Business Loans For Women

Business Loans For Women

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated June 11, 2021

For any female business owners or entrepreneurs out there, securing the right type of financing is essential for workplace efficiency and success. After all, your business is important and worth every ounce of effort that you’re putting in. Since running or investing in a business can take lots of time, effort, and of course, capital to function properly, you shouldn’t have to worry about where your funding is coming from.

Is your business a desirable candidate for financing? Find out here.

No business should be without the best financing available. That’s where Loans Canada can help. We can match your business with an affordable business financing option that meets your needs.

What Types of Loans Can I Get?

In today’s financial world, there are loans and financing services for almost any area of business management. Here are just a few of the loan types that are readily available and can be of great use to any female business owner or entrepreneur:

  • Loans for equipment and heavy machinery
  • Leasing and financing for personal or company vehicles
  • Loans for down payment purposes
  • Commercial leasing
  • Commercial mortgage loans
  • Business credit cards and lines of credit
  • Bad credit small business loans
  • Government financing (grants, income support, hiring/training subsidies, etc.)  
  • Loans and programs to consolidate business debt

Looking for a way to deal with your small business debt? Check this out.

What Kinds of Industries Are Eligible For Business Financing?

Whether you’re a manager, proprietor, or investor, almost any woman-run business can be eligible for business loans and financing programs, no matter what industry profession your workplace happens to be part of. While the possibilities are near endless, here are a few of the more notable industries that would qualify for (and benefit greatly from) appropriate business financing:

  • Doctor’s offices, dental practices, and other medical facilities
  • Restaurants, coffee shops, bakeries, and other service industry locations
  • Bars and nightclubs
  • Mechanic’s garages and car dealerships
  • Commercial retail locations
  • Gyms, dojos, exercise studios, and other types of fitness clubs
  • Day spas, health clinics, and wellness facilities
  • Barbershops and salons (hair, nail, beauty treatments, etc.)
  • Factories, warehouses, and other manufacturing/shipping related industries
  • Veterinary clinics, pet groomers, pet stores, and animal related facilities
  • Pharmacies
  • Motels, bed & breakfast spots, and vacation rental locations  

Does My Credit Matter When I Apply For Business Financing?

Generally speaking, yes it does. When it comes to any business financing source, no matter what type of service you’re applying for, the lenders involved need to confirm that you have the financial ability to pay them back. For that reason, at the time of your application, your credit health may become an important factor. While some lenders won’t check your credit during their application process, being that your business loan or financing service may be quite costly, it’s best to go into the situation with the expectation that your credit will be factored in somehow. If that’s the case, they may validate your credit health by inspecting the following:

Your Credit Report

A credit report is a detailed file that includes a history of all the actions related to your credit accounts. If you’ve activated and used, or been denied for a credit or loan product of any kind, your potential lender can see a record of it and will judge your creditworthiness based on it. A healthy looking report leads to better chances of approval, as well as more affordable interest rates for any business financing products you apply for now or in the near future.

Click here to see how long information stays on your credit report.

Your Credit Score

Along with your credit report, lenders can also view your credit score, which ranges from 300 to 900 in Canada. While your report contains all your credit-related details, your score is a more simplistic way of showcasing your credit health and strength as a credit user. The closer your score is to 900, the more worthy of credit you’ll be. Generally speaking, a score of 680 or higher means you have good to excellent credit and will once again put you in range of the best approval odds and interest rates.

Canadian Credit ScoreCheck out this infographic to learn how your personal credit score is calculated. 

Your Credit and Payment Histories

Also contained within your credit report will be your history of credit usage and debt payment. Your credit history will show them all the different types of credit and loan products that you’ve been using up to that point. Your payment history, of course, shows them how you’ve been managing those products. A culmination of these two elements is another important part of their examination process. Obviously, the longer you’ve been using a variety of credit products and the more responsibly you’ve been paying off their related accounts, the more creditworthy you’ll be deemed.

If you have bad credit, you can rebuild your credit score with these programs.

Other Factors They May Take Into Consideration

Some of the other notable aspects of your financial background that your potential lender may need to check include:

  • Gross monthly and yearly income
  • Net-worth and personal profile
  • Employment history
  • Business plan
  • Credit rating
  • Consumer proposals, bankruptcies, and other financial delinquencies
  • Ability to provide assets (home, car, etc.) for collateral (optional but helpful)
  • Ability to provide a cosigner

Make sure to read this before you apply for a loan of any kind.

What Can Business Financing Be Used For?

Let’s assume that you’ve been approved for the financing your business needed. If so, congratulations! You can now use that financing to pay for almost any expense involved with your business, such as:

  • Buying office supplies and equipment
  • Repairing, fueling, maintaining, or upgrading any company vehicles
  • Compensating your current employees
  • Hiring and paying new employees
  • Purchasing new uniforms for any staff members
  • Supplying safety gear  
  • Installing proper safety equipment
  • Mortgaging or leasing your primary or secondary workspace
  • Marketing, advertising, or research purposes
  • Repairing or making improvements to any workspace
  • Buying or leasing appropriate equipment, technology, or machinery

Be sure to watch out for predatory small business lenders.

Funding Female-Run Businesses

Running a female owned and managed business is investing in diversity and understanding that successful companies truly flourish when were is a wide variety of voices and opinions contributing to a vision. While female entrepreneurs should have no difficulty getting the funding they need from more traditional lenders like banks, there are specialized lenders that make it their mission to work with these women.

In fact, there are plenty of reasons to fund a female-run enterprise, including but certainly not limited to:

  • Supporting diversity and providing assistance where it may be needed
  • To be part of a vast change in the social structure of the business world
  • According to Canadian statistics, women now represent nearly 50% of business owners or co-owners in Canada and are responsible for earning over $178 billion in revenue over the past few years.
  • Statistics also show that women now hold more collegial and educational certificates than men

The Female Workforce and Loans Canada

If you are the owner of a female-run business or any type of business that is committed to providing jobs to a wide and diverse range of people, you may be able to benefit from specialized business loans. Loans Canada can connect you with the best sources of business loans and financing options in Canada. Contact us or apply today!   

Rating of 5/5 based on 1 vote.

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and traveling the world in search of the coolest sights our planet has to offer. Bryan uses the BMO Cash Back Mastercard to earn cash back on everything from boring bill payments to exciting excursions. He is also a strong saver, holding both a TFSA and an RRSP account in order to prepare for his future while taking full advantage of tax benefits.

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