Summary:
- Female business owners can be overlooked when seeking out funding for their business, but For Kredit is looking to change that.
- Eligibility for unsecured funding: Business owners must be over 18; the business must operate as a limited company; the business must be based in the UK.
- Unsecured funding up to £500,000 with a repayment period of 1 – 24 months.
- Application is online only and successful applicants can be approved for funding within 24 hours of submitting the application.
What are small business loans for women?
It was revealed that women-led companies in the UK, only attracted less than 12 % of 1.3 million investments made in the UK which reflected how difficult it can be for female business owners to find funding. An unsecured business loan can help women-led companies in the UK find the funding that they need to improve their businesses.
How can I apply for a small business loan for women?
Female entrepreneurs looking to apply for unsecured finance can do so by applying online at the For Kredit website. The application is online-based so there’s no need for any long and exhausting paperwork.
The applicant simply needs to provide some basic details about themselves and their business. Applicants which are successful can have their unsecured business loan approved within 24 of their application being submitted. The application is compatible with desktop and mobile devices.
How much money can I receive by applying for a small business loan for women?
At For Kredit, we try to find the funding necessary for all businesses regardless of gender. Women-owned businesses can choose to apply for unsecured funding of an amount between £1,000 – £500,000.
Is my business eligible for a small business loan?
In order to apply for unsecured funding, the applicant must meet the following criteria to qualify.
- The owner of the business is over the age of 18 years old.
- The business is a limited company.
- The limited company is based in the UK.
Even though a business may pass the minimum criteria, it does not guarantee that the business will be successfully approved for funding as additional factors such as the credit score and business performance are also assessed as part of the application.
What are the repayment terms of a small business loan for women?
A business can choose how long they would like or need to repay an unsecured business loan, provided that it is within the required period of 1 – 24 months. The unsecured loan is repaid in monthly repayments and interest rates will also need to be repaid as part of the monthly payments (2% – 6%). There are no early repayment fees with unsecured funding so businesses are entitled to repay their debt early if they choose to.
Do I have to sign a personal guarantee when I apply for a small business loan for women?
Yes, a company director will be asked to sign a personal guarantee if they are approved for an unsecured business loan. Directors are asked to sign a personal guarantee as it legally ensures that any outstanding debt is personally covered should the business stop operating.
This means the director will have to use their personal assets to repay the outstanding loan amount. The personal guarantee helps to minimise the risk posed to the lender as it means the lender does not lose any more if the loan is not repaid.
If I have a bad credit score, will this impact my application?
Having a below-average credit score may impact the terms of the loan that is offered, but does not automatically mean you will be rejected for business funding.
It is likely if you have a worse-than-average credit score you may be offered a loan, but the loan amount may be lower and the interest rates may be higher. Applicants who have a really poor credit score may be refused funding, but it still might be worth applying.
The lenders will always perform a credit check on both the applicant and the business when assessing their application. This provides the lender with a better understanding of how the business performs and helps with ensuring that the lender meets responsible lending guidelines and standards. The lender will also assess other elements of the business such as bank statements and VAT returns.
Why do female business owners apply for unsecured small business funding?
There are many reasons why a female business owner may seek business funding options, that is why below we have provided some reasons that female business owners apply for small business funding.
Grow their business
One reason why a female business owner may apply for unsecured funding as it provides an opportunity to grow their business. Whether it’s to hire new staff or to purchase new equipment, unsecured funding can help take a business to the next level.
Fast approval
One of the benefits of an unsecured business loan is that it is faster to approve in comparison to other forms of funding such as a secured business loan. Successful applicants can have their funding approved within 24 hours of submitting their application.
The benefit of being approved quickly is that it allows the business to receive the funding it needs quickly, which can be useful in emergency situations such as if a vital piece of equipment breaks.
Flexible funding option
One of the useful parts of an unsecured business loan is that it can be used for a number of different reasons and situations. The funding option can help with the day-to-day running of the business, such as helping with cash flow problems or boosting the working capital of an organisation. Furthermore, the loan itself is customisable which allows the business to only borrow what they need and decide how long they need to repay the loan.
What other financing options are there for women entrepreneurs?
There are plenty of funding options available on the market and it is always worth checking what best fits the model of your business. Below are some really useful funding options that can be found on the For Kredit website.
FAQs
How much money can I apply for a small business loan for women?
Female founders of businesses can apply for unsecured funding between the amounts of £1,000 – £500,000 when applying for funding with For Kredit.
How can I apply for a small business loan for women?
To apply for a small business loan, female business owners can complete the online application at the For Kredit website. The application process requires the owner to provide some basic info about themselves and their business. Successful applicants can be approved for funding within 24 hours of their applications being submitted.
How long do I have to repay the loan?
Businesses can choose how long they need to repay the loan, provided that it is between the required repayment periods of 1 – 24 months. The loan is repaid in monthly instalments and interest is charged on the unsecured funding.