In 2018, women own about 40 percent of businesses in the United States. Experts estimate that women create about 1,821 businesses every day. This number should stay on the rise.
Are you a Wonder Woman who opened your business? Maybe you’ve been a business owner but, don’t know how to cope with the increase in demand for your services. Either way, the key to taking your business from zero to hero is securing the right business financing.
You may be hesitant to apply for funding thinking you may not get approved. Yet, there are simple and accessible ways to finance a business. Not sure where to start?
We’ve got you covered. We’ll tell you everything about the best and easiest ways to fund your business to take it to the next level. Read on to get your financing Wonder Woman cape today.
How to Finance a Business: Best Options to Put on Your Wonder Woman Cape Today
Becoming a successful mom or woman entrepreneur requires more than finding your work-life balance. To build a successful business, you must get creative with your funding.
You might’ve asked yourself how to fund a business with no money. There isn’t a one-size-fits-all rule to secure the right funding.
Your financing must meet your business needs. The right funding option will fit your budget and provide the best rates. Not sure what funding options you should consider?
Here are 6 ways that make financing your business as easy as pie.
1. Business Credit Cards
Business credit cards are a great option to jumpstart your business. But, only if you don’t need a lot of funding to get started. Banks will ask you to submit your personal and business information.
Keep in mind that to be eligible for this type of funding, you will have to register your business. Financial institutions will ask for the certificate of incorporation or your DBA. Some lenders even offer an introductory rate of 0 percent interest during the first 12 months.
You might have heard about Kickstarter before but think it will only work when you have a million-dollar idea. Yet, you can seek funding for anything on crowdfunding platforms such as GoFundMe, Indiegogo, Crowdrise, among others.
Did you know that there are crowdfunding platforms to fund women-owned businesses? Some platforms you should consider are iFundWomen, Fund Dreamer, and Women Should Fund.
If you’re still thinking twice about this financing option, you should know that experts found that women have greater success in securing funding on these platforms.
The key to securing the funding you need by using crowdfunding is telling your story and using all the resources available. Don’t just post your crowdfunding campaign and hope to secure enough money to make it work. Harness the power of social media to get the word out.
Look at your crowdfunding like a revolving door board meeting with investors. You must tell your investors in your campaign site why they should help you make your dream come true.
3. Business Loans
Today, business loans are a lot more flexible than before. While some lenders may have strict approval requirements, you may find the right funding by applying for a business loan.
Lenders such as Dealstruck offer flexible term loans. If it’s the first time you hear about this type of loan, you may be eligible for up to $500,000 in funding depending on your lender. Some of the typical requirements for these loans are being in business for more than a year and a business annual revenue of $150,000 or more.
Keep in mind that these requirements may vary on a lender basis. If you’re looking for a way to take your operating business, a business loan may be your best option.
It’s important to have a clear plan of how you will use your funding. Having a great business plan will improve your chances of approval.
4. Business Lines of Credit
If your business requires making large purchases, getting a business line of credit may be your best option. Lines of credit provide flexible and easy access to revolving credit. You can use the line to make big purchases such as inventory and only pay interest on the funds you draw.
You may be asking yourself why should you apply for a line of credit instead of a credit card? While both types of financing are similar, your bank may approve a higher amount if you apply for the first one.
The requirements for lines of credit may be different from other types of funding. You should consult your bank before applying to make sure you meet their minimum requirements.
5. SBA Loans
While your financial institution might deny your business loan, you may be able to secure an SBA loan. The Small Business Administration (SBA) has several loan programs for small businesses. The bank will give you the loan but SBA will guarantee a portion of your loan in case of default.
Since the government backs your loan, many lenders are open to working with you. SBA offers from microloans to working capital loans. Your eligibility will depend on your finances, loan amount, and meeting their requirements.
6. Online Loans
If your credit score is less than stellar, you shouldn’t let that stop you from making your dreams come true. Online loans may be your best funding option. These lenders provide fast funding and work with most customers.
You may be eligible for short-term and medium-term financing. Your loan terms and conditions will depend on their requirements and the amount of funding you need. It’s recommended that you research your potential lenders before applying for your online loan.
Will Finding the Right Business Financing Help You?
Yes, finding the right business financing will help you make your dreams come true. Becoming your own boss may have been your dream for a long time. But, lacking the funds to open your business may have put a halt on your plans.
If you find the best option for financing a business, you can start your company without risking everything. It’s recommended that you consider financing some of the funds you need even if you have enough savings. Also, securing the best funding can help you take your operating business to the next level in no time.
Now that you know how to secure the best financing options, are you still thinking twice about opening your business? Read our article on some small business ideas you should consider to become your own boss today.