Business loans for women

In contrast to an unsecured business loan, acquiring a secured business loan will require you to offer up some valuable business assets like machinery, vehicles, or commercial property. For lady business owners, that don’t want to put forward a personal guarantee there are several lenders on the market.

Secured business loans work in the same way as other types of loans for women, but in this case, the lender will offer you a loan in proportion to the value of the assets you put forward. For example, if you are running a business with plant and machinery, you could offer this as security, and in exchange, a lender would offer you a considerable sum of money for your growing business. A much smaller amount would be offered in return for a commercial vehicle or cash-in-hand.

You’ll be glad to hear that in return for putting forward your assets as collateral you can avail of fixed interest rates — so you won’t have unexpected price hikes over the repayment period. On offer are usually short, medium, or long-term secured business loans, and the amount you’ll be eligible for will reflect the value of balance sheet assets put forward. Commonly, 100% of the market value of the asset will be matched by the lender.

Female entrepreneurs seeking a new source of business finance might not be aware of an alternative funding option called a merchant cash advance. This type of business funding is well suited to small businesses registered in England that accept debit and credit card payments from customers. The lender issues cash advances, which are then later repaid by the borrower as a fixed percentage of customers’ card payments. This is an ideal way to get cash quickly in a bid to manage challenging cash flow situations. Depending on the lender and application process, you can get approved for a merchant cash advance within 24 hours.

The speed of access to cash has resulted in this type of financing option becoming increasingly popular as a type of small business loan. Many businesses use business credit cards to access instant cash, but in comparison to merchant cash advances, the rates are much lower, especially if you don’t pay off the balance in full at the end of the month, which is always a risk. This type of funding gives you more control over your finances, as repayments are matched to customer card payments.

The final type of funding for female entrepreneurs that we will cover in this article is similar to an overdraft and is known as a revolving credit facility. This could come in handy if you need to buy more stock unexpectedly or cover a supplier bill at a time when cash flow is low. It’s similar to a working capital loan and will work for a broad range of SMEs. You can withdraw cash, repay it, and then withdraw more cash without the hassle of applying for an entirely new loan facility each time. The money is there for you when you need it most. The amount of money that you can obtain is dependent on your credit rating and financials. Usually, one month's revenue is a typical loan amount on offer.