Women entrepreneurs face a lot of obstacles when it comes to raising funds to run their businesses. Studies show that women entrepreneurs who ask for finance through traditional banks receive less amount with high-interest rates than men. The disparity exists across all loan categories, yet the root cause is difficult to determine. The good news is that the number of women-led small businesses has increased in the last ten years. Women all the world are now doing their bit to bridge the funding gap—and so can you.
If you are a woman in the business world struggling to get finance in this male-dominated society, you need to look for alternate forms of funding instead of settling for the first loan offer that comes your way.
Here are 3 ways to increase your chances of successfully raising funds for your business.
1. MoneyTap’s Personal Line of Credit
MoneyTap is an app-based online lending platform, which uses the latest technology to fund businesses like yours. The platform offers women access to affordable loan opportunities. It serves as a flexible loan option for expanding your business that may include hiring more employees, taking marketing efforts to the next level, and purchasing new equipment.
MoneyTap decides your creditworthiness online without the need of collateral or guarantors. It instantly approves the personal loan, thus making this type of financing flexible and accessible. If you are in need of a small amount of capital, MoneyTap’s personal loans can help cover financing needs quickly. This type of personal credit line is perfect if you have just-launched your startup or if you lack strong credit.
Advantages of MoneyTap
- You can withdraw as low as Rs.3,000 from your approved personal line of credit.
- You pay interest only on the amount you withdraw.
- You have flexible repayment options.
Income Eligibility Criteria for Self-employed Professionals or Business Owners
- Need to have income of at least ₹ 20,000/month
2. Raising Money from Family and Friends
You can get help with funding your business from your family and friends. It is one of the most common forms of funding available but women, out of pride, often tend not to ask for help from the people they know; especially financial help. But, don’t let your pride get in the way of your success. Funds from family and friends can come in the form of a gift, loan or an equity investment in business. Banks and lending institutions might not want to take a risk, but people who are close to you, like you dad or your husband, believe in you and are willing to take the risk of funding your business. You just have to ask!
Family and friends who are business savvy could be motivated advisors too. Better still, they are likely to be more forgiving than outside lenders while you go through your business’ ups and downs. So, keep your family and friends close, and ask them for financial help when needed. Just remember to pay back or show them value as if they were not your family and friends but a lender or investor.
3. Angel Investors
With women entrepreneurs making their mark in the male-dominated business world, a lot of angel investors have emerged to empower women. If your company is in the early stages of growth and if the amount required is less, taking help from Angel Investors can be a good choice. However, they expect a certain amount of equity in your business, so do your calculations thoroughly and then dive in.
No matter which funding option you choose to go ahead with, it’s important that you make an informed decision by going through and analyzing the pros and cons of each finance option.