SMALL BUSINESS LOANS
Entrepreneurship has been thought of to be a very minor part of our economy for several decades. Ranging from school/ college students, unemployed individuals or people who decide to switch their career, entrepreneurs play a vital role in our economy today. As per the definition in the dictionary, an entrepreneur can be defined as a person who sets up a business or businesses, taking on financial risks in the hope of profit. An entrepreneur or a businessperson can be characterized by two most important factors: constant innovation and risk-taking. According to studies, people venture out to be businesspersons for some of the reasons listed below: to create an identity of themselves by working independently, to cater to their desired standard of living, to obtain a sense of self satisfaction, to achieve their desired goals, etc.
small business loans – business loans for women
There have been many examples of entrepreneurial ventures that have failed due to lack of proper planning, scarcity of resources, incomplete research and insufficient funds. Which means, the plans of running a successful business would not succeed without proper funding? In order to determine the amount of capital investment that needs to be put in to start a business, there needs to be a proper estimation of how to invest so that the business runs smoothly for the first few months. A lot of this investment will go in a single time while setting up a business, for example: investment that goes into infrastructure can be considered an initial investment. A part of the investment will have to be put in at regular intervals, for example: rent/ EMIs, insurance, etc.
Initial phase of the new business: Small Business Administration suggests that one must acknowledge and categorize the above expenses as essential or optional.
Initially, at the very start of a business, the expenses should cover up only the things that are absolutely required to start a business.
At the very beginning, it becomes difficult to manage the inflow of funds for your business. This acts as a major reason for the failure of many new start- ups because they do not have sufficient funds to keep their new venture going. Flatworld knowledge claims that if you do not have sufficient funds for your business, it would directly affect the stakeholders (owner, investors, employees, and customers).
The way out: Fortunately, in today’s date, entrepreneurs do not have to worry much about the source of their investment since there is help available. The U.S. Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters”. The agency’s activities are summarized as the “3 Cs” of capital: contracts and counselling.
SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.
Business loans for women: Women these days are no behind than men in starting their own ventures. Hence, business ventures started by women see optimum growth in today’s date. As per study, the percentage of women entrepreneurs in the United States amounts to almost around 40%. Also, the growth of women- owned businesses is rapidly escalating at a rate double that of men. Therefore, the general expectation pertaining to small business loans for women would be the growth of the amount of loan provided to them, keeping in mind the above situation.
Although the ideal scenario should be the above, the situation is not actually as much favourable for women who go in for small business loans. Studies suggest that only 25% women entrepreneurs opt for business loans for business loans, and those who go in for it, opt for a lesser amount than their male counterparts.
Although there is dearth of small business loans for female- only applicants, many lenders and loan policies make sure they empower women entrepreneurs on this platform as well. Following are the business loans for women which seem to be really good options for their start: SBA loans, lines of credit, and microloans—they comprise of the most ideal repayment terms, irrespective of being business loans or other types of loans for women.
Other than only small business loans for women, there also exist women-only business grants, mentor-ship programs, and certain resources which have the capability to define the success or failure of their business. We need to keep in mind multiple factors and the type of needs of the particular business set up in order to select the type of small business loan appropriate for women- led entrepreneurial ventures.
Business financing is a crucial facet of business establishments irrespective of them being newly launched start ups or businesses in their advanced stages. For start-up entities prospective owners may lack adequate capital to effectively roll out the new business operations. For existing entities financing forms an important component in expanding activities without curtailing the effectiveness of existing operations. Hence, small business loans are the go-to option for those who think of venturing out for their own start- ups.
If you have an emergency and need fast cash then you can go for online payday loans but yes, you have to keep one thing in mind, payday loans are for short term and have high interest rates but if you pay well in time then this can be savior.