Challenging the myths behind business loans for women
Business loans for women can be difficult to arrange. It’s hard to say whether this is because of a lack of financial confidence after a spell out of the marketplace, or because of a perception that finance providers are less interested in the structure of female-owned businesses that are often arranged more flexibly to fit around the needs of a young family.
Interestingly, when women do apply for business loans, and lending in general, they are statistically more likely to be accepted than men. One study, from the British Banking Association, found that 70% of female business finance applicants secured a loan compared to 56% of male applicants. So, it seems to be just a perception that women are less likely to be able to secure business loans which is a deterrent, rather than the reality itself.
If you are a woman looking for a business loan, or any finance to start up or grow your venture, you are probably facing some quite specific challenges compared to your male counterparts. You might own a business that operates in a very male-dominated arena, such as property, manufacturing or importing, in which case challenging stereotypes in your industry and conveying confidence can be an issue. And, of course, if you have had children, and you are juggling the demands of a young family with running your business, every aspect of entrepreneurialism becomes a bit more challenging.
Finding the support that can help your venture flourish
Some of the initiatives that have been introduced by the Government to encourage female entrepreneurship include grants, unsecured loans and mentoring schemes such as Enterprising Women and Everywoman. While these initiatives are great for nurturing a supportive network, providing experienced mentors and countering some of the isolation that female business owners, particularly mothers, often feel, they do not necessarily provide additional finance opportunities.
At Funding Guru we recognise that female-led businesses might face their own specific obstacles – if you are a start-up your career history might have involved a break to have children, for example, or your venture might be part of the ‘mumpreneur’ revolution in that it is structured to meet some of the day-to-day demands of family life. Whatever sector you are operating in from something male-orientated such as software development to something more conventionally female-driven such as online retail, if your venture has potential, we can help you find the finance to back it up.
We have access to a huge range of unsecured business loans, some of which do include specific female-orientated support or mentoring. Whenever we look for finance solutions, we are as interested in potential and projections as we are in past performance so when it comes to business loans for women. None of the usual barriers should be an automatic deterrent to applying for finance.
Some studies suggest that women are also reluctant to seek business loans or stock finance for example because of the emphasis from financiers on ‘rapid growth’ businesses, so they think their venture doesn’t have the scope for growth that it needs, to attract finance.
At Funding Guru, we excel at finding finance for businesses of all shapes and sizes, with all levels of ambition. If you are a woman looking for a business loan to take your venture to its next stage of growth, however modest or far-reaching that might be, we can probably help.
If you’re looking to find the finance that will help your business to reach its potential, whatever its size, sector or plans for the future, contact us today.
Before taking an unsecured, or secured business loan out, please make sure that you can afford the repayments as failure to keep up with repayments could affect your or your business’s creditworthiness, which may affect your ability to obtain credit in the future. Additionally, if you secure your loan against property, your property may be at risk if you fail to maintain payments.