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Here is How To Get A Small Business Loan
Are you in a business and wondering how to get a small business loan to keep it going?
The dynamic world of business and startups today has left people wondering “what’s the best small business loan for my entrepreneurial category?”
Well, I may not have a clear answer to that, but I know if you are a woman with entrepreneurial ideas and you find yourself asking this sort of questions as well, this post is for you.
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Places to Get Small Business Loan:
If you are ready to apply for small loan to get started, we are going to outline a few places to help you get started right away!
Here, you get to find out the various ways in which you can get a good loan at a good rate as an entrepreneurial woman.
1// Family and Friends
As a woman, your immediate environment and the people around you can support your business if you have a good business idea and they see that such business has the tendency of becoming a successful one.
Borrowing from relatives and other close friends is a good means of raising capital for your business.
Once the business becomes a success, you can make refunds out of the profit made. An advantage of this source of finance is that it usually does not involve the payment of interest on the amount borrowed.
2// Business Line of Credit
Women who wish to invest in small businesses can obtain a loan from this source.
This makes available medium-term loans for female entrepreneurs to use as capital for taking up a new business.
Payment of interest on this type of loan only applies to the amount withdrawn. It usually does not require the entrepreneur to be experienced in the business for a long period of time before she can apply for such credit.
Experience of six months is okay for an entrepreneur to apply for such a loan.
3// Small Business Grants For Women
Women can raise capital for their businesses from grants and subventions acquired from the government.
Grants can be raised from NGOs (non-governmental organizations) and other not-for-profit organizations.
In many countries, government support women to finance their businesses especially at their early stage. This assists them in setting up their own small businesses.
4// Online Loans For Women
There are a lot of online lenders who are willing to lend short and medium-term loans to female entrepreneurs to start up a business.
Short term loans with a payback period of 3 to 18 months and medium-term loans of 2 to 5 years.
These loans can be processed within a short period of time and are available for female entrepreneurs who want to take up a business opportunity.
Different interest rates apply to these loans based on the period of lending.
5// Micro Loans for Female Entrepreneurs
Businesswomen can obtain microloans from this source as it lays emphasis only female entrepreneurs who wish to jump start a business but have no means of financing the business.
It makes available soft loans for them as working capital for the purchase of supplies and inventories to kick start their desired business.
However, the loan from banks attracts a higher rate of interest on the amount borrowed.
6// Banks and Other Financial Institutions
Banks and other financial institution have developed an interest in female entrepreneurs as they have seen the rate at which women have been successful in the business world.
Banks provide financial assistance to female entrepreneurs because they have been able to convince them of their capability to run a business successfully.
This has made it possible for them to be accessible to loans for business development.
7// Credit Union & Societies
Credit unions are one of the easiest ways women can obtain short or medium-term loans to finance their businesses.
If the woman is a member of such union, she will be granted a loan to start her business and make refund out of the net profit generated from the business.
This is also advantageous as such loans do not always require the borrower to pay interest if the borrower is a registered member of the society.
8// Mortgage Loans
Working capital for a new business can be generated from this source if the owner of the business has a landed property or tangible asset which can be put in lien before the loan can be granted.
The loan will be secured on the borrower’s property.
And in a situation where the borrower fails to pay back the loan within the stipulated period of time or breaches the terms of the loan, then the property surrendered in lieu of the loan would be possessed by the lender.
9// Angel Investors
Angel investors are a group of individuals interested in developing new businesses.
Female entrepreneurs can get angel investors involved in the affairs of their businesses.
But the female entrepreneur must not allow them to decide the future of the business as she only seeks financial assistance and not her business being taken over totally by them.
As seen above, getting a loan as a woman is a more or less an extension of getting a loan at all. The best steps, however, are those wrapped around the idea of the female gender.
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