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A guide to helping you understand and compare business loans for women
A complete guide to business loans for women
A growing number of women are starting their own businesses, driven by desires to be their own boss and follow their dreams. However, in the search for success many businesses require additional capital at various stages, which can be hard to raise.
If you are looking to raise capital, there are a variety of potential grants, resources, mentorship programs and business loans for women. Here at Business Comparison, it is our aim to support businesses in their search for small business loans for women, with access to competitive finance which meets their exact requirements.
Which business loans for women are available?
Our handpicked panel of lenders have been selected based on their ability to provide competitive and flexible finance, such as a wide range of business loans for women. Whatever industry you operate in, we can offer a variety of women entrepreneur’s loan options, with both unsecured and secured finance options available.
The array of lenders we work with includes traditional high street banks, online lenders and alternative lenders such as those which specialise in peer to peer finance. With the largest panel of lenders available online we can assist you in securing finance such as, a traditional business loan, asset finance, invoice finance, merchant cash advance, or even a commercial mortgage.
Through our range of loan options, you could borrow anything from £1,000 to £20,000,000, with terms and interest rates to suit your unique business requirements. Fixed-term loans are available as either short-term options which you repay in less than a year, or long-term commitments which are repaid over a number of years. As one of the most common forms of business loans for women, fixed-term loans are available with terms and interest rates to suit your financial position.
Another popular business loan for women is a line of credit, as the flexibility is ideal for use as start-up business loans for women and also established businesses. The finance is designed to provide access to a set amount of money, with the business only needing to spend what they need. This flexibility means your business will only need to pay interest on the amount you have borrowed. In many ways this type of loan is similar to a credit card or overdraft, so is ideal for those who are already familiar with the way this form of credit works.
Depending on the way you accept payments it may be possible to apply for either invoice financing or a merchant cash advance. These loans are designed to provide you access to capital before an actual payment is made to you. For example, if you have already provided a product or service and are awaiting payment, it may be possible to obtain an advance on the amount by selling the invoice to an invoice financing company. Alternatively, a merchant cash advance loan will provide you with a lump sum that is then repaid when customers pay your business using a PDQ machine.
How to find the most competitive business loans for women
Our finance finder tool is designed to help you search the available business loans for women, so that you have access to the most flexible and competitive terms. Our tool will ask you a variety of questions relating to your current financial situation, the amount you need to borrow and when you will be able to repay the loan.
This information will be carefully analysed by our system, which will then provide you with a list of lenders and various financial products, such as small business start-up loans for women. These will be listed in order of how well they match your requirements, their interest rate and repayment terms. By clearly displaying the available options it will be quick and easy to compare the business loans for women.
How to apply for business loans for women
Our finance finder will display a clear list of potential business loans for women, which will guide you towards a quick and simple application process. The specific type of loan you are applying for will dictate what type of information you need to provide during the application.
Although, almost every lender needs to know details about your current trading patterns, how much you need to borrow and what the funds will be used for. To ensure the lender has the information they need to quickly process your loan application it can be helpful to prepare your financial documents in advance.
In many situations, if the lender has the information they require, loans can be released in under 24 hours which means you could have access to the funds your business needs very quickly.
Who is eligible for business loans for women?
During the underwriting process the lender will examine your application against their criteria, which can vary significantly between the variety of loan options available. In general, the ideal application will possess strong financial accounts, a good monthly turnover and an excellent credit rating. Although in reality, this isn’t always the case and lenders can provide business loans for women with bad credit, who may not be in the perfect financial position.
If your business has a poor credit rating, it will be a high-risk for the lender to provide you with a loan. To offset some of this risk you may be charged a higher rate of interest or be provided with a shorter loan term than requested. This means the lender will be able to recoup as much of the loan as possible in a short space of time. However, if you have a good credit rating the lenders will be keen to offer you finance, with your low-risk position attracting the most competitive interest rates and flexible terms.
In some situations you may be asked to provide the lender with security, which reduces the risk in loaning to you. If your business is cash poor but owns high-value assets, you may be able to unlock this value by using them as security. The most common forms of collateral are vehicles, stock, machinery and property, although almost any physical asset can be used as collateral for a loan.
If the business does not have assets to provide for security, it may be possible to provide a personal guarantee if your own credit rating is good. This personal guarantee will mean that if repayments are missed, you will be personally responsible for repaying the debt. The guarantee could require you to use your own personal assets as security which you could risk losing if the secured loan falls into arrears.
Many alternative lenders will consider aspects other than your finances when assessing your application. By getting to know your business and its plans for the future, in addition to your own capabilities, it may be possible to convince a lender that you can be trusted to repay the loan. The best way to do this is to compile a detailed business plan, which explains why you need business funding for women, how it will be used and also proves that you will be able to meet the repayments.
If your business is searching for competitive forms of finance, our team will be happy to discuss the various loans available to you. It is our mission to help you compare the best business loans for women, so that you have the funds you need to grow and expand your business. To find out more, please contact our experienced team today.
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