Loans for Women Entrepreneurs

Written by Tobias Pang | Aug 9, 2022 9:33:57 PM

What do you really need to know about the WE-BC’s Business Loans for Women?

If you live in BC and are struggling to find money to expand or grow your business, We-BC has a subsidized Business Loan programme exclusively for Women. If you’ve been on the hunt for financing opportunities, you may obtain up to $150,000 for a loan from We-BC. This is perfect for those who need loans for market-ready start-ups, business expansion and business
purchases.

Supporting women entrepreneurs has long been a worldwide priority. Canada has long been one of the global pioneering promoting equality, especially in Entrepreneurship in Women. However, women account for less than one-fifth of small and medium-sized enterprises (SMEs). Because of this, the Canadian government has an ambitious plan to double the number of women entrepreneurs by 2025. Specifically, The BC government also aims to improve the province’s GDP by 21.2 billion CAD in 5 years by eliminating gender disparity. An NGO, We-BC works with various organizations across BC. Their main goal was to support aspiring women entrepreneurs and to support all the resources they need.

Who is We-BC?

Formerly called Women's Enterprise Centre, We-BC aims to empower women entrepreneurs to make an impact in BC’s communities and create opportunities in BC’s economy. We-BC is a not-for-profit organization, funded by Pacific Economic Development Canada (PacifiCan), that helped tens of thousands of women entrepreneurs in BC since the 1990s. With various partnerships in place, We-BC has various resources that can help and provide the lift required to help business owners realize their full potential.

Women-led business is omnipresent in all walks of life. Eradicating gender disparity and inequality could be difficult. However, the Business Loans for Women provides perfect opportunities for women in BC to realize one’s dreams.

How do We-Bc's Business Loans for Women work?

Bank loans are one of the most common forms of financing for small and medium-sized enterprises (SMEs). However, one may face conundrums in fulfilling various requisites from the bank. These factors or requisites could be both challenging and demanding to fulfil at times. Without thinking about arrangement fees, and compliance costs, We-BC has a streamlined process for their loan. Unlike traditional lenders, We-BC’s business loans are bundled with complimentary, professional support to help women that could make the most of it.

Eligibility

Does money have a price? It does! As much as it is an axiom with demand and supply, not all women in BC can apply for this loan. However, their eligibility requirement is not hard! The threshold is much lower and easier compared to traditional loan financing.

All applicants must be:
 A woman who owns and controls at least 51% of a business that is registered and
located in BC, or 50% for wife-husband teams
 A Canadian citizen or Permanent Resident
 She must be residing in BC
 She must also be over 19 years old

You will also need to provide We-BC with a valid Business Plan that shows Market research confirming demand for your product or service. But, don’t worry! We-BC has loads of resources to help you to draft a valid business plan. A credit score report is also necessary to submit to We-BC. While there is no minimum requirement for one’s credit score, the strength of the business plan and other factors would also be evaluated. Like most bank financing, you may use your asset to secure a loan that includes cash or stable non-RRSP investment. If you do not wish to secure your asset onto this loan, you may also opt for an unsecured loan. Despite the possibility of having a higher interest rate, a qualified guarantor can help in situations if you are unable to provide an asset to be secured.

Moreover, you may need to show your equity contribution. In other words, when you apply for a loan, you will need to show personal equity investment in your business. Equity, in other words, can mean your asset or your cash flow. This loan typically requires minimum equity of 25%.

Finally, you will need to demonstrate that you have the necessary skills to operate and manage a business successfully. Of course, you have to eloquently present how your business plan can be effectuated. You have to showcase your talent and demonstrate your experience to the panel. Your whole personal circumstances would be considered, not exclusive of, work experience, education, volunteer positions or another personal background.

Ineligible Projects

It may sound easy to fulfil the above requirements. However, not all projects are included in We-BC’s project. There is a list of exceptions; but not exclusive to, refinancing, loans involving secondary financing necessary. These are one of those prominent examples where you may be turned down from financing. Any investment that can be considered speculative and, investment in the research stage is also ineligible.

Basically, if you have a valid and sound business plan and you are a woman at the helm of your business, you are very likely to be approved for this streamlined financing loan by We-BC. With the necessary skills, talents, and experience to implement the plan, your company can strive for a strong, realistic, viable and affordable loan that makes your company strive.

Streams of Funding

With Competitive interest rates and interest-only payments for up to six months, the core funding program provides business loans of up to $150,000, and women who apply for $50,000 or less may qualify for the Equal Access to Capital (EAC) program which does not require specific security.

View full post