You may think your business can’t get a loan because you have bad credit. You may think the fact that you’re a woman makes things even worse. You’re not entirely wrong, on either count. But you’re not entirely correct, either. Woman entrepreneurs canget small business loans, even if you have credit problems. Writing for the Small Business Administration, Caron Beesley notes that “historically, women have not had equal access to financial markets – much of it due to the systemic bias against women business owners. Another important reason women don’t obtain the funding they need for their businesses is because they may not understand the process, which frequently means they often don’t ask.”
Let’s fix that.
DEBUNKING THE BAD CREDIT MYTH
Credit problems plague many small businesses. In all industries. It doesn’t matter if the owner is a man or woman. You can develop bad credit even if your business is well-established. Sales dip unexpectedly. Collections are slow. A hot new competitor enters the market. Your POS system crashes and has to be replaced. You’re prepared for the expected, but you can’t foresee or control everything. Without enough cash to operate, you wind up missing payments. And your business credit goes from good to bad.
You know small business loans can help. Our job here at United Capital Source is to match you with the right financing and the right lender for your business. We know you need capital fast, to get back on your feet and keep moving forward. With us, bad credit is not an insurmountable hurdle. It’s just one of those things. Only one. As an alternative lender, we don’t focus on your credit score. We look at your current and future ability to pay.
Your business does have revenue. Depending on what you do or sell, you may make regular bank deposits. Or you may do a high volume of credit card transactions. Or you may commonly invoice customers or patients who take 30, 60 or even 90 days to pay. You can borrow against these revenue sources.
The idea that bad credit automatically disqualifies you from small business loans is a myth. And it’s just one of many myths about small business loans for women. So here’s something else you may not know: the right small business loans can help you repair your credit.
DEBUNKING MYTHS ABOUT WOMEN AND SMALL BUSINESS LOANS
There are degrees of bad credit. If yours is less-than-great but not too bad, it’s possible your business might qualify for a bank loan. Probably not a conventional loan. But this is where SBA loans can help your business. The Small Business Administration doesn’t actually loan money. But they do guarantee partial repayment should your business default. That can improve your eligibility with the bank.
You even have options. And being a woman is something of an advantage. Caron Beesley notes, “SBA loans are three to five times more likely to go to women than non-SBA loans. SBA’s flagship loans programs include 7(a) and 504, but women-owned businesses often need small-scale financing, so SBA microloans are another option to consider.”
In fact, the Small Business Administration offers numerous programs to help women entrepreneurs. You can learn everything from hiring and personnel management to marketing. You can learn how to grow your business through exporting or winning government contracts. You can sharpen your business finance skills. You can even get one-on-one mentoring through your local SBA SCORE program. And it’s all free. As a woman, you can take advantage of SBA programs to make your business stronger in every respect.
Myths about bad credit and business loans for women are holding you back. Don’t believe them. That only perpetuates your problems. And creates more sleepless nights. Instead, understanding the truth about how and when to access working capital can transform your business.
Beesley says business owners that seek assistance from an SBA Women’s Business Center have “significantly better survival rates” than those who don’t make that effort. You’ll be able to move past bad credit and into a growth pattern. Did you know that fewer than 3% of women entrepreneurs ever build their business to the $1 million+ mark? Why shouldn’t you be one of them?
TAKE CHARGE OF YOUR BUSINESS FUTURE
Get your cash flow under control. You can’t plan effectively if you can’t predict your income and expenses. Sure, the unexpected will still happen. But you’ll be better prepared. Small business loans can help you bridge expected or sudden gaps. They can help smooth cash flow on an ongoing basis. You can set a goal to create a cash reserve for emergencies. You can plan ahead to make larger purchases. And you can confidently borrow needed funds for a major expansion.
In other words, you can get squared away before your business suffers any more from bad credit.
The more you do to improve your business, the more you can benefit from timely borrowing. You’ll have more options, at lower interest rates and better repayment terms. The key is learning which types of financing best fit various funding needs.
United Capital Sources specializes in bad credit small business loans. Our goal is to see every small business grow and thrive. So we’re gender-blind. But I’ll admit we have a soft spot for women entrepreneurs. We know how much your dreams mean to you. We know you have to work extra hard. And we understand how much you’ve had to sacrifice to start and build your business.
I invite you to browse our UCS blog. You’ll see we work with women in every field of business, from restaurant and salon owners to contractors and doctors. We can help you get the small business loans you need, too. And that’s the truth, even if you have bad credit.