In an article written by the ‘National Association of Women Business owners’ statistics (NAWBO).
mentioned that “the National Association of Women Business Owners says that there are 11.6 million women-owned businesses in the U.S. employing 9 million people and generating close to $1.7 million in revenue.”While it is easier nowadays for female entrepreneurs to own and manage businesses, it still remains a big challenge for them to get approved for business loans, particularly funding for startups.
A startup loan is a type of financing that aims to provide capital for new businesses with little to no credit history.Most banks and traditional lenders do not offer financing help to new companies as they are considered high-risk borrowers. To put it simply, new businesses don’t have any track record yet to show that they have the capacity to generate enough money to pay back the loan. They lack a lot of things – lack of management, lack of business credit history, lack of experience, lack of customer base.So, imagine how difficult it is for female entrepreneurs to get a business startup loan from traditional lenders who have prejudice over women-owned companies.
While it seems that many traditional lenders still consider lending money to female entrepreneurs as riskier as compared to granting funds to businessmen, more and more alternative financing options are now on the rise to rescue these women-owned companies.
Even female entrepreneurs with bad credit history may still be granted business startup loans since these alternative business lenders do not largely focus on credit score. They also consider other factors in determining eligibility.
To apply for business startup loans with quick and high approval rate, the best option would be online lenders as they require less strict requirements. Let’s focus some of there commended lenders of this reliable site for business loans.
They do not require any minimum credit score for their borrowers. Their online small business loan application can be completed in 15 minutes. They do not ask for any fee and once the loan is approved, borrowers can access their capital within 24 hours.
They do not require any collateral and there are no hidden fees. They also have a personalized approach to their applicants’ funding needs as they assign a dedicated loan specialist for every potential borrower.
They have an A+ rating from the Business Better Bureau and they offer flexibility in funds. It means borrowers are allowed to use their money (from their loan) for any business purpose.
Founded in 2010, Credibly’s goal was to improve the cost, speed, choice, and experience of capital to businesses across the United States. Today, they provide access to more than $1B to more than 19,000 small businesses across the United States.
Other possible sources of funds for startups with no credit check include crowdfunding, business credit cards, microloans and nonprofits, and small business grants. Read here for more details.
If you are a female entrepreneur who is considering applying for a business startup loan, make sure that you know and understand first what your business exactly needs. This will help you determine the right loan amount you need. You must have a business plan so you can figure out the exact estimate of the funds you’ll be needing to jump start your business.
Next, do your own research of the various startup companies that offer the business loan products and services you need.
Third, check out several potential lenders in your area. It would be a smart move for new entrepreneurs to make a comparison first of the terms, products, and services the lenders offer before they make a choice. Remember that if you want to get the best deal, you have to know and understand all of your options.
Lastly, as a responsible borrower, know all the requirements and make sure to accomplish them on time.