Never before in history have so many women entrepreneurs launched businesses, putting the problem of access to capital for women business owners squarely into the spotlight. Platform lenders that offer online small business loans for women are stepping up to fill the gap, giving women business owners access to the money they need to grow their companies more quickly.
There are many theories as to why women owned businesses receive less funding than those owned by men, from overt or subtle discrimination to the idea that women are simply not communicating effectively with the (mostly male) decision-makers who fund startups or provide business loans. Whatever the reason, statistics show that 54 percent of women owned businesses are funded by personal savings vs. just 32 percent of male owned enterprises, and there are four times as many as male-owned than women-owned venture-capitalist funded businesses.
Whatever the cause, lack of access to capital presents a serious problem for female entrepreneurs. Online business loans for women make it easy for women to apply for financing online, get instant answers, and get instant access to working capital on approval so they can stay focused on growing their companies.
4 Ways You Can Use an Online Small Business Loan for Women to Grow Your Business
1. Use Online Small Business Loans for Women to Stock Up
Most businesses have an ebb and flow; some businesses have distinct busy seasons. The more inventory your company can build up in advance of the busy season, and the more staff you are able to hire and train, the more you might be able to take advantage of strong demand during the busy season for your business.
2. Use Online Small Business Loans for Women to Spread Out
Sooner or later, every growing business will find that it’s bursting at the seams and lack of office, manufacturing or retail space is standing between the business and future growth. As a female entrepreneur, you can use an online small business loan to finance an addition or lease more square footage at your location.
If lack of adequate space to grow is a problem and additional square footage at your location is not an option, you can even use this type of financing to open up a second, third or addition location. Plus, having a line of working capital available to your business could allow you to test market pop-up stores in several locations before committing to those which promise to help you grow most quickly.
3. Use Online Small Business Loans for Women to Stake Your Claim
Few things in business are more frustrating than when you can’t take advantage of emerging opportunities. For instance, a competitor might be going out of business but without working capital, you can’t buy them out and invite their customers to transfer patronage to your business instead. The financing provided by online business loans, which can be approved and funded in a very short period of time, can make or break your company’s ability to stake your claim when emerging opportunities present themselves and you only have a short window of time in which to act.
4. Use Online Small Business Loans for Women to Spread the Word
Marketing and advertising is another area where having a reserve of working capital could help you grow your business more quickly. If you have been waiting to build out a website with online sales or booking capability because of lack of funds, an online business loan for women could be an ideal solution. Not only can this type of financing pay for the marketing and advertising campaigns you have always dreamed of running for your business, the growth in sales and additional revenue can help you pay off the financing, so that your company’s cash flow is not negatively affected in the process.
Growth initiatives are an ideal way to take full advantage of the working capital you could unlock with small business financing. Instead of waiting for cash reserves to build up or watching opportunities to grow your business pass by, remember that there are financing companies who make it possible for you to move forward with the plans and dreams you have for your business now.