Since the women’s movement there have been thousands of women taking the steps to becoming an entrepreneur. While sexism seems to be a things of the past in the business world many woman who own small businesses fit into a minority. While it is illegal to decline an applicant due to their sex they could receive different terms and conditions to their loan apart from a male of the same credit rating. Small business loans for Women offer those female entrepreneurs the financing they need at a cost effective rate with excellent terms and conditions.
What are Small Business Loans For Women?
Small business loans for women are loans designed specifically for female entrepreneurs in ownership of a small business. This type of financing is provided by banks and other lending institutions and backed by the U.S. Small Business Association (SBA). The SBA offers this financing to all women that own their own small businesses. Rates vary just as with any other type of loan, on average wit this type of financing business owners receive 3% interest rates or higher. Small business loans for women offer low-fixed rates and long terms. With the SBA backing the loan the lender looks at it as a secure loan getting the borrowing business owner even better rates, terms and conditions.
Common uses for Small Business Loans For Women
- Working capital
- Equipment Purchases
- Inventory Purchases
- Real Estate Purchases
Terms and Conditions
Terms and Conditions of all small business loans vary with the lender and the borrower. With SBA backed small business loans for women the SBA holds responsibility for the borrower to repay the loan. The borrower may also be required to put an asset up as collateral on the loan, offering security to the lender. If the borrower fails to repay the loan the lender can seize said collateral and sell it to cover the cost of the loan.
How to get a Small Business Loan for Women
- Find a lender that offers this type of financing through the SBA
- Make sure your small business meets the lender and SBA’s requirements
- Submit an application
- Negotiate the Terms and Conditions to the loan, if possible
- Sign the contract and set up a repayment schedule