4 Ways On How To Avail Of Start-Up Business Loans For Women
One of the main obstacles when it comes to starting a new business is where to get enough funding.
This is especially true for a lot of aspiring women entrepreneurs. However, if you are a woman, you should not lose hope because there are several avenues where you can get the funds that you need.
Discussed below are four of the best ways on how to avail of start-up business loans for women. Most entrepreneurs use these to fund their new ventures.
Secured Business Loans
This is a great option if you own a piece of valuable real estate which you can use as your collateral.
It’s called a secured business loan because you are using a piece of property as a way of providing security to the interests of the lender. Basically, if you can’t pay for your loan on time, the collateral you put up will be used as payment.
This is usually done through a bank. An important reminder in this type of loan is that you have to be fully aware of the value of your property.
For instance, you shouldn’t put up a piece of property worth one million dollars to get a loan of 100,000 dollars. It’s best that you seek the help of an experienced appraiser before you sign the loan agreement.
Unsecured Business Loans
In the surface, this type of loans looks very attractive because you don’t have to put up something as collateral.
However, you will have to pay for an interest rate that is much higher compared to a secured loan. And one more thing, this type of funding is usually given for women who have a solid financial background and an excellent credit history.
This is a great option if you are planning to start a small business that won’t require a huge amount of funding.
Most microloans are worth about $15,000 to $35,000.
Another feature of microloans is that repaying the borrowed funds have a very specific time-frame which you must follow.
In addition, you can avail of microloans from intermediaries who have been approved by the Small Business Administration or SBA.
There are dozens of grant programs out there being offered by the government as well as by non-profit organizations.
You have to apply for the grants and convince the providers why you deserve to be given a grant. Grants have a lot of benefits because they come with very low interest rates.
Some of them even have zero interest rates.
These three sources are four of the best ways on how to avail of start-up business loans for women.