Of all businesses that apply for loans from traditional lenders, just a few stellar candidates actually get financing. Unfortunately, banks see most Small Businesses as a high risk, so they’re going to be very selective about who they lend to.
But then again, to grow your business, you need access to capital.
And if you’re a woman who owns her own business, accessing capital gets even more difficult.
The California Reinvestment Coalition performed a study that found bank loans to female-owned businesses in the state dropped by 70% from 2007-2013. That effect may be more or less dramatic in other areas of the nation. But, you get the general point – it’s tough for female business owners to get financing.
Business owners, male or female, can get access to financing by following these simple tips:
- Seek alternative lending. “Alternative lenders” are a new type of lender that developed as a result of small businesses having difficulty getting traditional bank loans. Unlike banks, alternative lenders don’t require business owners to pledge their personal assets. Because they lend exclusively on the current performance of a business, alternative lenders are less concerned with credit scores, prior bankruptcies, or professional experience.
- Have a business currently in good health. Female business owners who have been successfully operating for at least 12 months, gross $10,000 in monthly revenues, and don’t have any open bankruptcies can get access to financing.
- Have recent financial statements on hand. While alternative lenders streamline the lending process significantly, they require minimal paperwork. Standards vary by lender, but business owners should be able to show the last few months of their company’s financial performance with statements from their financial institution.
The process alternative lenders have you go through varies by the company. But, the general idea is that the procedure is much simpler, and you get access to the capital you need to grow quickly.
At Reliant Funding, for example, instead of hours of paperwork and weeks of waiting, you fill out just a single page application, provide a few recent financial statements, and then you can get funding in as little as 3 days.
And whether you’re a man or a woman doesn’t matter. Reliant Funding lends funds based only on the current health of your business. And to top it off, you don’t have to pay any up-front fees, pledge any personal assets, and you can get up to $500,000 per location.
Click here to learn more about Reliant Funding’s fast, flexible small business loans.