Women Business LoanAll you need to know about small business funding in Canada.
Everyone deserves equal access to business loans, and the Canadian government works hard to ensure that laws and guidelines are in place to help women get the funds they need to help their businesses grow. Here are some opportunities for women to obtain business loans in Canada.
Credit Cards/Lines of Credit
Credit cards and other lines of revolving credit are some of the most popular and flexible resources that business owners have. These allow you to borrow only what you need and repay it over time, and as you repay that amount, you “free up” more of your line of credit for later use. The interest rates you qualify for with these types of programs depend primarily on your credit history, though, so if your credit falls below 650, you might find the interest a little daunting. Anything below 600 might actually disqualify you from obtaining this type of credit.
Traditional Bank Loans
Traditional bank loans are also quite popular in Canada, and thanks to regulations throughout the country, banks are not allowed to discriminate against women when it comes to issuing them. However, banks do have some stringent guidelines, and they will often require you to have anywhere from good to excellent credit in order to qualify. If you have average credit, you may still be able to obtain a term loan if you can put up collateral as a security, but this is often a risky practice and one that many business owners choose to avoid.
Working Capital and Merchant Advances
Merchant advances and working capital are available to women throughout the country, and the good thing about these is the fact that they do not require any kind of credit check. In fact, all you need is a few months in business and an average of about $7,000 in credit card sales each month to qualify. The lenders providing merchant advances and working capital are more interested in how your business fares than your personal credit history, making these opportunities for funding more widely available to not only women, but to everyone.
Private Term Loans
Finally, if you are interested in a more traditional type of business loan but you find that qualifying through a bank is a bit difficult due to your credit, you can check out many of the private lenders throughout Canada that specialize in business loans for women. These entities may check your credit, but this is not the basis of their lending decision. They will also consider things like your revenue, the type of business you own, and how you plan to use the funds to improve your revenue over time. Although the interest rates are higher than those associated with bank loans, they are still quite competitive in the long run.
Women have many, many options available to them when it comes to securing funding for their businesses. Anything from credit cards and unsecured lines of credit to private term loans and merchant advances can help you obtain the funds you need to help your business reach the next level.