Ways to Better Support Women-Owned Businesses

The National Association of Women Business owners claims that more than 11.6 million businesses in the United States are women-owned, and they employ nearly 9 million people. However, most women-owned businesses need outside funding to stay open. 

Women-owned businesses have a hard time getting funding. Women tend to use lines of credit to finance their businesses, unlike men that use equity investors. Luckily, funding options for women and minority-owned businesses are growing day by day. They now have a better chance of obtaining funds by exploring online funding sources and following some basic qualification requirements.

Ways to Support Female Owned Businesses

In 2021 the country works on rebooting the economy from the coronavirus fallout, and female-founded businesses can make a comeback if they have support. Take a look at these four ways of supporting women-owned businesses and pick at least one to help your lovely female friends.

1. Look for #WomenOwned Products

Do you wish to buy products from women-owned businesses but are not sure where to find them? Fortunately for you, there are numerous resources available to assist you in your search.

Start looking on social media for women-owned local businesses. Apart from friends and other small businesses you frequent, that’s an excellent place to start. Make sure you look for hashtags like #womenownedbusiness or #womenowned to get in touch with female entrepreneurs and business owners on Instagram and Twitter.

2. Donate or Become an Investor

A great way to support their cause is to donate to organizations like Opportunity Fund, a non-profit that provides loans to women-owned small businesses and underrepresented entrepreneurs. If you wish to invest in a firm directly, buy stocks from a women-owned business that’s publicly traded or speak with your financial consultant about including women-owned businesses in your portfolio.

3. Offer Social Support

Spreading the word is one of the most effective marketing methods available, and it’s free. Show your appreciation by leaving great reviews on social media and being specific about what you liked best.

Follow accounts on social media that support women, such as WomensNet, which gives monthly grants to businesses owned by women. Also, don’t forget to follow the U.S. Women’s Chamber of Commerce, a group that helps women build successful careers and businesses.

4. Collaborate with a Woman-Led Business

Support women-owned companies in your neighborhood in becoming noticed and heard. For example, for your next corporate event, you could partner with a woman-led business. Take the initiative and invite more female keynote speakers and moderators if possible. These events can support a small business to gain exposure and help female entrepreneurs expand their network.

Financial Support for Women-Owned Businesses

According to the Small Business Administration (SBA), female business owners focus on industries with smaller revenues, own younger enterprises, and work less than twenty hours a week. The annual income of 88% of female-owned companies is less than $100k. Even though these variables may make it more difficult for them to obtain business loans, many options are still available.

  • SBA Credits: You will get a single payment and reimburse it in an equated monthly installment. In case of an SBA loan default, you will get 85% of the amount you loaned. 
  • Bank Credits: Credit unions and banks offer business loans for both long and short periods. To qualify, you must have a particular amount of income or assets. You will need to show a couple of documents if you want to get the loan, and the most frequent ones banks request are income reports and estimates plus financial records.
  • Online Financing for Small Businesses: These types of loans are similar to traditional bank loans. The criteria are not that strict for online financing, and you can get approval fast. With online business loans, you don’t have to wait countless months to have your loan approved. They may have bigger fees and rates, but you will get your loan faster.
  • Personal Credits: If you get a personal loan from online lenders or banks, you can use them however you want, including to build up your business. You don’t need to justify their usage. The loan will be approved if the verifications show you’re trustworthy.
  • P2P Lending & Loans: These lending websites connect you with private investors that give loans to individuals or small businesses. To qualify, you’ll need to show that you’re eligible for a loan. 
  • Financing for Equipment: Want brand new equipment? Then opt for an equipment loan, and you will get the essential things you need to run your business. You can purchase them from suppliers and equipment financing companies.
  • Microcredits: Microlenders, such as non-profit, local, and government institutions, make modest loans to underprivileged entrepreneurs. The SBA, for example, produces up to $50k microloans.
  • Business Credit Lines: This type of small business loan is similar to a credit card. As long as you don’t exceed the maximum amount of credit, you can borrow the entire amount that the bank offers you. You will only pay back what you borrow. This business line of credit is perfect when you need to purchase inventory or pay for an expense that you didn’t expect.

Get Your Business Rolling

If a business loan is your number one option, start gathering information about it from the local community and voluntary groups, LDAs, like councils for voluntary service. If you have good personal credit, you will obtain online financing for your small business. Before submitting loan applications, check your business and personal credit report and also your credit score. If you get a federal Employer Identification Number (EIN) by registering a corporation or LLC and opening bank accounts in your company’s name, your business credit will build up.

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