3 reasons term loans are better for women entrepreneurs

Did you know that over 30 percent of US businesses are owned by women? Our country’s awe-inspiring female entrepreneurs employed 8 million people and generated $1.6 trillion in revenue in 2015.

So why do women-owned small businesses only account for 4.4 percent of total approved business term loans nationwide?

Nearly 25 percent of female business owners decide not to seek a new term loan because they believe they won’t be approved, according to a survey by the National Association of Women Business owners. And their reluctance isn’t baseless: the research found that loan approval rates for women-owned companies are 15-20 percent lower than they are for male-owned businesses. We’re no Janet Yellen, but that seems like a lot of lost economic opportunities for women, the local communities who depend upon their success, and a national economy that thrives thanks to small businesses like theirs.

Term loans offer new opportunities to women entrepreneurs

At Funding Circle, we’ve set out to change that reality. Gender plays absolutely no role in our transparent, online term loan application process. We don’t care how you wear your hair; we want to hear about your credit history, your business’s performance, and your passion about the market opportunity.

Our philosophy? The most important part of any financing deal should be you and your business’s potential—not your gender, or your lender’s profit margins.

That’s why Funding Circle took the best parts of an SBA business term loan—like fixed once-monthly payments and no prepayment penalties—and created something faster and more flexible. The era of reluctant traditional banks and prohibitively expensive shorter-term financing with hidden fees is over.

Here are three reasons term loans are great for women entrepreneurs:

1. The cost of your term loan is clear.

We believe in sharing the true cost of your financing so you can accurately weigh your options and avoid getting stuck with costs you can’t afford. Anytime you consider a financing offer, make sure to ask about APR, servicing fees, and prepayment penalties. Personally, we think you should only pay for the time you borrow—but that’s just us.

2. You get the personalized attention you deserve.

Small business is 100 percent of our business, so we emphasize service and transparency at every step of your financing experience. That’s why your account manager will call you within 10 minutes of applying online to help you make the best decision for your business. Whether you need an honest backboard to bounce your ideas off of, or a friendly shoulder to lean on when it comes to sizing your loan, we’ve got your back.

3. Get the financing you need—not more, not less.

We work with you to size your monthly payment plan, and help you decide what monthly repayments best suit your needs. If things change, you can pay us back early, giving you a flexible loan that you control. If your spring sale is a massive hit, save money on interest by paying off your loan early. If you have a slower season than expected, rest assured that you can plan ahead since you know what your fixed monthly payment is for the life of the loan.

Behind every small business, there’s a story worth knowing. We want to know yours.

Meet Dr. Celina Hatt

Pawsh Place Veterinary Center founder Dr. Celina Hatt knows first hand some of the unique challenges entrepreneurs face—and admits that she just “didn’t fit in the box” that traditional banks were looking for. After feeling discouraged by the bank loan process, she found Funding Circle and received an affordable term loan within a week of applying.

Within six months, her client base has grown to over 700—and she’s doing so well she already needs to move to a bigger location. “I needed a lender who believed in my abilities as an entrepreneur. Funding Circle had compassion for me as a new business owner, and an understanding of my financial needs.”

Like many self-employed Americans, however, Dr. Hatt embraces the fact that her journey is only one percent finished. “Rome wasn’t built in a day! I now own two practices, one in Hawaii and one here in California, and I see no barriers whatsoever. I only see possibilities. My advice? Refuse to stand in your own way.” Learn more about Dr. Hatt’s story here.

Have you struggled to find an affordable term loan through traditional routes? Learn more about how Funding Circle can help you grow your business on your terms here.

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