2024 Best Loans for Women Owned Businesses
Loanmantra.com Provides Advice by Women for Women --
Overcoming Gender Inequality around Funding Together
It’s Women’s History Month! As we celebrate the outstanding contributions women have made in the past, there are current trends making history. The United Nations champions International Women’s History theme: “DigitALL: Innovation and technology for gender equality,” to highlight the need for inclusive and transformative technology and digital education. One-way women are fueling growth as innovators is through business ownership. The U.S. has 12.3 million women-owned businesses, which generate $1.8 trillion per year. America also leads the way in growth for female businesses globally!
Despite these accomplishments, there are still forms of inequity to address when it comes to financing women-owned businesses. Many people already know about the “wage gap,” or that female employees earn less than men, but a lesser-known statistic is that women acquire less business funding in terms of investors, business loans, and grants as well. For instance, venture capitalists invested $130 billion in U.S. startups in one year, but only a tiny fraction of that – 2.2% – went to female business owners.
“Only 25% of women are likely to pursue financing for their businesses vs. 34% of male entrepreneurs. The loans female business owners receive are generally one-third less than their male counterparts – a significant and unsettling discrepancy,” said Emily Doxford, vice president of marketing and communications at Loanmantra.com. “That’s why Loan Mantra is working hard to democratize the lending process and make financing easy, equitable, and accessible for everyone.”
In addition, Emily offers female entrepreneurs the following advice when seeking funding:
Explore online loans from trusted lenders. With online lending, decision-makers consider quantitative data first. Funding is largely objective, based on numbers and analytics, and isn’t biased by the applicants’ gender, appearance, race, age or any other potentially discriminatory factor. A recent policy analysis from the World Bank found that 35% of loan officers hold a bias against female, SME borrowers, citing gender as evidence for risk. However, good online lenders will have efficient underwriting processes, as well as term flexibility.
Do your research. Because there are still many barriers for women in securing loans, the Small Business Administration (SBA) prioritizes female business owners getting funding. An SBA loan can make financing more accessible, affordable, and attainable for female business owners. Working with SBA lenders--and female SBA lenders at that--will streamline the process further. But this isn’t the only option – do some research (or consult with a financial professional) to find the best small business loans for women.
Consider an SBA microloan. The SBA microloan program can be a good fit for female business owners who need a small, short-term financing solution or a small capital injection to start their business. Microloans are generally easier to qualify for than other types of loans. Entrepreneurs don’t need strong credit to apply, and applicants don’t have to be established business owners with a history of high revenue.
Leverage loans and programs designed specifically for female entrepreneurs. Certain business loans are designed for women, including The Tory Burch Foundation’s Capital Program, which provides “mentorship and networking, entrepreneurial education, and access to capital” between $500 and $100,000. And non-profit Grameen Foundation provides microloans for female entrepreneurs, starting at $1,500, to support their training, education and networking.
Be clear about the terms of the loan. Review the qualifications for the loan before you commit to it. Understand the amount you can borrow, repayment terms, interest rates, and associated fees.
Determine whether you really need a loan. What do you need money for? If you need a backup method to pay expenses when cash flow is tight, you might simply need a business credit card instead of a loan. Also, a business line of credit, which works like a credit card and is available to businesses with lower credit ratings, can be a great solution for short-term financing needs, ongoing operating expenses, business emergencies, etc.
Consider a grant. The beauty of grants is that they don’t need to be paid back. Visit grants.gov to explore the options and apply for a federal grant. The site provides resources and instructions to help people navigate the application process and determine which grants are most appropriate for their specific situation.
Work with an expert. While the process of finding business funding might seem overwhelming, it doesn’t have to be. The financial professionals at Loanmantra.com excel at helping people find and secure the most appropriate loans, overcome obstacles, and achieve their business goals.
“Loanmantra.com is proud to support female entrepreneurs and provide exceptional service to find the best funding options for a secure financial future,” Doxford also said, “It’s about helping people fund their dreams to build success.”
About Loan Mantra
Loan Mantra is a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to new entrepreneurs, small and medium sized businesses. Small business owners identify two obstacles to their success: access to capital and financial education. Loan Mantra removes these hurdles. The company believes that borrowers of all sizes should have equitable access to the $5.4 trillion marketplace of SMB financial products, lenders, government programs, and services.
Loanmantra.com's end-to-end portal, BLUE (“borrower lender underwriting environment”) is built on decision-tree logic, so borrowers answer questions in the manner they understand best and find the right financial products and lenders. With a few simple clicks, users complete loan origination paperwork; upload documents; connect or communicate with financial partners; and manage their loan process--anytime and anywhere. This provides best-in-class FinTech meets NIST v. 500 standards so borrowers can safely store their financial records, making it painless to acquire more capital if they need it down the road.
As a minority-owned business, Loan Mantra understands the challenges facing underserved borrowers. The company goal is to empower human entrepreneurship through best-in-class technology, financial literacy, and commitment to equitable market access. Reach out today at www.loanmantra.com.
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