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Several years ago, it was difficult for women to get financing for their small business. Today, it has gotten easier, but things are not perfect. Women owned businesses have outgrown other small businesses by 1.5 times over the past decade, so it is important than ever for female business owners to have financing options accessible.
Although business owners need to understand their financing options, in this article we will go over the opportunities that are available for women entrepreneurs.
How Women Business Owners Can Receive Financing
Research Grant Opportunities for Women
There are so many research grant opportunities available for women. You will find that researching and applying for grants is time consuming, but the potential return is worth the investment. You can find these grants through government agencies from the local level all the way up to the federal government.
You can search for federal government grants on Grants.gov. You can search for all the options by filtering to your needs. Also, before applying for a federal grant you will need a DUNS number, register with the federal government and create an account on Grants.gov.
You can check with your state or city for economic development resources or get in touch with one of the Small Business Administration (SBA). While the services provided by each center will vary, some could have grants for woman-owned businesses.
Networking with Female Entrepreneurs
Networking as a business owner can open many doors for you. If you are interested in business financing, you can benefit from reaching out to other female business owners in your network for their advice on your situation. Even better, make some time to speak with another woman business owner who has been through the same financing application process.
If you are struggling with networking in person, try going on social media and connecting with people on there. Social media is a great tool to connect with likeminded people and network with other females who are also looking for financing.
Evaluate Your Financing Needs
There is no formula for knowing if you need financing or not. There are some things to consider so that it helps you make your decision to apply for financing. First, you should ask yourself if it is possible for your business to survive without obtaining financing. This will depend on several factors. For example, you might need inventory financing so you can capitalize on peak selling season, or you might need new equipment to fix and old broken piece of equipment.
In some cases, financing is not appropriate for dire situations. In some cases, the right financing can be just the thing you need to meet your small business goals. If you think financing might be what you need, consider the costs of not obtaining financing.
Ultimately, not having cash to purchase inventory, equipment, or other assets could be more expensive than the interest rate and fees you pay on a loan. Not having enough money to purchase inventory, assets, or equipment could be more expensive than the interest rate and fees you pay on a loan. Make financial decisions that are responsible by evaluating your needs for your business now and in the future.
Consider Certification
If your business is certified, you may have other opportunities that you did not know about. These classifications give you preferred access to government contracts, which can provide new business. These resources can help you understand all the unique considerations you must make for your woman-owned business before applying for financing.
The Bottom Line
There are many things to consider before you apply for financing. If you pay close attention to your business needs and work with a lender who provides products that fit those needs, financing can quickly take your woman-owned business to the next level.
