Without a doubt, women have made a remarkable establishment in entrepreneurship. In the last 20 years, the percentage of female entrepreneurs has increased by 114% which totals up to 252 million entrepreneurs. 25% of these businesswomen seek personal loan from licensed money lender.
With all that said, online business or also known as eCommerce is one of the best business ideas for women who’s still new in entrepreneurship world. You do not need a very big sum of budget but would still be able to thrive in business. You know what they say, start small and think big. From there, women entrepreneurs can climb up the ladder and become bigger business owners. Namely, Sophia Amoruso first started out by selling vintage clothes on eBay before founding the mega companies- Nastygal and Girlboss and started becoming a successful businesswomen. That is a very ideal and achievable scenario for most women of this era!
The impact women bring to the field has been enormous and very promising in terms of growth. It is proven that women most definitely can have a greater success but they also tend to take fewer risks. For example, like mentioned before, only 25% of women entrepreneurs seek outside funding for their business which resulted to most women’s business to be on the smaller scale compared to the opposed gender. This is due to the fact that many women believed their job activities are too insignificant to qualify as a business, and that they would be automatically rejected a loan if they did. This is not entirely true. There are a variety of professional financing options easily available for women nowadays. 31% percent of women who applied for loan to start up for business are approved and not only that, women also have better loan repayment history! To start up your business, an amount of money is needed to ensure the smooth launch of your business.
When it comes to loans, licensed money lenders are a better alternative to banks since they generally have faster approval. But borrowing from them might not be something that the majority looks up to the most.
“Is it safe to borrow from a licensed money lender?” is one of the many stigmas that people have when it comes to borrowing from them.
Before you start borrowing from a money lender for business purposes, here are some things to consider.
Things to Consider Before Borrowing from a Licensed Money Lender
- Use an internet comparison tool to find the best personal loans with the lowest interest rates.
When you’re ready to seek for a loan, don’t limit yourself to one lender. Compare rates from traditional banks, credit unions, internet-only lenders, and peer-to-peer lending companies using an online comparison tool.
- Keep up a healthy credit score.
A personal loan with a lower interest rate is more likely to be approved if your credit score is good. If you believe you might need a personal loan in the future, you should start working on improving your credit score now. Make sure there are no mistakes on your credit report, pay your payments on time, and maintain your credit usage percentage under 30%.
- Think about if you truly need the additional loan
Take a look at the additional terms of the loans on offer once you’ve identified the best interest rates. It’s typically a good idea to avoid instalment loans that come with expensive credit life and credit disability insurance plans, for example. These regulations should be optional, but money lenders frequently portray them as necessary for anybody seeking a loan. Some applicants will be advised that the cost of the insurance policies can be rolled into their personal loan, allowing them to finance the add-ons using borrowed funds. This increases the effective interest rate of these already high-interest loans, making them even more costly. A little short-term loan isn’t worth putting yourself into long-term debt that you can’t repay.
- Make sure there is no penalty fees.
Pay attention to any fees or penalties that make it more difficult for borrowers to repay their personal loans. Prepayment penalties, for example, are the type of penalty fees charged if you make additional payments on your loan. Read the loan terms and conditions carefully and look for anything that says that there are no prepayment penalties.
- Avoid money lenders with exit fees.
Exit fees are fees that certain money lenders charge you after you pay off your loan. You shouldn’t have to pay an exit fee or deal with a lender that wants to punish you for repaying your personal loan.
Tips on how to pick a personal loan carefully include the following:
Make sure you are prepared to make regular repayments before taking out a loan from moneylenders. Create a budget and make sure you have enough money. It’s also crucial to be familiar with the borrowing procedure and be aware of any additional expenses. Compare the many personal loan options accessible to you in order to discover the best personal loan for your requirements and financial situation.