If you’re a startup solopreneur, entrepreneur, mompreneur or whatever, a huge part of trying to realize your dreams is to set your bar immensely high and start looking at what women who own companies with widespread appeal did – Doris Fischer of Gap, Diane Hendricks of ABC Supply, Elizabeth Holmes of Theranos and Oprah Winfrey of everything. The reason we look to massive companies like this is they’re massively successful, especially financially. Now compare that to smaller operations where cash-flow is a regular point on internal meetings.
Basically, raising funds is tricky and sourcing finance is hard, which is why 50% of all small business run into challenging times. But, the worst part is, trying to get a small business loan when you are a small, niche startup and that’s because banks have the most stringent process whereby you must jump through every hoop.
That’s where getting a small business loan online comes in. To put it bluntly, your small and niche stature might suddenly be your biggest asset, as you’re about to find out.
1. Microloans for Women
What separates microloans from the rest of the pack is their size. They’re small and they target very specific types of people, including female entrepreneurs that want to get a business off the ground. What’s more, they’re more of them than you may think. Elizabeth Street Capital, Grameen America, Michigan Women’s Foundation and so many more. Like we said, the loan amounts are small, but they’re enough to get the ball rolling.
2. Minority-Owned Loans
Another option for some entrepreneurs looking to get started is the minority-owned business loans, which does exactly what it says on the tin: they’re small business loans for minorities. They’re loan programs where financing made readily available to entrepreneurs and solopreneurs from a minority. Of course, your business will need to meet other eligibility requirements, such as the strength of your operation and how long you have been operating, but it is still a great option to explore further.
1. Sky High Approval Rating
In case you weren’t aware already, traditional banks are being tight with their money. In fact, less than 1 in 4 applications actually gets signed off. Non-bank lenders, however, are much more willing to fund a small business.
2. No Collateral Needed
With a traditional loan, not putting up collateral (such as a house or car) is almost unheard of. It’s a way of managing their risk. But with non-bank lenders, these stipulations rarely exist. This is good because should you be forced to close the shop shutters one last time, you won’t have to look for a new place to live as a result.
3. Your Money, Your Call
The reality is, a bank loan is not a blank check for you to spend how you please. No. When a bank hands over money, it does so on the condition you spend the cash a very specific way. If you got a loan to extend your office space, that’s what you have to do. Online lenders are much more versatile; they let you spend as you see fit, which means you can jump on market trends, invest in new tech or do what you please. You’re in control.