Small Business Loans for Women

For many small business owners, the old adage “It takes money to make money” can very well be rephrased as “It takes debt to make money.” After all, very few new business owners are born wealthy .

Loans for new businesses are tricky. You may have to use your house as collateral. Another alternative is to use the business for collateral. Unfortunately, the bank won’t value your business the way you do. They’ll only be looking at the resale value of the equipment, at auction prices.

Getting a Small Business Loan with No Credit

If your credit is bad and you don’t have assets, you may need to seek out a cosigner. Sometimes called a “silent partner” This person assumes the financial risk inherent in your endeavor. It’s important, in this case, that you have a relationship with your cosigner that allows them to help you make important financial decisions. Ultimately, you should both be “on profit’s side” rather than allowing your ego to make business decisions.

Writing a Business Plan

Writing up a solid business plan is important, both as an exercise, to help you solidify business goals and to communicate with lenders exactly what makes your business idea awesome.  Writing a business plan is simple, you just have to think of everything. Depending upon the nature of the business, your business plan may be 20-500 pages long. In the US, the SBA can help finalize your business plan. Make an appointment with a representative from the Service Corps of Retired Executives (SCORE) and ask for guidance when you think your plan is done.

Applying for Women’s Business Loans

Finally, business plan in hand, you’re ready to apply for a woman’s business loan. Accion makes loans of up to $50,000 for women who have trouble with traditional lenders. In addition, they offer other financial services that can help improve your bottom line. Grameen Bank, the Delaware Access program, Key Bank and New Mexico’s Loan Fund program also make special allowances for funding loans for women in business.

Other programs, like Women’s Economic Ventures, makes funds available for women who have survived a year or more in business and are looking to expand or other wise invest in the growth of their business.