Are you a woman, minority, or veteran business owner? Are you looking for a small business loan to start a business? There are many resources available to women entrepreneurs who need financing to start or expand their businesses.
There are over 10 million woman-owned businesses in the U.
S.
The U.
S.
Small Business Administration's Office of Women's Business Ownership (OWBO) helps women acquire financingto start or expand a small businesses.
The most common sources of funding for most business owners are personal savings, friends, relatives, banks, credit unions, angel investors, and venture capitalists.
Personal Savings: Many entrepreneurs use funds from their own personal savings to launch their business venture.
Business owners often use credit cards as a convenient source of cash to finance their business needs.
Friends And Relatives: Private sources such as friends and family members are often a place to go to seek out additional funding for a business.
Usually friends and family members don't charge interest or late fees as do financial institutions.
Banks And Credit Unions: When looking for funding outside of personal savings, friends, and family, the next most common source of business capital is a bank or credit union.
If the business owner's credit is strong and their is an already existing banking relationship, you may be able to get an unsecured loan or line of credit.
Angel Investors And Venture Capital firms: These firms provide equity financing for businesses.
Equity financing happens when a firm agrees to finance a business in exchange for partial ownership.
Types of Small Business Loans Banks and other financial institutions can provide personal loans or commercial loans.
Examples of personal loans include credit cards, and home equity mortgages.
Commercial loans include factoring, equipment leasing, commercial mortgages, business lines of credit; here are some of the options: Factoring: Provide interim working capital for a business temporarily in need of cash, and are typically repaid in a lump sum when accounts receivable are converted into cash.
Equipment Leasing: Used to finance new and used equipment.
Commercial Mortgage: Used to purchase, refinance, or renovate a commercial building.
Business Line of Credit: Offers the ability to borrow money repeatedly, up to your credit limit, without having to re-apply.
Lines of credit are particularly useful for businesses that experience seasonal income fluctuations.