Business Loans for Minority Women and Other Funding Options

As a minority woman in business, it is important to know what is available to you for business funding. Do business loans for minority women even exist? The answer is, sort of. There are business loans for minority women, but not for them exclusively. There are other funding options out there as well. Grants, crowdfunding, and even angel investors are all viable options.

Business Loans for Minority Women and So Much More

How do you find the best options for you? How do you know if you need to be looking for grants or business loans for minority women? The truth is, you need to explore every option. This is because, in reality, it is probably going to take a combination of funding options to fully fund your business.

Business Loans for Minority Women: The Truth

The thing is, there aren’t a ton of loan programs only for minority women. You are really looking for regular loans that work with the challenges faced by business owners that fit into both categories. Once you understand that, your search will become much easier.

Business Loans for Minority Women: Traditional vs. Private

As a general rule, loans from traditional lenders are both the best and the hardest to get. Their terms and rates are much better than those offered by private lenders. They also have more stringent eligibility requirements. They typically require higher credit scores, longer time in business, and more annual revenue.

Find out why so many companies use our proven methods to get business loans.

Private lenders, on the other hand, work a little differently. They tend to have higher interest rates and less favorable terms. However, they have less strict requirements for approval. They allow lower credit scores and less time in business, as a general rule.

The Small Business Administration

So where do you go to find business loans for minority women? Since traditional loans offer the best rates and terms, they are truly the place to start. They are harder to get, but the Small Business Administration loan programs help make them easier. They do not lend funds directly. Instead, they work with traditional lenders. They back loans to make them easier for borrowers to qualify. You can find a list of SBA partner lenders using their lender match tool.

7(a) Loans

This is the Small Business Administration’s main loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

The minimum credit score to qualify is 680. In addition, there is a down payment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion. Like 7 (a) loans, private sector lenders or nonprofits process and disburse these funds. They work well for commercial real estate purchases especially.

Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

There is also a 2-years in business requirement. For a startup, equivalent experience for management will meet this.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based nonprofits handle SBA microloan programs as intermediaries.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund, and the terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

These loans max out at $350,000. They have a maximum interest rate of 11.50%. In addition, terms range from 5 to 25 years, and the SBA guarantee is less than it is with their other loan programs at 50%. To qualify, your credit score must be above 680. Another requirement is that you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary. It depends on the lender.

The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Also, there is not as much application paperwork. As a result, express loans are a great option for working capital, among other things, if you qualify.

Other SBA Resources

The SBA exists for all small company owners. However, their Office of Women’s Business Ownership exists to help women local business owners specifically. This includes women minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Business Loans for Minority Women: Private Lenders

Other options for business loans for minority women include private lenders. These loans, much like SBA loans, are not exclusively for minorities or women. However, by nature they tend to work well with the unique challenges each group faces.

Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. You must have been in business for 12 months or more and have at least $50,000 in annual sales to qualify. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. They do the legwork by vetting a network of competing small business lenders. Funding is fast, sometimes in as little as 24 hours.

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. The minimum personal credit score for approval is 560.

Find out why so many companies use our proven methods to get business loans.

Blue Vine Business Loans for Minority Women

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor, and their application process takes place exclusively online. Their minimum loan amount is $5,000 and their maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.

Grameen

Microloans are a great option when it comes to business loans for women with bad credit. Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Other Resources for Women

Here are some other organizations that work to help women of all races.

National Female’s Service Council

The NWBC is a federal advising council. It works as a resource of guidance to the government on women’s organization problems. The objective is to encourage campaigns, programs, and policies to sustain females from startup to growth.

Other Tools to Consider

Along with those firms listed above, these agencies provide support to women owned businesses.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.

National Association for Female Executives

This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.

National Association of Women Business Owners

The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.

SCORE

With more than 300 chapters and 10,000 volunteers, this is the country’s largest network of expert business mentors that volunteer their time. They match female business owners with mentors, or they can participate in a workshop to help them learn what they need to know to be successful.

Don’t Forget to Look into Grants to Supplement Business Loans for Minority Women

Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. Here are a few you can start with.

Amber Grant

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

Find out why so many companies use our proven methods to get business loans.

#GIRLBOSS Foundation Grant

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information.

Grants for Minorities

If you are looking into business loans for minority women, then you must be both a minority and a woman. That being the case, you should check out these grants for minorities as well.

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.

Non-Minority or Female Specific Options

There are grants options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.

FedEx Small Business Grant

There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business. In addition, there is a requirement for an elevator pitch about what makes your business special. Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.

USDA Value Added Producer Grant

The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses. It includes minority owned business. Grants range up to $250,000. They are specifically to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas. They must be operating as one of the following:

Cooperative
Farmer
Rancher
an independent agricultural producer
or an agricultural producer group

Business Loans for Minority Women and Other Helpful Resources

It’s important that you know about your options for business loans for minority women. However, you need to know what other resources are available as well. There are plenty. Take a look around and see what you can dig up.

The post Business Loans for Minority Women and Other Funding Options appeared first on Credit Suite.

How to Find Small Business Loans for Women

Female business owners can find small business loans for women to help fund their business. That’s not their only option though. The key, I think, lies with the terminology. The truth is, there are some funding options that are geared specifically toward women. However, they are few and far between, and they aren’t really loans. While some female geared organizations offer funding options for women only, they are typically in the form of grants.

During the COVID-19 situation, there are still loans out there which are specifically for women. But women entrepreneurs should also be looking into SBA Paycheck Protection Program funding.

Is There a Secret Sauce to Finding Small Business Loans for Women?

It isn’t a bad idea to pursue these options. Yet, that can’t be where it ends. Honestly, you cannot rely solely on specific small business loans for women. In fact, what you are really looking for are loans available to everyone that may work better for women than others. Regardless, you need to position your business to be fundable no matter the gender of the owner. If there is a secret sauce, fundability is it.

Get our business credit building checklist and build business credit the fast and easy way.

Small Business Loans for Women: The Small Business Administration

When it comes to small business loans for women, the Small Business Administration is the cornerstone. Basically, since the loans are guaranteed by the government, they are easier for almost anyone to qualify for than regular traditional loans. Here’s a sample of the loan programs the SBA offers.

7(a) Loans

This is the Small Business Administration’s flagship loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion. Similarly, private sector lenders or nonprofits process and disburse these funds. Furthermore, they work especially well for commercial real estate purchases.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. For these, community based nonprofits handle funds as intermediaries.

SBA Express Loans

These loans max out at $350,000 and have a much faster turnaround. In fact, the SBA takes 36 hours or less to make a decision. Also, there is not as much application paperwork. As a result, they are a great option for working capital if you qualify.

Other SBA Resources for Women

Remember, take a minute to check out the other resources the SBA offers for female entrepreneurs. For example, the Office of Women’s Business Ownership. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Small Business Loans for Women: Private Lenders

Next, if the SBA doesn’t work out, or if you still need more funding, there are some private lenders for small business that tend to work well when it comes to loans for women in business.

Lending Club

LendingClub functions as a peer-to-peer lender. It offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or even hire new people.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. The key is, they do the legwork by vetting a network of competing small business lenders. With Lendio, funding is fast. It sometimes takes as little as 24 hours.

Blue Vine

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. Also, they offer the ability to talk with a financing advisor. Their application process takes place exclusively online. The minimum loan amount is $5,000 and the maximum is $100,000. To be eligible for financing from BlueVine, you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. In fact, their platform is vastly different. They are a kind of cross between crowdfunding and lending. Surprisingly, their loans have a 0% interest rate. That means, even though you have to pay it back, it is actually free money. In addition, there is no credit check. The only requirement is that you have to get at least 5 family members or friends to donate money for your business. Furthermore, you yourself have to give at least a $25 loan to another business on the platform.

Grameen

In contrast to most, Grameen actually does offer microloans specifically for women. The loan amounts range from $2,000 to $15,000. They also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Small Business Loans for Women: Other Resources that Can Help

It can be a good thing to work with these organizations when you are trying to find small business loans for women. Truly, each exists to support and aid women business owners in their small business endeavors. The tips, tricks, and support they offer can make all the difference in finding loans for women in business.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers work hard to help women succeed. They offer training, business development, financing, and mentoring opportunities.

National Association for Female Executives

Also known as NAFE, this organization does a lot as well. For example, they sponsor events, provide training, and extend other resources to help female business owners achieve success.

National Association of Women Business Owners

In the same way, the NAWBO works nationwide to offer training, events, and other resources to female owned businesses across the country.

SCORE

SCORE is the country’s largest network of expert business mentors that volunteer their time with more than 300 chapters and 10,000 volunteers. They connect female business owners with mentors. Alternatively, they can participate in a workshop to help them learn what they need to know to be successful.

Get our business credit building checklist and build business credit the fast and easy way.

Small Business Loans for Women: A Better Option

The thing is, your gender should not define the funding you are eligible to get. While the nature of our society dictates this somewhat, there are things you can do to ensure your business if fundable despite your gender. Any business, woman owned or not, should be fundable to ensure the availability of funding whenever needed. So, while you are looking for small business loans for women, make sure your fundability is in order.

Start with the Foundation

Your business cannot be fundable if it is not set up properly. That includes the following.

Don’t Use Personal Contact Information for Your Business

This includes a business phone number and fax number, business address, and email address. Not just any email address though. It needs to have the same URL as your website. More on that in a bit.

Dump the SSN for an EIN

An EIN is an identifying number for your business that works in a way similar to how your SSN works for you personally. You can get one for free from the IRS.

Get Incorporated

Incorporating your business as an LLC, S-corp, or corporation is non-negotiable when it comes to building fundability for your business. .

Open a Business Bank Account

Open a separate, dedicated business bank account.

Licenses

Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.

Website

Spend the time and money necessary to ensure your website is professionally designed and works well. Also, pay for hosting. Don’t use a free hosting service

Small Business Loans for Women: What Else Makes a Business Fundable?

The set up is not the end of the story however. It simply sets the business up to build fundability. After that is done, the actual building begins. Unfortunately, it may be more of a matter of damage control than building in the beginning, depending on history.

Business Credit Reports, Business Credit History, and Credit Score

These detail the credit history of your business. They are a tool to help lenders determine how credit worthy your business is.

The most common places for lenders to pull a business credit report from are Dun & Bradstreet, Experian, Equifax, and FICO SBSS. Since you have no way of knowing which one your lender will choose, you need to make sure all of these reports are up to date and accurate.

Lenders will be looking not only at your credit score, but your detailed credit history including:

How many accounts are reporting payments?
How long have you had each account?
What type of accounts are they?
How much credit are you using on each account versus how much is available?
Are you making your payments on these accounts consistently on-time?

Other Business Data Agencies

There are other business data agencies that affect those reports indirectly. Two examples of this are LexisNexis and The Small Business Finance Exchange. They gather data from different sources, including public records. This means they could even have access to information relating to automobile accidents and liens.

Identification Numbers

Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you have to apply for one through the D&B website. You have to have this number to have a file with D&B, and you have to have a file with D&B to build business credit.

Business Information

This is a problem because of those fraud concerns lenders have. When business information doesn’t match up, it sets off alarms. Maybe your business licenses have your personal address but now you have a business address. You have to change it. Perhaps some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application. Do your insurances all have the same information?

Get our business credit building checklist and build business credit the fast and easy way.

Financial Statements

Both your personal and business tax returns need to be in order. Not only that, but you need to be paying your taxes, both business and personal.

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about. For example, ChexSystems issues reports with information on bad checks. These reports can affect your bank score. If you have too many bad checks, you will not be able to open a bank account. That will seriously affect fundability.

Anything can come back to haunt you. Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record? How about liens or UCC filings? All of this can and will affect the fundability of your business.

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion affect the fundability of your business. The number one way to get a strong personal credit score or improve a weak one is to make payments consistently on time.

The Application Process

Everything about this affects whether or not you can get funding for your business. Is your application complete and accurate? Are you applying for a loan product that fits your needs? Is the timing right? Did you find a good lender match?

There is More to Funding than Finding Small Business Loans for Women

There is certainly nothing wrong with female business owners seeking small business loans for women. They are a great first stop. In fact, now is a great time to borrow with the Fed cutting rates due to the coronavirus economic downturn. Still, no one should let their funding hinge on their gender. If you work to build fundability for your business, whether you can get funding for your business will never be a question again.

In fact, when you need funding and you have strong fundability, lenders will be competing to give you money. With a deep understanding of what makes your business fundable, you will find you can get more funds with lower interest rates. Gender has nothing to do with fundability, so don’t let it dictate the future of your business. Use gender specific financing to get started if you need to, but focus on total fundability to ensure ongoing business growth.

The post How to Find Small Business Loans for Women appeared first on Credit Suite.

All Aboard the Train to Small Business Loans for Minority Women

Are you a minority female looking for small business loans? Then hop aboard the small business loans for minority women express. Each stop along the route has something to offer. Pull into the station, stay awhile, and learn about what each option has to offer.

Small Business Loans for Minority Women Come in All Shapes and Sizes, Find the One that Will Work Best for You

Once inside the station, you may find that small business loans for minority women aren’t what you expect. In addition, you will find there are grants and other resources available to help female minority business owners. There are many other options for funding as well, including loans that are available to everyone. The only way to determine which option or combination of options will work best for you is to learn all you can about each one.

Find out why so many companies use our proven methods to get business loans.

First Stop: The Small Business Administration

The first stop on the small business loans for minority women express is the Small Business Administration. SBA loans are guaranteed by the government and issued by participating lenders, mostly banks. They can guarantee up to 85% of loans of $150,000 or less, and loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million.

Due to the government guarantee, banks are able to offer these loans at lower interest rates and with less strict eligibility requirements. Since many minorities face challenges getting funding due to lower credit scores and net worth, these loans tend to work for them. This is despite the fact that they are open to everyone and not specifically small business loans for minority women. Here’s a sample of what they offer.

7(a) Loans

This is the Small Business Administration’s cornerstone loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

504 Loans

Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and they use the asset being financed as collateral. There is also a down payment requirement of 10%. This can increase to 15% for a new business.

In addition, there is a 2-years in business requirement. For a startup, equivalent experience for management will meet this.

Microloans

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. Terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

Find out why so many companies use our proven methods to get business loans.

Other SBA Resources

While you are at this stop on the route, take a minute to check out the other resources the SBA offers. They exist for all small business owners. However, their Office of Women’s Business Ownership exists to help female local business owners specifically. This includes females that are considered minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Second Stop: Private Lenders

The next stop when looking for small business loans for minority women is the private lending station. Loans from private lenders, much like SBA loans, are not exclusively for minorities or women. However, They do tend to work well with the unique challenges each group faces.

Lending Club

Lendio

Blue Vine

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor. Their application process takes place exclusively online. The minimum loan amount is $5,000 and the maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you yourself have to give at least a $25 loan to another business on the platform.

Grameen

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Bonus Stop: The Grant Spur

Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. It can be wise to keep your eyes open for loan opportunities even while seeking small business loans for minority women. Here are a few you can start with.

Amber Grant

#GIRLBOSS Foundation Grant

Cartier Women’s Initiative Award

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association says its purpose is to help newer businesses that have an African founder that maintains equal ownership.

There are also grant options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.

FedEx Small Business Grant

There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.

Find out why so many companies use our proven methods to get business loans.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be used for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.

Don’t Stop There: Other Resources for Women

Here are some other organizations that work to help women of all races. The support they offer can help you land small business loans for minority women, or any loan for that matter, and run your business well.

National Female’s Service Council

Other Station Resources

Along with those resources listed above, explore these firms that also provide support to women owned businesses.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.

National Association for Female Executives

This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.

National Association of Women Business Owners

The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.

SCORE

You Are the Conductor: Take Your Business to the Next Level

In the end, the key to getting small business loans for minority women is to take the controls and go full steam ahead. You conduct your ride on the rails of business ownership. You can start by opening the doors to all the funding options that could be available to you. To do this, you have to build fundability. When your business is fundable, you have access to funding from virtually every source possible.

The post All Aboard the Train to Small Business Loans for Minority Women appeared first on Credit Suite.

Loans, Grants, and Other Funding, Oh My! Women Owned Business Grants and Other Funding Options for Women Business Owners

There are a ton of options available to women for business funding. Some are female specific, like women owned business grants. Others are not regulated to women specifically, though they may work better for women than some other options. The key is to quilt together the options that work best for you and your needs.

Top Options for Female Business Owners, Including Women Owned Business Grants

You can look around for women owned business grants and other funding options specific to women. They do exist, but there are not that many of them. The best bet is to combine those that you can find along with options that work well for women in business, though not specifically designed for women exclusively.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Loans for Women

Hands down, business loans are the most easily accessible and sure-fire option for funding a business. This is true whether you are a woman, a minority, a veteran, have a disability, or even if you do not fit into any of these categories. It may be hard to believe, because loans cost money, right? Free money is better, and if those options are out there, they have to be better, right?

While these free money opportunities are great, they are few and far between. Not only that, but they are typically highly competitive. Definitely pursue them, but realistically you need to understand that loans are pretty necessary when it comes to running a business. Especially in the early phases. In general, the best place to start for virtually all small business owners, whether a female or not, is The Small Business Administration.

Small Business Loans from The Small Business Administration

While many start out looking for women owned business grants, you can just know that you will probably need loans at some point as well. Though not specifically for women alone, the SBA offers government backed loan programs. Many of these are perfect for women business owners, even though they are not for women exclusively.

7(a) Loans

This program offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

To qualify, a business owner has to have a credit score of at least 680. There is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. If a business is a startup, business experience equal to two years is enough.

This is by far the most popular of the SBA loan programs. Funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

504 Loans

These loans are also available up to $5 million. They can buy machinery, facilities, or land. Generally, they are used for expansion. Private sector lenders or nonprofits process and disburse the funds, and they work especially well for commercial real estate purchases.

Terms for 504 loans range from 10 to 20 years. Funding can take from 30 to 90 days. The minimum credit score requirement is 680, and collateral is the asset being financed. There is also a down payment requirement of 10%. However, this can increase to 15% for a new business.

Furthermore, there is a requirement that you be in business for at least 2 years, or that management has equivalent experience if the business is a startup.

Microloans

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund, and the terms go up to 6 years. They can take up to 90 days to fund. There is a 640 minimum credit score requirement. However, the collateral and down payment requirements vary by lender.

Demolish your funding problems with 27 killer ways to get cash for your business.

SBA Express loans

Express loans top out at $350,000 and have a maximum interest rate of 11.50%. Terms range from 5 to 25 years, and the SBA guarantee is less than with their other loan programs at 50%. To qualify, your credit score must be above 680. In addition, you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary depending on the lender.

The turnaround for express loans is faster, too. The SBA takes up to 36 hours to give a decision. Necessary paperwork for application is also less, making express loans a great option for working capital, among other things, if you qualify.

SBA CAPLine

There are 4 distinct CAPLine programs that differ mostly in the expenses they can fund. Each of them carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days.

The four different programs are:

Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines -Financing for businesses that need funding to fill a contract.

Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.

Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

You must have a credit score of 680 or above to qualify for these. There is no minimum time in business requirement unless you are getting a seasonal CAPline. That one carries a one year in business requirement.

SBA Community Advantage Loans

This pilot program is set to expire or extend in 2020. It’s meant to promote economic growth in underserved areas and markets. Lenders can be less strict when it comes to poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%. Terms range up to 25 years.

CrowdFunding

If you want to reduce the amount of loans you need to start and run your business, crowdfunding is a viable option. Crowdfunding gives today’s business owners a new way to build a successful business. Don’t be fooled. Not everyone with a campaign on a crowdfunding site is successful. Funding a business with crowdfunding doesn’t happen overnight. In fact, it often doesn’t happen at all. To succeed at crowdfunding, you have to research what works, what doesn’t, and then cross your fingers because truthfully it may work, and it may not.

Find which crowdfunding platform is best to use for your business. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some work better for specific types of businesses than others. Also, some may have higher success rates for women than others. Do your research.

Women Owned Business Grants

All grant programs are highly competitive. However, they are still worth the effort to apply. There really isn’t anything to lose except time. It’s free money. Women owned business grants are rarely enough to fully fund a business, but they can supplement other funding types. Here are some examples of women owned business grants.

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions. Take a look at their website to find out more on how to apply for women owned business grants through this network.

Eileen Fisher Women Owned Business Grants

The clothing brand Eileen Fisher hands out $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.

Amber Grant

#GIRLBOSS Foundation Grant

Demolish your funding problems with 27 killer ways to get cash for your business.

Cartier Women’s Initiative Award

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship and business coaching seminars, as well as be exposed to networking opportunities.

Other Funding Options Beyond Women Owned Business Grants

While programs like those that provide women owned business grants and those offered by The Small Business Administration often work to meet the special challenges women business owners face, sometimes it just isn’t enough. If your credit score does not allow you to qualify for SBA loans, there are other options available as well. They tend to work well, though not specifically designed for women.

Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loan funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

One benefit LendingClub offers with their small business loans that many others do not is access to a client advisor. This is someone to help you figure out how to best use your business loan funds, as well as how to budget loan payments.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. There is a minimum time in business requirement of 12 months to qualify. In addition, you must have at least $50,000 in annual sales. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.

Lendio

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. There is a minimum personal credit score requirement of 560.

Blue Vine

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financial advisor. Their application process takes place exclusively online. The minimum loan amount is $5,000 and their maximum is $100,000. Furthermore, to be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate. That means, even though you have to pay it back, it is actually free money. In addition, they do not run a credit check. The only requirement is that you have to get at least 5 family members or friends to donate money for your business. Also, you have to give at least a $25 loan to another business on the platform yourself.

Grameen

Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. The result is, these loans help borrowers build credit.

Choose Your Funding Options Wisely for Women Owned Business Grants and More

For many, business funding will be similar to a quilt. Just as a quilt weaves various colors and types of fabric into a beautify, functional work of art, so can business funding work. There are various types available, and if you combine the ones that work best for you, they can work together to ensure your business not only stays running, but also growing and thriving. This includes women owned business grants.

The post Loans, Grants, and Other Funding, Oh My! Women Owned Business Grants and Other Funding Options for Women Business Owners appeared first on Credit Suite.

Government Grants for Women and Other Funding Options for Women Owned Businesses

It’s no secret that female business owners face unique challenges when it comes to finding funding for their businesses. There are a lot of options available, but it seems that whenever a woman seeks funding advice, they get a generic answer. Usually it is something related to government grants for women. However, specific government grants for women are not as common as many think.

There Are a Number Funding Options Available for Women Owned Businesses, Including Government Grants for Women

Still, there are plenty of options. Some are designed specifically for women business owners, but most are not. From private grants to government loans, women business owners can fund their businesses and be successful if they know where to start.

Government Grants for Women and From Other Sources

All grant programs are highly competitive. Even the few government grants for women. Despite this, they are definitely worth the effort to apply, as there really isn’t a lot to lose except time. It’s free money that can supplement other funding types. Some examples include:

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions. The grants that are awarded through some of these centers could be considered government grants for women, since the SBA is a government entity.

Eileen Fisher Women-Owned Business Grant

Find out why so many companies use our proven methods to get business loans.

Amber Grant

#GIRLBOSS Foundation Grant

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify. Go here for the complete application information for this small business grant.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship, business coaching seminars, and be exposed to networking opportunities. This is also a private grant.

The Small Business Administration

The SBA offers government backed loan programs, a number of which are perfect for women business owners, though not designed exclusively for women.

7(a) Loans

To qualify a business owner has to have a credit score of at least 680. There is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. If a business is a startup, business experience equal to two years is enough.

This is by far the most popular of the SBA loan programs. Funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

504 Loans

Furthermore, there is a requirement that you be in business for at least 2 years, or that management has equivalent experience if the business is a startup.

Microloans

SBA Disaster Loans

Disaster loans are available in amounts up to $2 million. They are actually processed directly through the SBA. They are available to small-business owners that have been affected by natural disasters. Terms go up to 30 years, and the maximum interest rate is 4%.

Find out why so many companies use our proven methods to get business loans.

The minimum credit score for disaster loans is 660. Collateral is necessary if the loan goes over a certain amount, usually $25,000, if it is available or when it becomes available. For a military economic injury disaster that amount is $50,000. A down payment is not necessary either way.

SBA Express loans

The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Necessary paperwork for application is also less, making express loans a great option for working capital, among other things, if you qualify.

SBA CAPLine

The four different programs are:

Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines -Financing for businesses that need funding to fill a contract.

Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.

Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

SBA Community Advantage Loans

This is a pilot program set to expire or extend in 2020. Its purpose is to promote economic growth in underserved areas and markets. Decision makers can be less stringent when it comes to poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%, while terms range up to 25 years.

Other Loan Options for Women Business Owners

While programs like those that provide government grants for women and those offered by The Small Business Administration often work to meet the unique challenges faced by women business owners, sometimes it just isn’t enough. If your credit score does not allow you to qualify for SBA loans, these options are available as well. They tend to work well, though not specifically designed for women.

Lending Club

Lendio

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. There is a minimum personal credit score requirement of 560.

Blue Vine

Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from than that of traditional or even other non-traditional lenders. It is sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate. That means, even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business. Also, you have to give at least a $25 loan to another business on the platform yourself.

Grameen

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Find out why so many companies use our proven methods to get business loans.

Government Grants for Women Do Exist, but So Much More Is Available

It is possible to find government grants for women. They do exist. However, they are not the only option female entrepreneurs have. Since they are rarely enough to fully fund a business, it is good to know what else is out there.

When looking for government grants for women, start with the SBA Women’s Business Centers. They are going to be your best bet for information of this type. Don’t limit yourself, however. Try the other grant options mentioned above, and look around for others. New ones pop up every day. Know though, that complete funding will almost always require a loan or investor of some type, so keep that in mind as well.

The post Government Grants for Women and Other Funding Options for Women Owned Businesses appeared first on Credit Suite.

Our Shifting Views Of Older Women Throughout American History

In her new book, New York Times op-ed columnist Gail Collins goes back centuries to find out how and why our views of older women have changed.

The post Our Shifting Views Of Older Women Throughout American History appeared first on Buy It At A Bargain – Deals And Reviews.

5 Outstanding Business Loans for Women with Bad Credit

And Other Options for When Business Loans for Women with Bad Credit Aren’t Enough Bad credit can feel like a death sentence for your business. It can make it seem as though you have reached a dead end before you ever get started. This is especially true of women owned businesses as it is already … Continue reading 5 Outstanding Business Loans for Women with Bad Credit

5 Outstanding Business Loans for Women with Bad Credit

And Other Options for When Business Loans for Women with Bad Credit Aren’t Enough

Bad credit can feel like a death sentence for your business. It can make it seem as though you have reached a dead end before you ever get started. This is especially true of women owned businesses as it is already more difficult for females to get business funding. The truth is, there are ways to move past a bad credit hump. It takes getting creative with funding and a lot of hard work, but it is possible. Not only are there options like crowdfunding and grants that are not dependent on credit at all, but there are even business loans for women with bad credit.

Most lending institutions are not going to be looking to extend a business loan to those without a good credit score. This is because they genuinely have no clue if your company will be able to repay the loan.

Some non-traditional lenders, however, will take a look at other factors to help them determine risk, meaning even if you don’t have the best credit, you can still get a business loan. These factors may include length of time in business, annual revenue, or any number of things.

Others simply work on a different model than traditional lenders. Following are our top examples of each.

Top Outstanding Business Loans for Women with Bad Credit

Of course, this isn’t an exhaustive list, but it is a list of the 5 best loans for women with bad credit that we have found.

Business Loans for Women with Bad Credit: Lending Club

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One benefit LendingClub offers with their small business loans than many others do not is access to a client advisor. This is someone to help you figure out how to best use your business loan funds, as well as how to budget loan payments.

Business Loans for Women with Bad Credit: Lendio

Business Loans for Women with Bad Credit: Blue Vine

Business Loans for Women with Bad Credit: Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from than that of traditional or even other non-traditional lenders. It is sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.

Business Loans for Women with Bad Credit: Grameen

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Other Options

Sometimes, even if you can find business loans for women with bad credit, it just isn’t enough. There are other options that can help you bridge the gap between what you are able to borrower and the amount of funds your business actually needs to survive.

Merchant Cash Advance

If you own an existing business that takes credit card payments, a merchant cash advance can be a legitimate option. It works like this. The lender takes a look at your daily credit card sales and extends a cash advance based on that average. While they may check your credit, it rarely makes a lot of difference because the security for the loan is payments from future credit card sales.

The main difference that a low credit score might make is related to terms and interest rate. For example, a low score could result in a higher interest rate, or in payment drafts from credit card sales bi-monthly rather than monthly. Sometimes with a merchant cash advance, payments drafts are weekly or even daily.

Grants

There are a number of grant opportunities available for women business owners as well. While they are all competitive programs, they are definitely worth applying for to help support and grow your business.

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions.

Eileen Fisher Women-Owned Business Grant

Amber Grant

#GIRLBOSS Foundation Grant

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business acumen, planning, innovation in the field, financial need, and where they plan to work.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 women entrepreneurs from around the world each year. Women business owners who are just getting started may qualify. Go here for the complete application information for this small business grant.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship, business coaching seminars, and be exposed to networking opportunities.

How to Keep Bad Credit from Being a Problem in the Future

If you are looking for business loans for women with bad credit, it is unlikely that you have a strong credit score. While this option will work for the present, it is important to ensure that going forward, bad credit is not an issue. There is no reason to stay stuck in a bad credit hole. There are ways to dig yourself out.

Credit Monitoring

Monitor your credit reports. Request a free personal credit report each year from Experian, Equifax, and Transunion. Look at what is being reported, and deal with any mistakes as soon as you can. You also need to keep an eye on your business credit. We can help you monitor that at Experian and Dun & Bradstreet, the two most common reporting agencies, for only $24/month. See: www.creditsuite.com/monitoring.

You can monitor your business credit at the reporting agencies directly, but it is more expensive to do so. For example, Experian and Equifax cost about $19.99 each, and D&B ranges from $49.99 to $99.99.

What’s are you looking for? You are looking for mistakes on your report. Errors on your personal credit report(s) can be corrected, but you have to dispute in a certain way. Generally, this means you mail a paper letter with copies of any proof of payment. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies.

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Itemize any charges you challenge, and make your letter as clear as possible. Be specific about the concerns with your report, and use certified mail so that you will have proof that you mailed in your dispute.

Business credit disputes can be handled as follows.

Dispute your or your business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs

You can dispute inaccuracies on your or your company’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.

D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex.

Fund Your Business Without Using Your Personal Credit Score

This is also an option for those seeking business loans for women with bad credit. You do not actually have to use your personal credit score at all. Your business can have a credit score all on its own. If you are not sure you have a business credit score, then you likely don’t. You kind of have to be intentional with how you set up your business for that to happen.

For example, you need and EIN, a D-U-N-S number, and a few other things before you can have business credit. Your business has to appear as a separate entity from yourself.

What Does Your Business Need to Be a Separate Entity?

A professional-looking website and email address. The website address needs to be bought from a supplier such as GoDaddy. In addition, the email address needs to have the same URL. It shouldn’t be a from a free email platform like Yahoo or Gmail.

A company telephone and fax numbers that is different from your personal numbers, and they need to have a listing on ListYourself.net.

Additionally, the company phone number should be toll-free (800 exchange or comparable).

A business bank account devoted strictly to the company is always a must.

To be a formal corporation. This means organizing as an LLC, S-corp, or corporation. You cannot operate as a sole proprietorship or partnership and build business credit properly. Base the option you choose the level of protection and the tax benefits that you need. For company credit report purposes, they all work the same.

Once you have these things in play, any payments you make on accounts in your business name using your EIN will be reported to the business credit reporting agencies in your business name. This is how business credit starts to grow, and you can eventually leave your personal credit out of the mix.

You Have Options: Business Loans for Women with Bad Credit Really Do Exist

Business loans for women with bad credit are out there. We gave five outstanding places to get started. However, there is more to the business funding process than just finding a loan despite bad credit. You have to have a plan to overcome the bad credit in the long term.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

The best way to do that is to ensure you pay all accounts on time, consistently. In addition, work on building your business credit so that you do not have to depend on your personal credit for business funding.

Do not underestimate the importance of this. By using your business credit to fund your business, you keep large business expenses, or business issues, from affecting your personal credit score. This means despite what is going on business-wise, you can still maintain the credit you need to buy a home, a car, do home improvement, etc.

Consequently, if you run in to personal credit issues, your business credit can remain unaffected. This means your business can continue to run successfully despite a poor personal credit score.

The post 5 Outstanding Business Loans for Women with Bad Credit appeared first on Credit Suite.

3 Common Sense Ways to Get Start Up Business Loans for Women

And a Bonus Secret that Will Help Get Start Up Business Loans for Women More Easily

There is a storm brewing in the distance. Can you see the clouds building? Can you hear the thunder rolling? There is electricity in the air. Animals are acting strange. They know the tide is turning. Women are taking the business world by storm as more and more women owned businesses are starting up each year. As a result, more and more are looking into start up business loans for women.

The problem is, despite the growth in women owned businesses, females still seem to get an unfair slice of the funding pie. For some reason, women and women owned businesses are seen as a greater funding risk than men and businesses owned by men.

How then are female entrepreneurs ever supposed to get up and running? While we cannot erase a sexist system overnight, a lot can be said for being completely prepared when going to apply for a startup loan. If the choice is between a female applicant that has all her ducks in a row and a male applicant that just threw things together, then the female applicant at least has a better chance than she would otherwise. Consequently, it pays to be prepared.

Here are 3 Common Sense Ways to Get Start Up Business Loans for Women

There are a lot of things that any borrower can do to make their odds of loan approval higher. Here are just a couple:

Learn business loan secrets with our free, sure-fire guide.

1. Get Your Finances in Order

Every lender is going to need to see a number of things related to finances to ensure you are able to repay the loan. Most noteworthy are the following:

All income sources
Balances of all bank accounts
Any other assets, income producing or not
Tax returns for the past three years

Certainly, if you are planning on getting a secured loan, they will need all the information on whatever assets you intend to use for collateral. That means titles, liens, registrations, etc. Having these things ready to go can be very beneficial to you during the application process. It can make things go much smoother.

2. Have an Awesome Business Plan

This often gets missed, even though it is vitally important. You can’t just throw it together, even more so when looking for start up business loans for women. Sometimes an application will have a series of questions or a template to fill out meant to act as a business plan, but this is not what you want to use.

A professional small business development plan should include:

The Overview

An Executive Summary – This is a complete summary of the business idea.

Description – The description goes into further detail than the summary, describing the business. What type of business is it? What product or service will it offer? This is where you work to get others excited about your business.

Strategies – Lay out your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan?

The Plan

Market Analysis – This actually includes two parts. All that market research you did goes here:

o Analysis of audience: What need will your business fill, and for who? How will your business fill the need? This is where you will include that information.

o Competitive Analysis: Is there a business already filling this need? Is there room for more? What makes your business better than theirs?

Plan for Design and Development – How is all of this going to play out, from start to finish. Step by step, what are you going to do? This section includes more detail than the strategies section.
Plan for Operation and Management – Who will own the business and who will handle daily management? This could just a statement that you are the only owner and the manager, or it could be a complete plan for a partnership plan or board or directors’ format. It depends on how you intend for your business to work. Will you be the hire a manger? This is you would say that.

Show Them the Money

Financial Information – A lot of new business owners get lost here. How do you have financial information if there is not a business yet? This is where you detail your funding plan. How much money do you have? Where did it come from? How much more do you need? How will you use the funds? A complete set of financial projections will go here also, typically for out to at least five years in the future. If possible, it is best to have an accountant compile your projections.

To get ahead of the competition even further, hire a professional business plan writer if you can. They can work with you to gather all the necessary information and compile it into the traditional, acceptable format. As someone trying to get start up business loans for women, you need every advantage you can get.

If you cannot hire a business plan writer however, there are a number of resources that can help you. The Small Business Administration offers a template, and your local small business development center can help as well.

Learn business loan secrets with our free, sure-fire guide

3.Get Certified as an Official Woman-Owned Small Business

This tip is unique to women owned businesses, meaning it is another advantage you can have over businesses run primarily by male entrepreneurs. While this certification does not mean you are guaranteed anything in the realm of start up business loans for women, it could be a determining factor depending on what variables the lender may be working with.

How to Get Certified

There are two options for businesses who wish to qualify as a certified woman-owned small business (WOSB). The Federal Contract Program will let business owners self-certify. The other option is to work with one of the four SBA approved third party certifiers. There is no advantage of one over the other, except that it is free to self-certify, while there is a fee for a third-party certification.

What is Required to Self-Certify?

The first step is to look over the requirements for eligibility. Number one is that a business must have one or more women who are U.S. Citizens in control through ownership (at least 51%) and management. They cannot just be an owner but the primary manager be male, nor can the primary manager be a female but the owner be a male. This ownership must be direct and non-conditional. The day to day of the business has to be handled by a woman, and a woman must make the long-term decisions related to the business. In addition, the female must hold the highest position of office and cannot be employed outside of the business. This woman must also work full time during business hours to qualify.

What Does Certification Get You?

The certification program is designed to make women owned businesses more visible as such. It doesn’t afford these businesses any sort of special treatment and it is not a charity program. It can, however, make them stand out to those contractors and lenders who are working to reach goals specific to certain types of businesses, including those owned by women.

Where are These Loans?

Okay, so if you are looking for start up business loans for women, you probably think a traditional bank is your only option. It’s really not. In fact, depending on your situation, it may not even be your best option.

The thing about traditional loans from standard lending institutions is that you generally need to have security, a lot of income, and a stellar personal credit score. If you have all that, great! However, many entrepreneurs looking for start up business loans for women do not have all three of these things. That can make getting loans from a regular bank difficult.

Non-traditional Lenders

These are lenders that generally function online only. In addition to faster processing and approval times, meaning you get your funds faster, they also often have less stringent credit and income requirements. It is actually often easier to get start up business loans for women from a non-traditional lender.

The thing to remember is few lenders offer loans specifically for women. The key is to overcome the gender gap in business loan approvals as a whole.

Where Are the Best Places to Look for Start Up Business Loans for Women?

Learn business loan secrets with our free, sure-fire guide

You need to shop around for the best options for your specific business, but this list is a great place to start.

Grameen

Microloans are a great option for start up business loans for women, and Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

Payments are reported to Equifax and Experian, meaning these loans help borrowers build their credit.

SBA Partner Lenders

These are going to be traditional lenders that partner with the Small Business Administration to offer loans to those that may not typically qualify. The SBA does not offer loans themselves, but rather they secure loans for borrowers with partner banks, thus allowing for a little more wiggle room when it comes to income and credit score.

That doesn’t mean these loans are easy mind you. While interest rates are typically lower, and the minimum credit score is somewhat lower than what a bank would typically require, the application process is notably lengthier and more complex. The reduced interest rate and lower credit minimum makes it a good option for start up business loans for women however.

SBA Loan Programs

There are multiple loan programs available through the SBA. The best option for many women as far as startup loans is the SBA microloan program. Similar to Grameen, it offers smaller amounts of money, up to $50,000, for micro businesses and startups.

Kiva

Kiva is a rare bird. They offer loans to businesses, but their platform is much different than that of traditional or even nontraditional lenders. It is a breed of its own. Rather, it is sort of a cross breed between crowdfunding and lending. They offer loans with a 0% interest rate. Even though you have to pay it back, it is absolutely free money. They do not run a credit check either. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you yourself have to give at least a $25 loan to another business on the platform.

Bonus! Use All Available Resources

Since we already gave you three ways to get start up business loans for women, I’ll offer up a bonus tip. Use all the resources available to help you find all the funding you need. There are a ton of places to find support, networking, and even money to help you get your business off the ground and growing.

Office of Women’s Business Ownership

This agency helps female entrepreneurs by offering programs that SBA district offices coordinate. These programs include counseling, federal contracts, business training, and access to capital and credit.

Women’s Business Centers (WBCs)

These centers seek to level the playing field for all women entrepreneurs, who still face unique obstacles in the business world.

National Women’s Business Council (NWBC)

This is a federal advisory council that is non-partisan in nature. It serves as a source of advice and counsel to the Small Business Administration, Congress, and even the President. It is the government’s only independent voice for female business owners.

All it Takes to Find Start Up Business Loans for Women Is a Little Common Sense

Here is what it boils down to. There are not a ton of startup loans specifically for women, but there are some ways that women can increase their chances of loan approval with just a little common sense.

Know what lenders are looking for and be prepared.
Have a killer business plan that is both complete and professional looking.
Get certified as a woman owned small business.
Bonus! Use all the resources available to you.

Of course, business credit can do a lot to boost your chances as well. And find out more about building business credit.

The post 3 Common Sense Ways to Get Start Up Business Loans for Women appeared first on Credit Suite.

Amazing Funding for Women Owned Businesses

The Best Funding For Women Owned Businesses

We scoured the internet for the very best funding for women owned businesses. There are a number of fantastic choices which women can make use of today.

Funding for Women Owned Businesses: Collateral-Based Financing

Collateral-based financing offers low rate financing. Personal credit quality and profits don’t determine your approval. Some accepted collateral includes:

Account receivables and purchase orders
401k, IRA, stocks, and bonds
Inventory
Equipment

The idea behind collateral-based funding is that a lender needs an assurance. For the creditor, a great assurance that you will pay back funding is when your property is at risk if you don’t.

Funding for Women Owned Businesses: Cash Flow and Unsecured Financing

Cash flow financing is another great loan program for women, if you’ve been in business one year or more and have $10,000 in monthly revenue.

Unsecured financing is readily available for female small business owners, for up to $150,000. You can get an approval if you have good personal credit, and get 0% intro rates for 6-18 months … even as a startup.

Funding for Women Owned Businesses: The Small Business Administration

The SBA offers some terrific loan programs including their 7( a) loan for working capital. To get approved you’ll have to have:.

3 years of company and personal tax returns
Good personal, business, and bank credit
Collateral for 50-70% of what you’re borrowing

SBA Express

The SBA Express program is a great loan program for women. You can get approved for a loan up to $350,000. Get rates of 4.5-6.5%. Get a line-of-credit good for 7 years. No collateral is required for up to $25,000. There is a turn-around in 36 hours.

SBA’s Women’s Business Centers

They can help you get access to capital. See: https://www.sba.gov/tools/local-assistance/wbc

Funding for Women Owned Businesses: Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE)

For women who are also military veterans, the Veterans Women Igniting the Spirit of Entrepreneurship (V-WISE) is an SBA funded program offered by the Institute for Veterans and Military Families which includes online training, a conference that utilizes the unique team spirit of women veterans and female military spouses, and follow-on mentoring through a community of partners.

Funding for Women Owned Businesses: Amber Grants

$1,000 to a different women-owned business each month. At the end of the year, one of the monthly grant winners gets $10,000 more. See: https://ambergrantsforwomen.com/get-an-amber-grant/

Funding for Women Owned Businesses: Alternative Lenders

If you have decent personal credit and tax returns for 2 years that show a profit, alternative lenders have programs that could work. You could be approved with rates of 7% or lower. Lenders will need to see some kind of profit on your tax returns.

There’s also business credit building!

Learn more here and get started toward building business credit.

Funding for Women Owned Businesses: Small Business Credit Building

Business credit is credit in a company’s name. It doesn’t attach to an entrepreneur’s consumer credit, not even if the owner is a sole proprietor and the only employee of the company.

Accordingly, a business owner’s business and personal credit scores can be very different.

The Advantages

Considering that company credit is distinct from individual, it helps to secure a business owner’s personal assets, in the event of court action or business insolvency.

Also, with two distinct credit scores, an entrepreneur can get two different cards from the same merchant. This effectively doubles purchasing power.

Another benefit is that even startup companies can do this. Heading to a bank for a business loan can be a recipe for frustration. But building business credit, when done properly, is a plan for success.

Individual credit scores rely on payments but also various other considerations like credit usage percentages.

But for small business credit, the scores actually merely hinge on if a company pays its bills promptly. It is a terrific source of funding for women owned businesses.

The Process

Growing small business credit is a process, and it does not occur automatically. A business has to proactively work to establish company credit.

Nonetheless, it can be done easily and quickly, and it is much speedier than developing individual credit scores.

Vendors are a big aspect of this process.

Carrying out the steps out of order will cause repetitive rejections. Nobody can start at the top with small business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Company Fundability

A small business needs to be fundable to lenders and merchants.

Hence, a company will need a professional-looking website and email address. And it needs to have website hosting from a merchant like GoDaddy.

And also, business telephone and fax numbers need to have a listing on ListYourself.net.

Also, the company phone number should be toll-free (800 exchange or similar).

A business will also need a bank account devoted solely to it, and it must have every one of the licenses essential for running.

Licenses

These licenses all must be in the correct, appropriate name of the company. And they must have the same small business address and telephone numbers.

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Learn more here and get started toward building business credit.

Dealing with the IRS

Visit the IRS website and get an EIN for the small business. They’re free of charge. Pick a business entity like corporation, LLC, etc.

A business can start off as a sole proprietor. But they will more than likely want to change to a form of corporation or an LLC.

This is in order to decrease risk. And it will make best use of tax benefits.

A business entity will matter when it involves tax obligations and liability in case of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and taxes. No one else is responsible.

Sole Proprietors Take Note

If you operate a business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the company name. Because of this, you can wind up being directly accountable for all small business financial obligations.

Plus, per the IRS, by having this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and noticeably decrease the odds of an IRS audit as well.

Kicking Off the Business Credit Reporting Process

Start at the D&B website and obtain a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the company. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

This way, Experian and Equifax will have activity to report on.

Vendor Credit Tier

First you must build trade lines that report. This is also called the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start to get credit in the retail and cash credit tiers.

These kinds of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, instead of revolving.

So, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To launch your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting agencies. Once that’s done, you can then use the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Helps

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with minimal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than one time to these vendors. So, this is to demonstrate you are dependable and will pay promptly. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then progress to the retail credit tier. These are service providers which include Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

One example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or more.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are companies like BP and Conoco. Use this credit to buy fuel, and to repair, and maintain vehicles. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the small business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411 small business telephone listing.

Shell may say they want a certain amount of time in business or profits. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get an approval.

Learn more here and get started toward building business credit.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then progress to the cash credit tier. These are service providers like Visa and MasterCard. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

In addition, they want you to have an established small business.

These are companies such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are usually MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any inaccuracies as soon as possible. Get in the habit of taking a look at credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Equifax will cost about $19.99.

Update Your Data

Update the information if there are inaccuracies or the info is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to contest any mistakes in your records. Mistakes in your credit report(s) can be fixed. But the CRAs generally want you to dispute in a particular way.

Disputing credit report errors commonly means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always send copies and keep the originals.

Fixing credit report errors also means you precisely detail any charges you contest. Make your dispute letter as understandable as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about Building Business Credit

Always use credit smartly! Never borrow beyond what you can pay off. Keep track of balances and deadlines for payments. Paying off on time and fully will do more to boost business credit scores than pretty much anything else.

Growing company credit pays. Excellent business credit scores help a small business get loans. Your lending institution knows the company can pay its financial obligations. They know the business is for real.

The small business’s EIN connects to high scores and lenders won’t feel the need to call for a personal guarantee.

Funding for Women Owned Businesses: Takeaways

Get creative and grab the best funding for women owned businesses around!

The post Amazing Funding for Women Owned Businesses appeared first on Credit Suite.

Business Loans for Minority Women and So Much More

Business Loans for Minority Women: The Truth

Business Loans for Minority Women: Traditional vs. Private

The Small Business Administration

7(a) Loans

504 Loans

Microloans

SBA Express Loans

Other SBA Resources

Business Loans for Minority Women: Private Lenders

Lending Club

Lendio

Blue Vine Business Loans for Minority Women

Kiva

Grameen

Other Resources for Women

National Female’s Service Council

Other Tools to Consider

Don’t Forget to Look into Grants to Supplement Business Loans for Minority Women

Amber Grant

#GIRLBOSS Foundation Grant

Cartier Women’s Initiative Award

Grants for Minorities

First Nations Development Institute Grants

National Black MBA Association Scale-Up Pitch Challenge

Non-Minority or Female Specific Options

FedEx Small Business Grant

NASE Growth Grants

USDA Value Added Producer Grant

Business Loans for Minority Women and Other Helpful Resources

Is There a Secret Sauce to Finding Small Business Loans for Women?

Small Business Loans for Women: The Small Business Administration

7(a) Loans

504 Loans

Microloans

SBA Express Loans

Small Business Loans for Women: Private Lenders

Lending Club

Lendio

Blue Vine

Kiva

Small Business Loans for Women: Other Resources that Can Help

Association of Women’s Business Centers

National Association for Female Executives

National Association of Women Business Owners

SCORE

Small Business Loans for Women: A Better Option

Start with the Foundation

Don’t Use Personal Contact Information for Your Business

Dump the SSN for an EIN

Get Incorporated

Open a Business Bank Account

Licenses

Website

Small Business Loans for Women: What Else Makes a Business Fundable?

Business Credit Reports, Business Credit History, and Credit Score

Other Business Data Agencies

Identification Numbers

Business Information

Financial Statements

Bureaus

Personal Credit History

The Application Process

There is More to Funding than Finding Small Business Loans for Women

Small Business Loans for Minority Women Come in All Shapes and Sizes, Find the One that Will Work Best for You

First Stop: The Small Business Administration

7(a) Loans

504 Loans

Microloans

SBA Express Loans

Other SBA Resources

Second Stop: Private Lenders

Lending Club

Lendio

Blue Vine

Kiva

Grameen

Bonus Stop: The Grant Spur

Amber Grant

#GIRLBOSS Foundation Grant