How to get a small business loan: Tips for women entrepreneurs
How to get a small business loan: Tips for women entrepreneurs
It is no secret that securing a small business loan is an uphill battle. All enterprises that apply, only a handful ever get the money they need from banks and small business lending, to the rest of them to seek alternative sources of capital.
For women entrepreneurs in the business world remains male-dominated, getting a loan can be more difficult. A recent study by the California Reinvestment Coalition found that small business loans forwomen-owned businesses in California have dropped 70 percent since 2007, and it is likely that other States also have seen a drop in small business loans for women. Even when a business owner isfinancially secure, it is more likely that she will be turned away.
"We tried to get a loan from the banks a few ads desire to help small businesses," said Hannah asLavon, co-founder of Hooray Hoopla, the parent company of the retail shop fittings, in comparisonwith the tool. "But we had to be moved because they said that we had been in business for at least five years, even after the show our finances." [How to apply for a small business loan]
BusinessNewsDaily spoke to a number of financial experts and women entrepreneurs, who providethe advice for women-owned small businesses are looking to secure a loan:
Build relationships within the business community
Small business lenders want to know that the companies they are investing in are headed for success.That is why it is very important to establish yourself in the local business community before you try to apply for a loan.
"It is essential for women business owners to build relationships in the community of their business,"said Anne Hopkinson, owner of Haydenville Broomworks. "Part of being a small business buildingtrusted relationships, and this can take time."
To begin, Hopkinson encourage seeking small business support groups in your area, such as thementorship program or University small business development center. Many mentors in the organization work with lenders, and professional relationships that can benefit you in the loanapplication process.
Your financial information is held
Nothing will get your loan application rejected faster than having your finances in disarray. MonicaGuevara, Manager of business services lending access network center, reminded applicants that loansneed to verify all information you provide through the document, therefore, have the necessary reports and reports organized and ready for review will prove that you have done your homework.
"Make sure you are paying your bills on time, to report all your income, and be able to explain howyou will use the loans," Guevara said.
Lenders often require the recipient to have some kind of collateral to put down on their loans, somake sure you have some money before you apply.
Exploring loan options
As with any other major financial decisions, it is always a good idea to explore all the options before deciding on a final choice. Greg Simmons, PNC Bank of South Eastern SBA Sales Manager, saidbusiness owners should spend more time shopping around for lenders consistent with their needs.
"Although a loan request may be eligible, not all banks have the same appetite for the industry, the project or the rate," he told BusinessNewsDaily. "Considering the cost of a full relationship, not simplythe rate loans."
While the Bank chain is definitely a good place to start researching your loan, the lender is anindependent option to keep in mind.
"Small business lending is authorized can be much more personal, and therefore more likely to giveyou money," Lavon said.
Search in the lending program, reserved for women
No matter where they apply for a loan, women entrepreneurs face a lot of competition. However,some lenders have made lending program reserved for women owned business to make it a little easier for business owners to get funding.
"We have seen historically underrepresented women with co-ed Fund, and the appearance of moneydedicated to women is a new and exciting trends," said Marina Lee, founder of the women in technology Startups and Network Edge.
Lee proposed to apply for the loan sum and Center for women program at the same time to increasethe ability to get money.
Know what you need and you'll use it well
Can women business