- August 31, 2018
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Best Resources for Women Seeking Business Funding
Funding & Business Loans Resources For Women
If you are a woman entrepreneur seeking startup business funding or other business funding services to expand your enterprise, this article introduces you to the best resources for women seeking business funding. The process is simple, and Prosperum Solutions explains how to obtain a quick and simple business loan below.
One of your first objectives will be to determine what your lender requires in order to grant a loan to you. If your lender has a website, that is a great jumping off point. There you should find information about whom you need to contact and usually you can download their loan application form. Read it carefully to find out what they will be asking for when you submit your application. Making sure you provide all of the required information will ensure your loan is on a fast-track and your loan application process is expedited without delays. You can begin your business funding search in sites such as the Small Business Administration (sba.gov) or Prosperum Solutions.
When you consider applying for a small business loan, it is beneficial to be thoroughly knowledgeable about the lender’s approval requirements so that you may receive approval for a business loan. Knowing how to get a small business loan may seem like a difficult and complex process, however, in reality it’s quite feasible when you are armed with the right information.
You should take the time to investigate your own personal credit score as well as that of your business’ credit scores. Also, be sure to check your credit history as reported with the three top credit reporting companies. There is no guarantee that these companies have the correct information, so if there is an error, you should get it corrected before you begin the loan application process. Also if you have unpaid liens or bad debt on the record, contact that lender and arrange to fix the problem. Document your contacts and the solution you work with them so that you can show that to the business funding service for them to see that any problems have been addressed and rectified. Most credit reporting companies take at least 3-6 months to correct the information, so don’t assume that once you have solved the problem it will appear right away which is one of the reasons documentation.
Always deposit your revenues into your business account before paying yourself and your vendors. These deposits are proof of your business’ cash flow potential to the lender. Timely payments to vendors,business overhead expenses, and taxes will make your business shine on paper for a potential lender.
The purpose of a business plan is to detail the mission, strategy, and goal of your business. A business plan will identify who you are, what products and services you provide, the target demographic of your customers, and your plan for achieving revenue and profits.
This business plan is critical to applying for and receiving your startup business funding – it is a factor that will be taken into consideration along with your credit history by startup business funding services. Include the following categories within your business plan:
- Detailed description of your business, products and/or services.
- Outline of your business’ financial projections for future growth.
- Compilation of the research you performed to support your financial projections – solid marketing data, economic data, demographic data, and target customers, including a description of their needs and your plans to meet their needs.
- Complete marketing plan including details of what platforms you intend to use to reach your target market – social media, email, newspaper ads, magazine ads, etc.
- Detailed executive summary included at the introduction of your business plan that must contain a professional and concise picture of your complete plan.
Remember, your business plan must be complete, and it must show you have thought it through. Consistently keep your business plan up to date by researching and developing your financial projections, marketing strategies, and business product and service development efforts. Potential lenders are looking for what you have accomplished, how you are presently displaying your efforts, and what your business plan is going to be in the future.
In deciding the type of loan to obtain, first, determine what your needs are for the business loan. There are a variety of financing packages such as small business loans, lines of credit, specialized loan programs or business grants available through the Small Business Administration (sbs.org).
Careful planning of how you will use the funding will also help determine what type of loan you will seek: emergency funds needed to keep your business operating during an unforeseen crisis or economic slump; long term funds required to invest in operating equipment or human resources for expansion; an influx of cash in order to help your business run more efficiently and productively; funds to increase inventory, working capital, or a real property acquisition to expand your operations. Some umbrella reasons for obtaining a small business loan would be to assist you in growing your business ideas and innovations, to increase your business profile through marketing, or to obtain a larger space for your operations.
Decide if it is in your business’ best interest to obtain a short-term or a long-term loan. In order to finance the purchase, improvement, or expansion of fixed assets – equipment, vehicles, and real property, a long term-loan is contemplated by business funding services. Business funding services extend short-term loans to finance assets and liabilities like accounts receivable, inventory, and accounts payable.
Business funding services offer short term loans to purchase inventory is usually a line of credit or short-term commercial loan. The inventory that is purchased with the loaned funds becomes the collateral securing the repayment of the loan.
Like those of inventory financing or lines of credit, business funding services can be used to increase working capital for startup and growth in performance. These type of business funding services can be used to meet payroll and recurring payment obligations as well as to supplement inventory to satisfy foreseeable increases in consumer demand.
If your small business is looking to purchase real property, business funding services may be used to finance the acquisition. Should your small business need a loan to accommodate its growth while still generating profits, a business funding service may be very willing to approve a long-term commercial real estate loan. Business funding services generally want to see their local economy grow and provide jobs within their community.
Acquiring knowledge is the primary factor to quickly and successfully obtaining a lender’s approval of your small business loan. Your knowledge about business funding services will help you gain pre-approval or simplify the approval process. Knowing and correctly using the best resources for women seeking business funding is very important to make sure your business loan is approved.