Discover Untapped Business Loan Sources for Women

If you're a woman in business for herself, you face a world of obstacles that male-owned businesses don't encounter. Women traditionally make less money than men in a number of fields, and many industries are still unfriendly to women. Women-owned businesses are often relegated to the status of small, secondary businesses, or confined to traditionally 'feminine' professions such as child care. If you're a woman trying to establish a new business for herself or finance an existing business, there's good news. The Small Business Administration and many private lenders offer women's business loans to cater specifically to women trying to navigate the business world.

Create a business plan.
Just like men, women applying for business loans must create a comprehensive business plan. The business plan is a complete guide to your business, the services it offers, the reason your business will be successful, earnings projections and an accounting of how you intend to use the business loan. The more detailed and comprehensive your business plan, the more comfortable the lender will be with loaning you money. A well-researched business plan tells the lender that you're ready to start a successful business, and you're a good risk for a business loan for women.

Assemble financial statements.
In addition to a comprehensive business plan, many financial institutions require you to present business and personal financial statements when they consider you for a women's business loan. If you're applying for a start up business loan for women, you'll have to present a personal financial statement. Lenders look to see whether you handle your personal finances well, with the logic that if you can't control your own finances, you'll be a poor risk for the more complex finances of a small business situation. If you have an established business and are looking for a women's business loan, you'll have to submit a business financial statement, and may still have to submit a personal financial statement in addition. The business financial statement should detail profit and loss information, including costs, inventory, capital expenses, assets and other relevant information about the financial operations of your business.

Start local.
If you've already got a personal or business account with local lending institutions, start there to determine whether they offer business loans for women. A local institution that's already doing business with you is more likely to consider your request for women's business financing, especially if your accounts are in good standing and you have a good income and financial history. If a local institution denies your request for a women's small business loan, ask them why and learn from the answer. Incorporate their feedback into your business plan and financial statement. If you find that you're striking out frequently, you may need to re-evaluate your business plan or improve your credit on your personal financial statement to be a good risk for a women's business loan.

Tap small business resources.
Literally hundreds of small business resources exist to help small business owners establish a successful business. If you're not sure where to apply for women's business financing, start with the Small Business Administration. SBA loans are government guaranteed, so SBA-backed women's business loans often come at a lower interest rate than business financing loans through independent lenders. The SBA has local chapters all over the country, and they usually offer classes on creating effective business plans and business financial management in addition to assistance in getting a women's business loan.

Beyond the basic services offered by the SBA, women seeking business financing benefit from the Office of Women's Business Ownership, a branch of the SBA designed to cater specifically to women-owned business loans, as well as other women's business needs. If you find that you're striking out elsewhere or would rather just start with a women-specific agency to help you with your business needs, contact the OWBO for help with women's business financing or any other women's business needs.

Establish a good financial history.
If you're looking for a start-up business loan for women, you'll need to provide a financial statement to prospective lenders. If your credit is flawed, you may have difficulty obtaining business financing. To ensure your success applying or women's business financing, you should take a look at your credit report and resolve any outstanding negative items. Once your business is established, you'll need to maintain a good financial history, both personally and in your business, in order to remain credit-worthy and get small business financing when you need it. Monitor your credit closely, and make adjustments when necessary to keep your personal and your business credit-worthiness in tip-top condition.

If you need tips to improve your personal finance statement by clearing up outstanding items on your credit report, check out the Credit Secrets Bible. For free credit tips to help you manage your business and personal finances, sign up for our free credit secrets newsletter.