Every woman knows how hard it is to get small business loans! Even my Uncle Allan is a well established small business owner and he wanted to branch to the restaurant industry, but he simply could not procure financing for this! Pretty gruesome huh? For some reason it is even harder for women to get a loan for a startup or even an existing business. However he gained knowledge over the years from his expertise and he has taught me a thing or 2 about applying for small business loans.
First and foremost is to make sure you have a legible business plan if you are starting a new business. If it is an existing business that needs funding, make sure you have good income and expense records, bank statements and any documentation that shows money coming in an going out on a steady basis.
Once you have your documents all ready now it’s time to figure out who is going to give you a loan. Traditional banks and other lenders can be very tough to get approved through. However, there are companies like TI Financial that specialize in small business loans for women. These companies have constructed lending programs that has cash available from investors and other large networks of people and companies willing to invest in your future.
Additionally, if you don’t mind the hassle of dealing with the government there are also loans available through the Small Business Administration (SBA) but be prepared for an astronomical amount of paperwork as well as a lot of going back and forth with them. These are great small business loans because they offer some great rates but I’m not sure if it is all worth the hassle. Definitely a possibility but a last resort in my opinion. There are other options available and personally I prefer to follow the path of least resistance.
Ok, back to the investor/network funded option. This is by far on of the simplest and most effective small business lending platforms out there today! I just love the simplicity of the whole process and yes they provide small business loan services for women nationwide. You can apply for your loan online and everything else just kind of takes on a life of its own. Talk about smooth! As you can tell I have dealt with these guys before and have nothing but good things to say about the whole process.
Below are some additional tips and resources (link to SBA at bottom) that I have found online. Some may or may not be pertinent to your situation. Hopefully this has helped you some and I wish you all the best in your adventure.
Additional Tips For Small Business Owners
Below are a few suggestions you may use so as to safeguard your small business loan.
• Be very cautious about the rationale for the loan. You have to reveal that a very great, quite legitimate reason you need somebody else’s cash, otherwise they will not function with this. Moreover, be sensible about your requirement, your creditor will take into account the scale and experience of your business area before they give you the loan amount.
• The next point to remember is that everybody who’s lending you money is doing this because they wish to create money off you, so that you need to concentrate on a comprehensive account of the way you anticipate returning the loan cash. Eg, define you will employ your gain money to pay back the loan.
• Put in your business strategy too and ensure it’s a logical one that is damn great. The company program will provide your lender a notion about your skills as a freelancer and will also provide your lender a notion concerning the direction and some other pertinent info.
• Reassuring the creditor is quite important, particularly for small business loans. Therefore do provide a thorough account of the safety you’ll have the ability to supply to your creditor. Consider it, in case you can not provide them any safety, then why should they?
• Include your financial statements of the previous 3 decades too. All these must be clean and also the info offered by you ought to be legitimate and accurate. Also receive your tax adviser to place his signature on it, or, if that is not feasible, your accounts may do the needful too.
• In order to raise the security part of things, you can set in your main financial statements, this will surely help.
• Reports of lenders and debtors.
• You should also install the most recent collection of management accounts. Remember your company needs to be just like an open book. It may seem intrusive occasionally, but keep in mind, you are the one in need of cash!
A Word Of Advice
Before you approach your lender, think about all of the shortcomings in your organization proposal your lender may encounter. Attempt to get in the mind of your creditor. A fantastic idea is to pretend that you’re your cash lender. Consider if you’d give your money to somebody with your company strategy. Otherwise, why? Attempt to remove all of the glitches this way. Small business loans aren’t the hard to manage, an individual has to understand the ideal technique, that is all!
Additional Resources for women wanting to start a small business can also be found at: https://www.sba.gov/offices/headquarters/wbo/