take part in the live trading sessions in the stock market. All you need is professional training for a few months. Then you can start dealing with the market on your own.

Stable Income: Currency markets are the stable income sources which are trusted and dependable. You can analyze the market and take the best decision based on the variations.