Incentives For Women Obtaining Business Loans

Making working capital, business loan financing, and other funding available to women is even more important in today’s growing small business industries. More women are becoming business owners, and the result is a growing need for small business loans from banks and other financial institutions. Due to the number of growing enterprises, the offer of incentives by lenders is becoming more prevalent.

Competition for the best rates, along with easy application processes make it attractive for women in business to obtain the loans they need in their business venture. Women business loans may consist of commercial lending programs from banks and institutions, community development organization financing or private funding.

Women entrepreneurs and business owners can gain access to business capital and work with local community partners of their lending institution as soon as their application is complete. Obtaining a loan from a commercial bank offers options to extend services to personal bank accounts: checking, savings, and credit card accounts can all be managed in one place and provide extra benefits for both parties.

Some community development organizations offer business coaches or mentors as an incentive to obtain funding through them. This can be a very valuable resource for women to work with, network, and socialize with area committees and members. Being listed in a business funding directory, community newsletters, websites, and other promotional campaigns becomes much easier. Gaining marketing and advertising exposure naturally through these networks can be an added incentive for women who choose to work with different lenders and programs. Finding the right match through a variety of funding sources is part of the task of obtaining the small business loan. Some corporations and private investors may offer additional perks and incentives as part of the offer extended to women looking for a business loan.

For women who are creating a small business from home, a lender may offer options to refinance the house in addition to increasing the line of equity. This can help considerably on a personal level, as the startup capital can be increased from a boost in savings from the house proceeds. Other valuable incentives may include additional credit card packages, extended lines of credit (credit worthiness is increased significantly over time, and if women continue to make payments on time, this can help them boost their credit scores for maximum potential.), and reduced rates on premium products throughout the year.

Other business loan incentives can include ongoing referrals and bonuses, exclusive access to discounted rates, a rate decrease, easy transfer of a loan, merchant accounts, invoice factoring, key contacts to purchase supplies and inventory, and a stronger chance of obtaining future financing from the same lending institution. Each financial institution or lender will outline or make an offer of the incentives program offered with each program. Women especially have a strong chance of making use of these incentives since they can improve their status as a business owner considerably in a short period of time.

The Businessman (Women Please Change To Business Woman)

The businessman performs a vital role in the community. This sounds like an obvious statement but they are often taken for granted by the people that work for them and the entire support structure, but without them there would be no need for any of the above.

Take for example a person who sets up a restaurant in a local community. Initially, it is necessary to gather capital together – people want to dine in a nice atmosphere thus it is necessary to spend heavily on this. What does this involve?

It may be necessary to convert a previously unused building so immediately the full range of trades is required through joinery, plastering, perhaps plumbing, tile fitters, painters, decorators' etc. Additionally, a huge range of materials will need to be purchased from tiling, carpets, wallpaper, kitchen materials and cooking facilities etc.

So immediately the benefits to the local community are evident and suppliers of these trades and services benefit.

Going further back, when the idea was being formed, the chances are that an architect would be used to help form the final design and possibly a quantity surveyor to analyze the anticipated costs of the project, perhaps interior designers to help with the proposed theme. Additionally, an accountant’s services will probably be employed to prepare a business plan and cash flow projections.

Continuing down the line, once the restaurant is open it will require staff, again a benefit to the local community, and will require constant maintenance, taking us right back to square one.

Now, as we all know, each business has different requirements, but this gives a general idea of the necessity of entrepreneurs in the local community.

The businessman is proactive, takes financial and reputation risks, and, like other trades or professions, provides a valuable and necessary service.

In many communities, businessmen who do well are often scorned and questions abound throughout the community as to the morality of the individuals required, without taking stock of the above however this is perhaps a natural human emotional response.

It may be levied at the businessman that his goal is to maximize profit, but then of course he is or he wouldn’t have ploughed capital and taken the risks in the first place; indeed, is that not the goal of any profession or trade also? It would be absurd to imagine someone getting out of bed in the morning if the goal were not to maximize profit?

Of course there are unscrupulous businessmen and unfair employers, but are there are there not also unscrupulous tradesmen, professionals, or indeed politicians and heads of multi national corporations?

The average community, if there is such a thing, would greatly struggle without the businessmen; indeed, the argument could be put forth that the community as we all know it, would perhaps cease to exist – someone can only get employment if someone else takes the risk to set up a firm.

Every trade or profession is dependent on the businessman to a degree, they may even be businessmen themselves by definition and the community ticks round as we know it due to the businessmen taking risks, employing local advice and inputting capital to whatever venture is involved.

Barriers to Advancement Facing Women in Business

Copyright 2006 Red Ladder, Inc.

Women continue to enter the workforce in record numbers. In fact, almost 47% of the workforce is comprised of women. Yet, despite this fact, very few women hold the top slots.

Take one stroll past the executive suite in your organization and there will probably be a noticeable lack of women to be found, particularly if you exclude the support staff. Perhaps you never took the time to consider this or to even ask the question, but given the number of women in the workforce, does it seem rather odd that there aren't more women ensconced in the executive suites in business? I think so.

I've talked with many women leaders to try to identify the barriers that preclude more women from reaching the corner office. Here's what I've learned.

First, life-balance and family tradeoffs continue to plague women who want to build successful careers. As has long been the case, the bulk of family and household responsibilities still fall on women's shoulders. How each woman, her family, and her place of employment choose to manage and negotiate around this issue will clearly have an impact on a woman's ability to take advantage of those business opportunities that lead to long-term personal and professional success.

Another surprising deterrent is the perception that women lack key business credentials. As a woman with an MBA and MA under her belt, this one makes me chafe a little. However, having the right business credentials means more than having the right degree. Rather, it means being able to demonstrate in measurable ways a clear understanding of those business practices and the financial aspects that are important for an organizations success. This is what is commonly referred to as business acumen. Women don't lack key business credentials, they just need to do a better job of getting the credit and recognition for using them.

Finally, women continue to lack representation at senior levels simply because they just don't have visible positions. Many women typically follow career paths that lead them into the more traditional female roles such as marketing or operations. The lack of coveted profit and loss responsibility will often preclude them from consideration when the top jobs do become available.

Corporations need to make the case for developing women leaders within their organizations. They must stop overlooking the fact that women have good instincts about business and that they are good managers, delegators, collaborators, and team players. Since most businesses are built on relationships, these are crucial assets to an organizations long-term success.

While there are other reasons why organizations should focus on developing more women leaders, the primary reason, simply put, is that it just makes good business sense. Those organizations that want to reap the kind of financial returns so critical to their long-term success, should begin seeking out and supporting executive women leaders. Over the long haul, that's something that we can all bank on. Don't you agree?

3 Resourceful Ways For Women To Obtain A Business Loan

Millions of businesses are owned and operated by women in the U.S. today, and many successful enterprises have been funded through business loans. Business loans for women are readily available from various agencies and groups. Community organizations, lending institutions, banks, and grants can help women get a loan for their business easily and efficiently. The process is the same as other loans, but finding the right loan for a woman specifically can help bring many benefits.

Women may need a business loan for a variety of reasons. This can include expanding a current business, creating a new venture with working capital, setting up a franchise, or creating a research and development team to incubate a business for a period of time. Whatever the reason may be, all businesses run by women can qualify for a sizable business loan through a variety of groups and resources.

Business loans for women are specially tailored so that women can support themselves, any children, or other lifestyle factors along with their business plan. It’s important to determine what all the costs of operating a business may be, including expected salary for the owner.

If the overhead costs for an on-site business is too high, business loans for women are ideal to help set up a home based business. Many banks and institutions can help fund the working capital required for inventory, assets, capital equipment, or future loans.

Business Loan Applications require an in-depth assessment, possibly an interview, and a review of the business plan. A lender will also take into account character, credit, experience in the field, and reliability. Creditworthiness is important, and a credit and background check will be run to find consistency and integrity. A pre-qualification is a great idea to get an estimate on how much can be borrowed at one time.

Besides the many banks and institutions that fund business loans for women there are 3 resourceful ways for women to obtain business loans: The Minority Business Development Agency, Business Incubation, and Business Competitions.

The Minority Business Development Agency works closely with women to provide financial support for women of various ethnics and cultural backgrounds. They work with Wells Fargo, and can create a customized loan program tailored for the woman’s business needs. Centers with community projects abound across major states. These Centers can help women review and write business plans, submit them to competitions, and help apply for business incubation.

Business Incubation is a business support that provides resources and services to start-up fledgling companies. Business Incubation is a great idea for startup businesses, as the professional services can help get the business off the ground. Incubators can help with the loan process, as they are interested in seeing the business off to a great start. They will make an offer on rent cost, supplies, materials, and office space and adjust the loan amount as the business grows. This is an excellent opportunity for beginning an enterprise.

Business Competitions can help get a new idea or innovative concept off the ground. These are usually privately funded, and can open up doors to obtaining a full-fledged business loan. Alternatively, a winning plan can be granted a cash lump sum to start, and then qualify for other contests or incentives. Business plan competitions are often sponsored by corporations or private investors. They generally do not require a loan repayment, but can bring some great connections and referrals for future growth.

It’s easy to get started on a business loan for women in business; from home based businesses, startup companies in incubation, or just bringing a skeleton business plan to the bank. Many lenders will tailor and create a customized loan amount for the woman entrepreneur.