Starting a Spa Business: Finding Small Business Funding for Women Entrepreneurs

One of the most complicated aspects of running your own spa business is having access to working capital, funding and loans. As many new business owners quickly realize, finding capital to start, nurture or develop a business can be a wearisome and difficult experience, especially if you are a woman entrepreneur.

There are so many different reasons a small spa business will need funds and this may determine where you go to find the funds. Investors are interested in knowing how much money you are looking for, what the money will be used for and they will want to review your financial statements (or your business plan if you are a new business just starting out). Basically, they want to be sure that if the funds are loaned to you, it will be repaid.

There are a large variety of loan programs available for women business owners. These range from private investors to government loans to bank programs that cater to women in business.

Government Loan Programs for Women

The government is always trying to help women and other minorities secure funds to grow a business since it is in the best interest on the economy and employment trends to do so. In the United States, the SBA works with private investors to secure loans for women in business. However, most large countries have similar programs. Government secured loans offer less stringent requirements and therefore are more accessible to many business owners. Of course, the basic requirement is your ability to repay the government loan so they will look at your personal credit history and your business experience.

Micro Loans for Women Entrepreneurs

You may also want to explore the world of micro lenders that are offered by organizations such as Women Incorporated (WI) and the National Association of Women Business Owners. They specialize in finding funding for women in business. They have a website at www.nawbo.org.  They have powerful alliances that mean millions of dollars in financing for women each year.

Bank Loan Programs That Cater to Women in Business

No matter where you live in the world, visit the website of any major bank and somewhere in their small business section you will find a program that assists women in business to find funds for business start-up and growth. The types of loans available will vary from bank to bank and country to country. Some of the types of bank loans available may include business loans, accounts receivable loans, line of credit or a mortgage equity loan.

Investors Interested in Women Owned Business

An venture capital or angel investor may be the way to go if you need a large sum of money, and you have a solid business plan and track record.  As a general rule they are experienced business people with a strong entrepreneurial spirit. There are a few specific firms that cater to women in business:

Axxon Capital
www.axxoncapital.com

Ark Capital Management
www.arkvc.com

Fund Isabella
www.fundisabella.com

New Vista Capital
www.nvcap.com

Viridian Capital
www.viridian-capital.com

WomenFirst Capital Fund
www.womenfirstcapital.com

Women's Growth Capital Fund
www.wgcf.com

Angel2Angel
www.Angel2Angel.com

Seraph Capital Forum
www.seraphcapital.com

WomenAngels.net
www.womenangels.net

If you want to get further information, start by doing a search on Google or Yahoo. As your search criteria, try “investor women business” or “business loan women” and your country. For example “women business loan Canada”. This will give you search returns that are relevant to your situation and your location. This is important because as a rule, a Canadian cannot borrow money from a foreign bank. Do not be afraid to approach your banker and ask specifically how the bank helps women in business, and how can they help you. If you find your bank is not that interested, maybe you should consider changing banks. There are many banks and credit unions that are specifically for women.