Male entrepreneurs start a disproportionate amount of the restaurants and foodservice businesses in the country. This is partly due to the difficulty women entrepreneurs face in obtaining business loans for women.
At the same time, women tend to be less-represented among the top ranks of head chefs and owners, often being relegated to front-of-house management or line cooks.
All of that is starting to change, however, in part due to the availability of small business loans for women – specifically targeted at leveling the playing field for women entrepreneurs in need of small business funding.
The State of Women-Owned Businesses in the Restaurant and Foodservice Industry
At present, women-owned businesses make up only a small fraction of the total number of businesses in the restaurant and foodservice industries. There are various reasons for this, including historical discrimination within the industry.
Perhaps most importantly, in a dollars and cents perspective, women have had trouble obtaining any kind of small business funding in the past, even if they otherwise have the expertise, staff, facilities, and characteristics needed to start and lead a foodservice business.
Women typically make less money for the same work, and have lower credit scores than men with similar or identical credit histories.
For a long time, this has meant women have less access to small business capital than men, and women-owned businesses therefore have lower founding rates and higher failure rates than men-owned businesses.
Within the foodservice industry, this was only exacerbated by the other aforementioned factors, such as discrimination and low enrollment rates in advanced training programs for head chefs, foodservice business courses, and so on.
Finally, however, parity is starting to be achieved – over 49% of enrollees at the prestigious Culinary Institute of America, for example, are now female, a new high water-mark within the industry.
Now, the business and finance side needs to catch up – and thankfully it is, with women-owned small business loans available from many lenders.
These new small business loans for women can help ambitious chefs and businesspeople alike to found and operate the restaurants or foodservice businesses of their dreams.
No longer does the fact that they are a woman have to come with an associated financial stigma, and higher hurdles to clear in order to obtain small business funding. That’s the beauty, purpose, and goal of small business loans for women and women-owned businesses.
Small Business Funding for Women-Owned Businesses
At first glance, some might think that small business loans for women are inherently sexist. Why should women need a separate category of women-owned small business loans? The reality is that nothing could be further from the truth.
Because women-owned businesses have struggled for equality for so long, today’s efforts to make loans for women-owned businesses more available and more easy to qualify for are part of remedying past discrimination.
By leveling the playing field, more women entrepreneurs can find businesses, including in the restaurant industry, and are more likely to succeed.
Small business loans for women aren’t about giving women an unfair leg up, but rather bringing fairness to small business finance that has long been missing.
Therefore, women-owned small business loans can provide women-owned foodservice businesses (and other small businesses) with the much-needed capital they require to succeed on their own merits, and leave the gender of their owners and operators as a non-issue.
The Differences of Small Business Loans for Women
In force and effect, small business loans for women are typically easier to qualify for than generic small business loans. They have lower credit score requirements, meaning small business loans for women with bad credit are a real possibility.
This helps overcome the credit score disparity talked about above. Other requirements, such as time in business and monthly revenue are equally minimal compared to generic small business loans.
Therefore, small business loans for women are considerably more obtainable than small business loans in general.
Women-owned small business loans are typically available in the same amounts and durations as general-purpose small business loans, just with lower requirement thresholds as business loans for women and women-owned businesses.
How to Obtain a Small Business Loan for Women or Women-Owned Business
If all of this sounds too good to be true, rest assured it isn’t. How do you get a small business loan for a woman- or women-owned business? How can you get the funding you need to ensure your restaurant succeeds?
The best bet is to seek out small business loans for women from an alternative, non-bank lender. Private lenders generally have lower requirement thresholds to begin with, and are far more progressive on social issues than stodgy old banks and traditional financial institutions.
Many online private lenders offer small business loans for women-owned businesses at competitive interest rates, that are quite easy to qualify for as well.
BizFly Funding is one of the premiere alternative lenders offering quality small business loans for women within the foodservice industry and beyond. You can apply online, get approved quickly, and get funding for your dream restaurant in as little as 1 business day.
Don’t miss out on business loans for women – level the playing field and overcome discrimination in the best way possible – by ensuring your business is a massive success!
Small Business Loans for Women from BizFly Funding
They’re a leading provider of small business funding services in the US, including business loans for women.
They also offer several other small business funding products that can be valuable for women-owned businesses, including merchant cash advances, lines of credit, debt consolidation loans, and more.
Frequently Asked Questions about Small Business Loans for Women
If you are in need of a loan for a restaurant or any small business, and you are a woman or operate a woman- or women-owned small business, then consider small business loans for women.
These loans often are the easiest for women and women-owned businesses to qualify for – even when compared to traditional small business loans.
Government programs, banks, and especially private lenders go out of their way to offer loans for women-owned businesses as a way of leveling the uneven playing field in the world of small business.
These business loans for women can be an ideal choice for restaurants and other foodservice businesses, which typically have a harder time qualifying for small business funding than many other kinds of small businesses.
Loans for restaurants and foodservice businesses generally can be a bit harder to qualify for than in the case of other kinds of small businesses.
Restaurants and foodservice are considered generally high-risk industries, with a high rate of failure.
When you add the fact that small businesses and small business funding are already seen as high-risk into the mix, and then top it off with being a woman-owned business (and the attendant discrimination that results), and it can be quite a challenge to get a loan.
Fortunately, women-owned restaurants can turn to small business loans for women, especially those offered by private, non-bank lenders, as a means to finance their business.
This makes it much easier to obtain a loan than when you borrow from a bank or traditional financial institution.
Small business loans for women can also be called small business loans for women with bad credit, since they generally have quite minimal credit score requirements.
Banks and traditional lenders maintain high credit score requirements, meaning a 700 or higher is often required for a small business loan.
By contrast, alternative lenders who offer loans for women-owned businesses seek to address the disparity in society, where women tend to have lower credit scores than equally-well-credentialed male counterparts.
This means women entrepreneurs and restaurant owners can often obtain woman-owned small business loans even with a credit score as low as 500.
The easiest way to get a restaurant business loan, especially if you are seeking a loan for a woman-owned business, is to find a quality non-bank lender who offers online service.
BizFly Funding is a leader in this area, providing small business funding options in the US. Just be sure you meet the minimum requirements for your chosen small business loan for women (or other financing product), and apply online.
You’ll get an approval decision and consultation from the customer service team in short order, and can even get your funds as quickly as 1 business day if you are approved.
For women-owned small business loans, there’s no better choice than BizFly Funding.
Most lenders do not require any kind of down payment for a small business loan. The key consideration is usually collateral, not a down payment.
Secured loans are a type of loan that requires collateral. In exchange, the interest rates tend to be a bit lower.
Unsecured loans don’t require collateral, and are less risk for business owners, but higher risk for the lender. This means interest rates tend to be a bit higher.
In general, however, most small business loans – including small business loans for women – can be found in either secured or unsecured varieties depending on your chosen lender.
Rarely is there a down payment requirement with either of these types of loans.