Are you a female entrepreneur who would like to keep your business on the pathway to growth and success? Are you unsure of where to turn for financing that works for your current balance sheet? Plush Funding offers small business loans for women and can help you find small grants for women that will provide the infusion of capital you need.
The workforce in the United States is changing every day, and we’re moving into a new, modern world at breakneck speed. One example of this is the growing number of women not only in the workforce, not only in positions of high-level management, but also the growing number of women who own businesses across the country. According to the National Association of Women Business Owners, or NAWBO, the following data relate to women business ownership in the United States:
- More than 11.6 million American firms are owned by women.
- These firms employ nearly 9 million people.
- They generated $1.7 trillion in sales in 2017 alone.
- 4 million American firms are majority-owned by women of color.
- These firms employ 2.1 million people.
- They generate more than $360 billion in revenue annually.
- 20 percent of all firms in the United States with revenue of over $1 million are woman owned.
- 2 percent of all woman-owned firms have annual revenues of at least $1 million.
Women are here, and they’re making a huge impact on the business world already. According to SBA.com, the number of woman-owned firms in the United States in 2007 was 7.8 million, which means that over the course of one decade, the number of woman-owned firms across the country grew by a factor of more than 48 percent.
There’s no reason to think this trend won’t continue. Women are going to take their rightful place at the top of companies, which naturally means that more and more women are going to start companies and own small businesses. While this is great to see for a plethora of reasons, the challenges for a small business remain regardless of whether the owner is a man or a woman – many growing operations need some sort of financing to keep the ball rolling.
Generally speaking, there are two main choices when it comes to financing small businesses owned by women. These include:
Small Business Loans
Small business loans are available for those who qualify. There are several different types of small business loans for women and men, and some of the options include:
- Bank Loans – A business that’s been operating for a few years and that has a credit history can apply for a bank loan much like any other operation. These are basic and straightforward loans whereby the lender funds the loan and the business repays it over time. Generally speaking, the business owner will need to personally guarantee that loan.
- Equipment Financing – Equipment financing is a specific type of lending that occurs when a business uses equipment to further its business. It’s generally tied to pieces of machinery needed to run a business, such as an oven for a restaurant or vehicles for delivery companies. Liens are placed on the equipment until the loans are paid.
- Private Loans – Some small business owners have personal connections that provide them with an opportunity to borrow money outside of a bank or in a purely commercial sense. A common term for these types of lenders is “angel investors,” and that’s something that can be available with the right personal contacts.
- Venture Capital – Small business owners may also go the way of “VC” money. In this situation, small business owners or startups present venture capital firms with business plans and proposals, and in exchange for funds the venture capitalists obtain an ownership stake in the company.
Small Business Grants for Women
In addition to loans, there are small business grants for women available. The benefit of a grant over a loan is obvious: Grants are given, which means that they do not need to be paid back. While that’s clearly better than having to service a debt, there are drawbacks to grants as well that need to be kept in mind:
- You’re competing with other entities for grant money, as there is a finite pool available.
- The application process can take months.
- You’ll need to account for what you did with the grant money if you win the grant.
- Every grant has particularities that come with it that need to be met.
However, there are small business grants for women out there, and if you feel that you’re a good fit for one or more, it may be worth your time to apply depending on the amounts involved, the time it would take to find out if you’ve won and the requirements that would be in place should you be awarded the grant.
Plush Funding Can Simplify All of This
If all of this seems confusing, that’s because it is – your mission is running your small business, so you probably don’t have a lot of time to dig into the nuances of funding and financing. You should instead take what could be hours, days or more and reduce that to a minute or two. Fill out the form on this page, and Plush Funding will get to work for you with regards to finding a solution for your financing needs. We’ll work with you all the way through the process as we have with countless other woman-owned small businesses over the past decade-plus. We’ll handle the legwork so you can continue to grow your business.