Empower Your Business: Small Business Loans for Women

Supporting female individuals in business by funding them with loans for small business women is not just a requirement for uplifting our society.

It’s also the need of the moment for the developing countries. Developed nations like the UK also need to do it to keep their boosted economic status in check.

Why? Because, like men entrepreneurs, women entrepreneurs also contribute to society very much. They drive innovations! Again, they create jobs!

However, it is never easy for all UK women entrepreneurs to start their small businesses from scratch and make them stand tall.

Wanna know about the basic requirement that usually hinders most women from starting their businesses? It’s none other than the availability of funds.

But, thanks to the government and other loan-proposing support systems, they can touch the path of success.

Wondering, who are such financial support systems and how to get small business loans for women from them. Keep reading because we have covered everything in this write-up. 

Small Business Loans for Women – Their Benefits

• These loans empower women to have enthusiasm toward business financially. They can use these funds to start their business and expand it gradually. The funds help them to pursue growth opportunities. 
• With these funds, they can get mentorship and training regarding business development. Also, with the help of the networking opportunities that the funds give to them, they can update their business skills. Moreover, the opportunities for the buildup of valuable connections that the funds give you take your business toward the path of success.  
• These loans for small business women offer flexible repayment terms. Also, these loans come with competitive interest rates. So, they are perfect for fulfilling all the requirements of a female-owned business.  
• They help various businesswomen overcome the barriers of the shortage of resources. With these funds, every businesswoman gets the financial support that they need. They can purchase their business products or their raw materials. So, they become successful in attaining their entrepreneurial goals very easily. 

Small Business Loans for Women, UK- Their Types

1. Government Grants or Loans

The UK government has made various grants or loans for small business women. These funds specifically facilitate the women sectors with strong entrepreneurial goals and planning.

It doesn’t matter how small their businesses are. The programs designed to make the funds accessible to women entrepreneurs are –

• EFG scheme, which stands for Enterprise Finance Guarantee Scheme.
• StartUp Business Loan Programs. 

2. Women-Centric Lenders

Business loans for female entrepreneurs are also lent by various other financial institutions. They are mostly online institutions​​​​​​. They may be called women-centric lenders.

This is because these lenders know how tough it is to establish a business by a woman. They understand that it involves unique challenges for that woman and she has to overcome them to succeed.

So, from these institutions, you can expect tailored financial solutions. These solutions are a saver for all business-minded women.

The terms and conditions offered by these institutions are quite flexible. They give loans to various businesswomen at competitive rates. 

3. Peer-To-Peer Business Loan

These lendings that provide small business loans for women are far more modern than traditional banking processes. Some platforms offer these types of lending.

There, women borrowers who own businesses can directly start conversations with individual investors. They can show the investors their business plans.

What if the investors get persuaded by their project plans? Well! they confirm the lending of the loan amount.

However, before confirming, the investors weigh the creditworthiness of the plans and projects. 

4. Community Development Financial Institution-Induced Loans 

These institutions are called CDFIs in short. You can call them a sort of non-profit organization. They usually serve underprivileged communities by helping them financially.

Such communities also include women who earn their livelihood through small businesses.

However, you can’t expect to get big amounts of loans from them as a businesswoman. This is because they are only familiar with providing –

• Small business loans.
• Mentorship programs.
• Networking opportunities.
• All types of support to female businesswomen, etc. 

5. Crowdfunding Campaigned loans

Many businesswomen have till now managed to gain the empathy of various people when their businesses were small.

So, they arranged money for their businesses through crowdfunding. Yes, this financial option for getting small business loans for women is recently trending now.

So, are you a woman entrepreneur seeking money for your business? Then you possess the right to launch crowdfunding campaigns. The platforms that allow the launch of such campaigns include –

• Kickstarter.
• Indiegogo, etc. 

These campaigns become triumphant when you succeed in gaining funds from several individual supporters. Also, expect goodwill from some. 

Business Loans for Women, UK – Where to Find?

1. Government Agencies

The government of the UK runs a business support website. This website comprises all information on loans for small business women. Also, it comprises information on other forms of loans and funding.

Go through every detail of the available grants and loans for women given on the website.

Also, gain information about the support programs norms that the government has designed for women entrepreneurs.

Plan on getting your loans or funds accordingly. 

2. Online Lending Platforms

Some online platforms lend money to various women entrepreneurs to tailor their financial needs. Such platforms include-

• Funding Circle.
• IWOCA, etc. 

The loans offered by these platforms are subject to quick approval. The repayment terms for women are also much more flexible. 

3. Women’s Business Associations

Furthermore, various small business loans exist in the UK. Different Women’s Business Association facilitates these loans to their borrowers. Such associations include –

• FSB (Or, Federation Of Small Businesses).
• WES (Or, Women’s Enterprise Scotland), etc. 

These institutions not only provide money for resources but also-

• Networking opportunities.
• Funding support, etc. 

4. Local Community Programs

There are many locally established societies or groups that do funding to women entrepreneurs. They include-

• Local councils.
• Community organizations, etc. 

These organizations help collect the money that you need from the local community. So, with the money, you can invest in your business or expand it cleverly. 

Loans for Small Business Women – Eligibility Criteria

1. You, as a woman applicant, have to prove that you are the business’s majority owner. 
2. The loan-seeker and her business plan must be solid and creditworthy. The business credit history of the applicant is checked for it. Besides, her personal credit history is checked as well. 
3. The proof of revenue must be shown by the businesswoman. Also, she must present the report on business profitability to the investor. She should be financially stable enough to pay the loan’s money back along with the interest.
4. Your business must comprise a solid plan. It must outline the company’s goals. Also, it should outline the market estimation, financial security, etc.
5. ​The legal compliance must be followed. The borrower should ensure that her business complies with-

• ​​​​​​Licensing & permits.
• Funding eligibility.
• Other relevant laws and regulations, etc.

Small Business Loans for Women – How to Apply?

• Do research on different types of loans that women entrepreneurs in the UK can borrow. Know about different programs and funding options. Also, educate yourself about the lenders who are ready to help women entrepreneurs to make their dreams real. 
• Accumulate all the important documents needed for a loan. The documents must support your loan application. The documents needed for the presentation include-

1. Documents of business plans.
2. Financial statements.
3. Legal documents, etc. 

• Arrange the loan-related application form and complete it. Fill it up without any errors. Don’t skip giving all the important information there. Also, attach the necessary documentation with the same. 
• Submit the form physically in person if you want to. Or, you can choose to mail the same for its submission afterwards. 
• The confirmation of the small business loans for women requires the lender’s positive decision regarding the same. So, wait for his/her approval. The approval may come within a few days. Or, it may even take several weeks. It all depends on the will of the loan provider and how long and complicated the application form is. 
• After you get the approval of your loan, review all the terms and conditions connected to the loan. Also, check the –

1. Interest rates.
2. Repayment schedules.
3. Associated charges, etc. 

• Sign the agreement. 
• Be prepared to receive your funds in your business bank account. Withdraw them and start your own dream business. Fulfill all the needs of the resources and all from such funds. 

FAQS

1. Can I get a business loan to buy a business UK?

Yeah, you can obtain a business loan in the UK in various forms from myriad platforms. Some platforms like High Street Banks or other loan providers give loans to their customers at a low rate.

However, they are not safeguarded. On the opposite, you can get a safeguarded loan by agreeing to furnish the collateral in the future. However, the interest rates in such cases are kept lower. 

2. How much can I borrow to buy a business in the UK? 

The investment values needed for each business are different. Hence, each female businesswoman may need a unique loan amount to start their business.

However, on average, for a normal business, one may be required to invest 1000 – 500,000 pounds. This amount is needed to establish at least a small business in the UK. 
This business might target – 

• Startup expansion.
• Working capital.
• Asset purchase. 
• Debt repayment.
• Business purchase, etc. 

The repayment time of this business loan must be within 25 years from the date of borrowing money. You will need to secure this loan. You can do it by mortgaging your property/land for some time. 

Conclusion

So, are you willing to start your new female entrepreneurial business and need some small business loans for women? Then think no more.

Apply for a loan in any of the above institutions and you will get it in your bank account within no time. Problem solved! Isn’t it?