Business Loan Options for Women with Bad Credit
Back in the 1960s, it was never easy for women to engage in entrepreneurship activities owed to the many taboos which were associated with women in the business realm. However, more than 50 years now, women are able to compete favorably with their male counterparts when it comes to conducting businesses not only locally but also from the global point of view. However, accessing the capital to fund the operations of business still remains a challenge for many women.
Actually, the majority of the big banks are reluctant in offering loans to women considering many of them tend to have bad credit scores. So it is important for women to consider the available options instead of waiting for their credit history to build up. This way, they will be able to grab business opportunities while they are still viable and expand their corporation while the market conditions are favorable. In this article, we are going to discuss the small business loans options which are available for women having a bad credit history.
The current wave of women empowerment has led to the rise of many organizations and groups which are supporting women in not only building their career but also becoming self-employed. Some of these organization and groups are achieving this agenda by funding women to carry out certain entrepreneurial activities. Majority of the loans provided by these organizations are of very low interest and they sometimes require zero collateral and therefore anybody without money can access this nature of loan perfectly easy. Therefore, as a woman entrepreneur, you can take advantage of these organizations/groups and secure a loan to fund your startup or the expansion of your business
Find an understanding lender
The traditional lending environment will not be your friend as a woman especially if your credit history is poor. You will have to search different types of lenders who readily provide loans for small businesses which tend to have poor credit scores. Getting such kind of lenders will increase your odds of getting your loan approved and therefore enhance the muscles of your startup. You can find out these type of lenders from the internet or maybe liaising with your friends who probably might be familiar with the lending fraternity. Basically, when you do your homework well and research widely, you will likely land a decent lender who is likely to sort out all your issues.
These types of lenders came into being after the 2008 recession when the banks had technically ceased from lending to weak businesses. Their rise was to bridge the gap which had arisen from a reduced amount of lenders compared to the increased demand for loans. These lenders, well known as the fintech lenders make use of various algorithms to determine the amount of loan which can be extended to a person. Currently, the majority of these firms are using big data technology to mine and profile data of potential customers which are later used to determine the creditworthiness of anybody who wishes to borrow from them. Therefore, as a woman, you can consider taking a loan from these kinds of lenders because the banks will not be of help to you.
Friends and families
In case you have a family member or a friend who is financially stable, you can request a loan from him/her. Explain the repayment mode perfectly well and maybe the benefit which you will offer after settling the debt. Make sure you honor the agreement with the friend or the family member so as to prevent future confrontation something which can put your business at a stake. Although this kind of loan might not satisfy all your business needs, it can significantly boost your daily operations.
Generally, there are many funding opportunities out there for women who would like to engage in entrepreneurship activities and have got poor credit scores. All that which needs to be done is making smart homework and researching extensively on the available options