For every business owner, having access to capital loans is crucial. That’s the easiest way for businesses to grow and expand. However, women-owned firms sometimes struggle to secure financing from traditional lenders such as banks and credit unions. GoKapital is committed to solving this problem by helping women open new companies, create millions of jobs, and compete in their industry. When it comes to small business loans for women, we can help every step of the way.
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How women can qualify for a business loan
We understand the many needs that female-owned small businesses have and the opportunities that are available to them. Drawing on this knowledge, our loan specialists will guide a business owner through the necessary steps to secure a loan. Our specialists will suggest the loan program that is suitable for her business. They will assist her in the application process as well. The main two things that we look at when evaluating a loan application are the time-in-business and the average monthly sales. To qualify for one of our small business loans for women, you must have at least four months in business and have an average of $100,000 in annual sales.
We might also require recent business bank statements.
4 Months in Business
New Business? Established business?
All we require is 4 months of operation.
$100,000 Annual Gross Sales
It doesn’t take a lot of money to borrow a lot of money
we simply require $100,000 in annual sales.
4 Months' Bank Statements
and a simple application gets the process started.
Why small business loans for women are so important
The amount of women-owned businesses grew significantly in the wake of the 2008 recession, and today they account for nearly four-in-ten of U.S. small businesses. In 2017, American Express issued The State of Women-Owned Businesses Report, stating that in the United States more than 11.6 million firms are owned by women. These female-owned businesses employ more than 9 million people and generate $1.7 trillion in sales.
Unquestionably, it is a great time to be a female entrepreneur.
However, despite the significant progress achieved by female entrepreneurs and the gender equality movement, research suggests that women in business still have to face many difficulties when running their own company. According to the Majority Report of the U.S. Senate Committee on Small Business and Entrepreneurship, the three primary challenges that women-owned businesses face are 1) getting access to proper business training, 2) getting equal access to federal contracts, and 3) getting fair access to loan programs.
It’s no secret that historically, banks’ decisions on loan applications have mostly benefited men. But, fortunately, that is rapidly changing. In 2016, the Consumer Financial Protection Bureau (CFPB) started investigating banks, venture capitalists, and lenders that discriminate women who own small businesses by not giving them business loans based solely on their gender. On the other hand, alternative lenders, like GoKapital, are more than willing to lend working capital to businesswomen based on a successful business track record, cash flow, and (if required) collateral.
To sum up, having easy access to small business loans and to working capital is not only convenient for the woman who owns the business but also for those who depend on them and for the economy.
GoKapital provides small business loans for women as a way to encourage female entrepreneurs to grow and succeed.
The best loan programs for women-owned small businesses
It is harder for women to secure business financing through traditional lenders. That’s when alternative lenders and loan programs come in handy.
As a female business owner, you have at your disposal a variety of alternative loan programs. Make sure you understand the pros and cons of every loan, as well as the terms and interest rates.
Keep reading to find out more about GoKapital’s loans programs available for women in business.
– Business line of credit
A business line of credit is a great option when you need fast capital. With a revolving line of credit from Gokapital, you can borrow up to a maximum amount and pay interest only on the amount you use. Also, our approval process is quick and easy.
– Merchant cash advance
Businesswomen that lack collateral, or have a poor credit score can apply for a merchant cash advance(MCA). When you are approved for a cash advance, the lender will give you a lump-sum of cash in exchange for a percentage of future sales processed through your merchant account.
– SBA loans
The Small Business Administration(SBA) doesn’t lend you the money directly, instead, they provide a guarantee against default to the lender for the money borrowed by the small business owner.
GoKapital is an authorized SBA lender.
SBA loans are government-backed loans to small business owners, with long terms and low-interest rates.
– Unsecured Business Loans
An Unsecured loan is a type of loan that doesn’t require collateral to obtain financing.
Eventually, every business needs to purchase, lease, repair, or upgrade its essential equipment to increase overall productivity.
Equipment can be stoves, ovens, tables and chairs, medical and dental machinery, computers, and even a backhoe. We finance machinery and equipment for every type of business.
Resources for Women-owned businesses
Several organizations work very hard with the only purpose of helping women entrepreneurs achieve their business goals and thrive. While some of these organizations might not provide funding, they have some of the best educational resources for female entrepreneurs looking for guidance.
Here are the best organizations dedicated to helping women in business:
The SBA’s Youtube Academy
GoKapital for Women
In the past, female owners have had trouble getting the same financing as their male counterparts due to discrimination as well as a lack of experience in the business. The post-recession economy has seen a boom in small business ownership, especially among women. The inclusion of loans for women is a welcome change to the industry. GoKapital is a great place to start if you are turned down by banks due to their high requirements or lengthy application process.
GoKapital is a company with years of experience lending all over the US, Canada, and Puerto Rico. We specialize in business loans. In fact, we are willing to lend to people who have a bad credit score.