SMALL BUSINESS LOANS for WOMEN
A growing business needs financing from time to time, regardless of who owns it. Women-owned businesses are increasing rapidly and hence there is a growing need for small business loans.
However, there are some exclusive challenges faced by female entrepreneurs when running their respective businesses. Besides, getting a small business funding to operate and cover day-to-day business expenses has become a complex affair for women business owners.
Why women owned businesses have a tough time getting a loan?
In spite of being great in number, female entrepreneurs are finding it difficult to secure business financing from banks, credit unions and other lending institutions. It is also true that business lenders feel reluctant to offer women’s small business loans. If cultural beliefs are to be blamed, then there are survey reports also, which say:
- Women business owners generally prefer low-growth industries, which is an indicator of wrong business model
- Poor negotiating skills compared to male counterparts
- Women are less often reported as millionaires
- Businesses owned by women tend to grow slowly.