Getting a loan in this economy is no easy task! I know personally that the application process for small business loans can be daunting. That process can be made even worse if the loan application is rejected in the end.
Women owned small businesses typically endure even more obstacles. I wouldn’t go as far as to say that there is gender discrimination in banks, but the common circumstances that may be contributing to the trend do seem to have a connotative effect in terms of approval rate.
Considering that many women small business owners begin their ventures after a professional leave of absence, many times after the kids have matured to allow enough time for a business, lending institutions consider the lack of experience or gap in work history to be a negative factor.
When the bank manager asks you what you’ve done for the last 10 years and you answer – “raised my children”, a red flag suddenly goes up!
Borrowing from family and friends is a good way to get the ball rolling. Be sure to use a good loan contract, either by an attorney or done by yourself. If you are going to make the contract on your own consider a loan template or resource like LoanBack – a great service that not only helps create a loan contract, but also helps to manage the payback.
Once your business is running many more options and alternatives to a small business loan exist. Equipment leasing becomes a viable financing solution. While most leasing companies won’t approve start-up, established business with a decent credit history can fiance commercial equipment.
Business cash advances can also be an option for businesses that can prove historical revenue for at least 6 months. If your business is processing credit cards then your funding request can be simple to apply for and easily approved.
Keep in mind that there are plenty of ways to finance your business, even in hard economic times – stay true to your dream!