It’s hard for minority-owned small businesses to get access to the necessary working capital. Thankfully, there are funding providers that support the development and growth of this type of business. This article will help you, as a minority business owner, find the right financing option for your company.
Minority Business Owners in Need of Financing
Less than 20% of employer businesses in the U.S. are minority-owned, as the U.S. Census Bureau reports. This type of business has always struggled, however, COVID-19 has hurt them even more.
Stanford research carried out between February and April 2020, revealed that there had been a 41% dip in black-owned businesses’ operations.
One of the challenges associated with minority business funding is that they have a difficult time getting access to affordable small-business loans. The good news is that there are business grants and alternative financial assistance that can help bridge the funding gap.
The Right Business Funding for Minority Business Owners
Another challenge that minority business owners face when applying for financing is discrimination against credit scores or the business location. Happily, minority businesses can apply to high risk alternative online lenders in their field that can help them secure funding.
The thing is that this type of business is tabbed as high risk. Since COVID-19 has left many businesses urgently seeking funding, the role of alternative financing providers has grown even more. When applying to a high risk lender, it’s important to pay attention to several factors.
For example, you need to make sure the funding provider has experience and expertise to tailor loans specific to minority-owned businesses. Look for an alternative lender that specializes in small business loans for veterans, African Americans, women, and minorities of all types.
So, with a reputable business loan provider and payment processor that specializes in the high risk industry, you can be sure to get fast and hassle-free access to the funds, including merchant funding, you need for your business. There are reliable business financing providers that offer unique business loan solutions to merchants of any type who qualify.
Business Funding for Minority Entrepreneurs
When it comes to launching a business, securing capital is a critical factor to focus on. Unfortunately, minority business owners face challenges when applying for this type of financing. The good news is that there are alternative online lenders specializing in the high risk field that are ready to work with this type of business.
Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their merchant funding solutions. He’s experimented with various occupations: computer programming, dog training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.