When you are a business owner trying to get your plans moving, it’s impossible to get anything done without access to capital. This is one of the fundamental challenges of entrepreneurship because you have to convince a bank or other capital provider to make you a loan at a reasonable rate while developing a business plan that will provide enough revenue to pay back the loan.
As a woman running her own business, you face even more difficulty because of the skepticism that some people will have to your leadership, skills, and ability. To overcome that bias, you need a source of capital, small business loans for women that recognize your value and will get you the capital you deserve.
Importance of Business Capital
It’s hard to find an example of a successful business that did not get off the ground with either a loan or an investment that involved buying some ownership in the company. As an entrepreneur, it is more attractive to attempt to take on loans so that you do not need to give up any ownership at such an early point.
Getting a loan is difficult because you need to demonstrate that you will be able to pay the loan back, but your business is too young to provide direct proof of that ability. You will need to present a business plan and make a pitch to potential lenders. This comes down to crafting the right ideas and demonstrating that you will have revenue and growth over the course of the loan.
Think of it this way. The lender will provide you with a loan at a certain interest rate, such as 5 percent. For you to succeed in paying the lender back, you will need to spend that money on projects and expenditures that will get you at least 5 percent return on the investment. If you get more, then that is profit that you can take home and reinvest.
All of this means that you need to be able to model how well the loan money will go to work for your company, what it will do, and how much you expect to make from it. The more information and detail you can provide on this, the better. Lenders want to see that you have put effort and thought into planning out exactly what this money will do and researching how well it will succeed.
To that end, crafting the right pitch is a delicate blend of realism about the prospects of the company and optimism to inspire them to believe in your business model. You will need to prove that you can be successful, but that you also understand what that takes and how difficult it can be.
Applying for a commercial or business loan in Florida takes time. You will generally need to fill out some paperwork before even interacting with a representative from the lender. The most common choice for a lender is a bank, but banks tend to have lengthy application processes and high standards for making loans. Ever since the financial crisis of 2008 and the subsequent regulation, it has been harder to get a loan from a bank. They have a more regulatory compliance that they must carry out and they are reluctant to risk their money.
In light of these obstacles, many small business owners have begun turning to non-bank lenders. They have a more streamlined application process and are more willing to listen to business owners. Often, commercial loans are their only business, so they can devote all of their time and attention on their business clients. That is a good thing for entrepreneurs, because it means that they get better relationships and more reliable access to capital.
When it comes to business loans in Florida from non-bank lenders, GoKapital should be on the top of any founder’s list. It’s a company with years of experience lending all over the US, and they specialize in business loans. In fact, they are prepared to lend to people even if they have poor credit histories.
The company has a wide variety of different loan products to cover the needs of different businesses. For example, a traditional small business loan is just what it sounds like. On the other hand, a merchant cash advance is not a loan at all- it is selling future revenue in exchange for up-front cash that can pay off bills, other loan payments, or similar expenses. Many of these loan products have turnaround times of under 24 hours and an approval rate of over 90 percent.
GoKapital for Women
- GoKapital has an entire category for female business owners to provide them with expedited service and additional consideration. The government has recognized that many more women than ever before are starting their own businesses, and the Small Business Administration is stepping up their efforts to lend to women. GoKapital is proud to participate in this trend by providing women-owned businesses with targeted capital products to help them get their business models running.
- A successful application for this kind of loan will demonstrate careful research into your own business and its needs as well as your competition. Show how the loan would specifically add to your revenue and the strengths, weaknesses, opportunities, and threats for your company. Keep in mind that a business loan is not just a one-off transaction. Ideally, it is the beginning of a long-term and productive relationship with a lender that can get you good access to working capital and another financing when necessary.
- The bottom line is that every small business needs capital. That can come in many forms- an injection of cash to get things going, working capital for ongoing needs, and more. Starting a business means coming up with ways to tap into capital sources and put that capital to productive uses.
- GoKapital is a good place to start if you are turned off by bank lenders due to their high requirements or long application process. The inclusion of small business loans for women is a welcome change to the industry.
- 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 business. The post-recession economy has seen a boom in small business ownership, especially among women, so GoKapital is on top of the market.
Whether you choose them or not, you’ll need to build a relationship with a capital provider sooner rather than later for a healthy business.