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These are the best small business loans for women of 2021

Data by the National Association of Women Business Owners show women own about 40% of the total number of businesses or about 12.3 million businesses. These generate close to $1.8 trillion in revenue annually.

According to the National Women’s Business Council, Hispanic women-owned firms employed 550,400 workers and collected $97 billion in revenue in 2016 alone.

However, the Bureau of Labor Statistics notes that 50% of businesses fail within the first five years. A US Bank study indicated that 82% of the failed businesses blamed cash flow issues. You can avoid cash flow problems by acquiring business loans for women.

This article examines the most dependable loans for women in 2021.

Business success stories of women entrepreneurs in 2021

a) Sofia Elizondo

This savvy businesswoman sensed an opportunity during the Covid-19 pandemic and created Brightseed, an AI tool for mapping plant compounds. The bioactive might impact human health. She relied on investors to raise $27 million, and the growing commercial interest in her innovation helped hit revenue goals for the last two years.

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b) Flori Marquez

Flori Marquez recently partnered with Visa to launch BlockFi, the world’s first bitcoin rewards credit card. She is a female leader in finance with global influence. Her success in bridging traditional finance and blockchain relied on more than $500 million from investors.

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c) Parisa Fowles-Pazdro

Maxbone sells pet accessories and has collaborated with well-known brands like Disney to attract customers. In 2021, Parisa’s company increased sales by 300%. Her items are neither low-budget nor designer, making them affordable for many people.

d) Gina Bartasi

Gina Bartasi is a serial entrepreneur whose current company, Kindbody, offers accessible fertility solutions. This business boomed during the pandemic, and she intends to expand to 12 new markets in 2022. All her physician employees are women, and she has raised $125 million in venture capital.

e) Jessica Santtos

The former Miss Latina 2014 empowers women to invest in the financial market. She focuses on Cryptocurrencies, which have given her returns over $1M. She believes in letting your money work for you and diversifying investments.

Financing options for women entrepreneurs

1. Asset-based financing

Under this arrangement, the lending company will secure the loan using one of your business’s assets. Some of the assets they could utilize can be machinery or equipment. If you fail to make loan installments, they will take the help in exchange.

2. SBA options for women business owners

The US Small Business Administration has loan programs specifically for women. It has partnered with firms to offer counseling and advice for women business owners. Going through the programs should set you up nicely for an SBA loan.

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3. Traditional bank loans for women business owners

Traditional banks offer some of the best business loans for women. These loans require business owners to provide business plans, financial statements, and cash flow projections.

4. Venture Capitalists

Venture capitalists provide business grants, business loans, or lines of credit to businesses they believe will be profitable. A business owner offers shares of their company in the place of loan repayments.

5. Merchant cash advance

The lender will extend you a lump sum of money in exchange for a portion of future revenue from sales. Unlike conventional loans that you repay monthly, you will repay the loan every time you receive a sale payment.

Requirements for women to acquire loans for their businesses

i) Credit score

The lender will likely scrutinize your business and personal credit scores and history to determine whether you can afford the loan payments.

ii) Previous business experience

Most conventional lenders will disqualify start-ups. That’s because they have no track record to prove their creditworthiness. However, not all financiers will disqualify start-ups as business loan policies vary from lender to lender.

iii) Business operating history

You must prove that you have a viable business by furnishing business financial statements for the past three years.

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iv) Tax returns

No lender will give you a substantial loan unless you provide tax returns for the past three years. If you are an immigrant and don’t qualify for the SSN, apply for the ITIN number and start paying your taxes. 

Final Words

The best loans for women in 2021 are SBA loans, bank loans, and asset-based financing. Follow the link in the introduction section for more information on business loans for women.

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