Funding your woman owned startup business in New Jersey may be easier than you think. The key is knowing what funding options are available to you. Whether your business is one month old or one year old, there are ways to fund your woman owned startup business. The next step after knowing what options are available, is understanding what criteria you need to meet to get approved. Here are two ways to fund your woman owned startup business in New Jersey and how to qualify for each–
- SBA Microloan – This type of funding is popular amongst woman owned startup businesses. The SBA provides funds to a number of “intermediary” lenders that issue microloans up to $50,000 to woman owned startup businesses in their local communities. The average woman owned business gets $13,000 for their startup. The average interest rates for this type of funding is 6% to 14%, with terms up to 6 years for pay back. Woman owned business owners need a business plan, marketing plan, and 3 years of financial projections to apply with most lenders.
They may also require supporting documentation that provides insight into your financial situation. This includes your personal and/or business tax returns, a personal financial statement, your w-2’s and/or bank statements for the last 6 to 12 months. The great thing about microloans is that women with less than perfect credit can apply. Most lenders typically require you to have at least a 575 credit score.
- Unsecured Business Lines of Credit – This type of funding is simpler for woman owned startup businesses to obtain if the owner has good personal credit. The process is faster and much simpler than the process of obtaining an SBA microloan. An unsecured business line of credit is also revolving debt so as long as you pay down the balance it will be available to you on a continuous basis (as long as the lender wants to continue the relationship). All you really need to apply for an unsecured business line of credit is a business with a tax ID and the ability to meet the minimum personal credit requirements. Most lenders will not ask for the same type of documentation as SBA microloan lenders.