How can women improve their chances of getting small business loans?

Women aiming to improve their eligibility for small business loans should take several practical steps to strengthen their application and boost their chances of approval:

• Build and nurture a strong credit score: Lenders closely examine both personal and business credit histories. Regularly check your credit report, clear outstanding dues, and keep your credit utilisation low to present a reliable financial profile.
• Prepare detailed and realistic business plans: A well-structured business plan that clearly explains your business model, market opportunity, and financial projections demonstrates seriousness and helps financial institutions assess the viability of your venture.
• Keep financial records organised: Maintain up to date balance sheet showing profit and loss statements and with tax returns. Well-documented finances make it easier for lenders to evaluate your business’s stability and credibility.
• Separate personal and business finances: Open a committed business bank account and avoid mixing personal expenses with business transactions. This transparency is valued by financial institutions and helps track business performance accurately.
• Participate in government schemes and training: Taking part in women-specific loan schemes or entrepreneurship training programmes can provide additional support, resources and sometimes even preferential loan terms.
• Network and seek mentorship: Connecting with experienced business owners or mentors can offer valuable insights into the loan process and help you avoid common mistakes.

By focusing on these areas, women entrepreneurs can present a stronger case to lenders while increasing their likelihood of securing the funding needed to grow their business.