Small Business Loans for Women In Its Varied Forms

It is a cliché to think that entrepreneurship is exclusively for men. The view no longer has firm grounds to stand. Women have started to take on stage and are desperately making their presence felt in the corporate world. The reason behind is not just their dexterity but the inherent support in the form of small business loans for women that they find. So, women are successfully making an entry in Business World and are posing very tough competition to the men’s fraternity.

Government Aids

Success of women in business hugely depends on loans. Realizing this very need, government has started to launch several programs to aid females in receiving funds to take forward their organization to new levels of growth. Business loans are required not just for growth but also for sustenance and continuance of an enterprise. To make it easier for women, Fed has launched exclusive programs like ‘Women-owned Small Business (WOSB) Federal contract program’. This provides a very innovative platform where Female entrepreneurs can compete to secure federal contracts.

Unflinching Support Of SBA

The Small Business Administration maintains a separate Office of Women's Business Ownership (OWBO). This wing provides special assistance and fulfills advocacy needs of ladies doing business. The OWBO works on the technicalities and details out the financial requirements of an existing women business owner. It also takes care of the training requirements and counsels female business owners to do their job well. The mentoring programs of OWBO may extend up-to one year depending on the knowledge that the entrepreneur has. In order to make the mentoring programs more easily available, SBA has opened Women Business Centers. Female entrepreneurs can approach these centers and they can receive counseling about methods to start and grow a company.

Other Loan Sources for Female Entrepreneurs

Being women, females have a certain advantage over male counterparts and can be funded by many other groups and foundations. They just have to look around for other sources of funding available to them. Some of the sources can be underlined as below:

a)      Venture Capital Funding: In this form of funding what happens is one investor or even a group of investors are found willing to transfer money as loans to the account of a women entrepreneur. But then such investors also seek a certain share in the business that is owned by the damsel. This is not really bad for the owner as the investor will have a stake in the company and will do everything possible to make it work.

b)      Angel Investors: Angel Investors are not like Venture Capitalists and may not ask for a stake in the company but instead may look for securities. They are found to be intuitive and take interest in organizations that have an overwhelming market potential, sound strategy and a good number of existing customers.

c)      Cash Advance Funding: This funding is certainly not recommended for startups. What lenders do is they find cash from credit card sale. This is a very straightforward form of a loan and the terms and conditions are clearly specified. The terms cannot be altered under any circumstance and so this grant is mostly availed to fulfill working capital requirements of a company.

d)      Acquaintance Funding: In this form of form of funding, the woman has to find someone known like family members, friends or work colleagues. Then a consensus has to be reached at whereby repayment terms, interest rates and profit shares can be finalized. If it is made attractive then the acquaintance may be willing to offer loans to the company.

All these options are open to women entrepreneurs and they are found trotting on them to get their organization funded. So, there is advantage of being women and female entrepreneurs can capitalize on this very ground. They can certainly make it big and grow their organization to the extent that their company can skyrocket.