Business finance for women

Women entrepreneurs have been given priority in many countries by the government and this is the reason why special programs have been made for assisting them financially. Business finance for women is available in an easy manner and at attractive terms and conditions. Businesses owned and operated by women have been increasing at good pace in past few years and this aspect has been fully understood by the business finance lenders.


There are many types of credit facilities available for women for business setup, expansion, operation etc. For example, micro loans are offered in good numbers to women entrepreneurs. SBA or Small Business Administration has come up with these loans that aim to help women in their struggling times. Similarly, banks are assisting women in some ways so far as business finance is concerned. Factoring or receivable financing, lines of credit, bank loans that include term loans and short term loans etc are some of common facilities availed by the women. For obtaining working capital finance for the smooth running of business, women entrepreneurs can also use their commercial real estate or equity built. These are kept as collateral and required amount is financed accordingly.


How To Proceed


For getting business finance for women, steps should be taken in a systematic manner so that there are no application denials or unnecessary delays. Like other businesspersons, women entrepreneurs should ensure that their business credit scores are proper. These scores can be checked out with credit rating agencies. Business credit scores play important role in business finance. Though some relaxations are there for women, lenders do like to make advances to women entrepreneurs and businesspersons that have acceptable scores. At this juncture, it should be clearly understood that person credit scores and business credit scores are altogether different. These should never be considered as one for any purpose. Whenever any person applies for a commercial or a business loan, business credit scores are used and there is no reference to personal credit scores.


Grants For Women


Among different types of financial assistances, grants occupy an important place. There are some financial funds running that offer grants to women entrepreneurs. These funds are basically not for profit foundations. Financial assistance is offered to women for starting new businesses or for the expansion. For example, is one online center providing grants to women business person. Exact type and amount of grant may differ from one state to another.


Women can easily know about the type of grant available. Some diverse groups have been given special attention for providing grants. For example, Native American and African American ethnic groups are given priority for offering grants. Similarly, veterans and single mothers are also given priority in providing business grants. Other group that can receive business grant comprises immigrants and disabled women entrepreneurs. Grants are considered as very important. In United States, venture capital funds and other financial institutions like banks are offering a small proportion of their overall business funding. Sometimes, finance required by the women entrepreneurs is small and banks are found reluctant in offering same. In such circumstances, grants are left as only alternative.


New business grants offered to women can start from $100. These are generally offered for the maximum amount of $5000. Similarly, women businesspersons with existing business can get grants from $1000. For being eligible for grant, a woman must be a resident of United States and must have attainted an age of 18 years.


Other Aspects


By giving priority to women in financing business activities, governments are reiterating that they are fully committed to help women entrepreneurs in establishing new businesses and in expansion of existing business. Up to some years back, women were not given so much priority and this is the reason why they remained underdeveloped. Now, women businesspersons are making their mark in the business community across the globe. Thanks to business finance for women and initiatives taken by the governments, women have proved themselves as business entrepreneurs. Flexible terms and conditions offered in business loans have helped them to manage their business more effectively. Contribution of women in gross domestic product is increasing continuously.


SBA has played commendable role in U.S for the development of women entrepreneurs in U.S. They are now more confident and adequately placed in the business community. Most of their financing needs are fulfilled through participation of SBA with different types of lending institutions that include banks also. Procedures have been made simple so that there are no bottlenecks faced by women. Each year, target for business finance for women is increased with a view to get more participation of women in business activities and gross domestic product.


Like SBA in United States, in Small Business Finance UK is one organization that is fully committed for helping women businesspersons. There are different types of business loans to choose from. All these are offered at easy terms and conditions and are meant for establishing new business unit as well as for the expansion of existing ones.


Assistance for working capital to women is offered mostly in the form of equity or debt financing. In fact, there are some lenders that have created special funds for providing business finance to women. Merchant account financing is a facility that is offered to women entrepreneurs on regular basis for fulfilling the gap between current assets and liabilities.


Some sources have come up with business search engines. These provide with information about plenty of sources that are engaged in providing business finance to women. Services are offered free of cost. In reports offered, lenders have been categorized in different sections on the basis of types of business loans offered by them.


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