Business Loan for Smart Women Entrepreneurs – How to Avail, Eligibility and Benefits
‘Women Entrepreneurship’ has become the buzzword of the 21st century. Women are breaking all human-made gender barriers to excel in fields that were considered unsuitable for them. From the Olympics to Finance, from Army and Airforce to business, women are participating in all kinds of jobs known to humankind. They have proved their mettle in almost every field including entrepreneurship. However, women entrepreneurs need business loans too to grow their businesses. There are various loan options available for women entrepreneurs.
Benefits of Business Loan for Women
In order to promote entrepreneurship among women, various benefits are provided on small business loans for women. Given below are the benefits of availing of a small business loan for females.
No Requirement for Collateral:
Business loans for women do not require you to provide any collateral or security for the growth of your business. If you are just starting out as an entrepreneur and don’t have an asset to provide as collateral, this type of loan can come to your rescue.
Facility for Overdraft:
Small Business loans for female comes with an overdraft facility that is unsecured and does not require you to submit any collateral or security. The limit for withdrawal is set in different current accounts which drop every month until the business tenure ends.
Interest Payment:
One of the unique features of SBA loans for women is that they don’t require you to pay interest on the loan amount that has not been utilized. The borrowers are not required to make monthly payments of interest. You have to pay interest only on the amount used by you.
Flexible payment tenure:
Business loans for women provide the facility of flexible repayments. You don’t have to make monthly payments and can choose between 12 – 48 months to make loan repayment in part or in full.
Lesser documentation:
To make the entire borrowing process hassle-free, simple and smooth, small business loans for women require a lot less documentation. The application for business loans for women can be completed within a matter of minutes as it requires you to submit only your personal, income, and business information required.
Quick loan approval and funding:
The approval for a business loan is received within a week or even less. This supports business growth by helping women entrepreneurs. The funds received can be used for different purposes like purchasing an asset or funding the day-to-day business operations.
Types of business loans for women
There are different types of business loans for women that can be availed of. Some of the most popular ones are mentioned below –
Small Business Finance:
If you are a women entrepreneur, you can avail small or SME business loans. Some of the banks or financial institutions offer small business loans for startups too. You can have an opportunity to get a short term loan for a small amount and a shorter period. You can also avail a Line of Credit to fund your day-to-day business requirements. The amount of LOC given is determined on the basis of the eligibility of the applicant.
Commercial Business loan:
If you require a higher loan amount, you should opt for commercial business loans. These loans are the best suited for medium-scale businesses that are willing to expand their operations. These loans are generally unsecured in nature and the loan application and approval are quick and instant. Thus, you can avail yourself of a higher amount if you pledge any of your assets as collateral. To avail of this loan, you must have a profit-making business.
Loan against Securities:
Another popular type of credit is Loans against securities. You can pledge your investments in stocks or securities as collateral and avail of a loan against it. You can use the amount borrowed as per your own requirements. This type of loan carries a lesser rate of interest and an option of flexible repayment.
Personal Loan:
A personal loan is a type of loan that is unsecured in nature and does not require any collateral against the amount of loan. You can also add a co-applicant in case you want to increase your loan eligibility. One of the most unique features of this loan is that it can be used for bother personal as well as professional requirements.
Eligibility Requirements
If you are a women entrepreneur looking to avail of a small business loan for females, it is important for you to first understand the eligibility requirements that you need to fulfill. To make your loan application and approval process smooth and easy, you need to ensure that you have the following –
Age of Business: Your business must have been established at least 2 years prior to applying for the loan. Accordingly, it helps support your candidature and establish trust in your ability to pay back.
Personal Credit Score: It is better to have a personal credit score of 600 or more. Accordingly, this will help ensure that the loan application and approval process is hassle-free and smooth. You should ensure that you repay your loan amount on time to increase your credit score. Definitely, a higher credit score established your credibility as a sincere borrower who repays their loan on time.
Annual Revenue: The annual revenue of the business must be more than $120K in the last 12 months. Running a profit-making business establishes credibility and trust in the mind of the lender. It is used by the lender to measure your ability to repay the loan amount.
How to Avail a Business loan for women?
Availing business loans for women is very simple and effortless as it requires very minimum documentation. You can avail of the loan within 3 simple steps.
Step 1. Enter your Information
The first step is to enter your personal, financial, and business information to avail of a business loan for women. Furthermore, these are the basic information required by the lending bank or financial institution to process your loan application.
Step 2. Document Verification
Once you have entered the information, you need to get the information entered you verified. Furthermore, you need to scan the original documents and upload them online to get your information verified for trueness.
Step 3. Wait for loan approval
Now, The next step is to wait for your loan application to get approved. Usually, the waiting time is 7 days or more but with Global Connect Pro Financial, you can get your loan approved in as little as 3 days.
Moreover, every business needs funds to be able to grow and operate. Thus, women entrepreneurs facing a fund crunch can avail of the above-mentioned loan options to grow their business without hindering the day-to-day business operations. There are various options to choose from and require very little documentation.
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