Whether it’s for the pursuit of financial independence or self-actualization, there’s been a phenomenal growth in the number of women entrepreneurs nationwide, including in Ventura County, CA. Many female-owned businesses across all sectors, including health, retail, professional services, fitness, and hospitality, are thriving today. However, it has not always been smooth sailing for these businesses, especially during the COVID-19 pandemic. Nevertheless, with proper funding, especially access to small business loans for women in Ventura County, many of these enterprises can overcome financial and other key challenges.
Financial Challenges Faced by Women-Owned Business
The COVID-19 health and economic crisis have caused many women-owned businesses to face numerous financial challenges. Decreased sales led to declined revenues for some, while others had to close down temporarily. Many businesses had to cut budgets and wages and lay off staff while scaling down operations due to dwindling financial fortunes.
Small Business Funding Options for Women
Most of the financial challenges faced by women-owned enterprises can be sorted or alleviated with proper funding. Fortunately, there are plenty of small business loan options for women in Ventura County, CA, including:
- SBA Loans-The U.S. Small Business Administration (SBA) collaborates with various community development organizations in Ventura County, CA, to provide loans to businesses, including start-ups. It’s an excellent option for women-owned businesses with a good credit score.
- Business Line of Credit (LOC)-An LOC is suitable for meeting short-term capital needs to keep your small business running. Whether you need to quickly replenish inventory and keep up with sudden demand or repair a mission-critical asset, you can get a fixed amount of capital to fulfill your current needs.
- Equipment Loans– The inability to acquire, lease, upgrade, or replace mission-critical business equipment can result in the failure of your business. No matter your industry, consider getting equipment financing to avoid slowing or halting your small business operations due to the lack of key equipment.
- Small Business Lending– Delayed payments can impact any enterprise’s cash flows and day-to-day operations. However, if your accounts receivable looks good and you expect the money to arrive soon, you can take out a short loan to boost your cash flow and then use the future receipts to repay the loan.
- Bank Loans-When you have a good credit score, you’re more likely to qualify for a traditional commercial bank loan. Since this is usually secured financing, it’s one of the cheapest financing options for eligible women-owned small businesses.
- Inventory Loans-Don’t let the lack of inventory stop your small business from taking off. You can take out an inventory loan, for example, to buy stock for a retail store. The loan is secured against the purchased inventory.
- Small Business Grants-It’s always good to explore this option as it won’t cost your business anything. If your business has been negatively affected by COVID-19, consider applying for a grant. There are many grant programs for women-owned small businesses in Ventura County. However, grants are usually competitive and have strict eligibility criteria.
Support for Women-owned Businesses in Ventura County
If you’re struggling to set up a women-owned business in Ventura County, CA, there are plenty of locally available resources to help overcome your challenges. Access to bank loans is usually a major issue for many startups, making non-traditional financing options a necessity. Thus, consider working closely with appropriate community-based organizations, to access flexible capital when commercial banks won’t lend to you. You may consider seeking technical assistance and business training to help jump-start and grow your new business.
Want to learn more about Ventura County and the opportunities for growth here? Business Forward Ventura County is a countywide initiative and business resource hub committed to delivering the resources and services needed for local businesses to thrive. Contact us today!