The UK economy depends on its 5.8 million small businesses – they make up 99.9% of all businesses and account for three fifths of all private sector employment.
According to 2018 research, less than one in five SMEs are led by women. There are double the number of male entrepreneurs compared to female entrepreneurs in the UK, which means the UK could be missing out on valuable services and products created and developed by women with big ideas.
Table of Contents
Female entrepreneurship in numbers
Why are small business loans for women so important?
How female-led businesses can invest and use a business loan
If a crucial part of your business plan needs funding, or you’re determined to improve a major part of your service, a small business loan can be just the boost you need.
Update and renovate your space
Repaint, redecorate, knock down walls – whatever you want! With finance from Capify, you can make your business premises bigger, more useful, more stylish, or install essential appliances and equipment.
Invest in new equipment and stock
Your business depends on its raw materials. Make sure you have everything you need to provide the best products and services.
Speed up everyday tasks
Make servicing your customers faster and easier. A small business loan can help you pay for efficient software and digital tools that can help you do more in less time.
Market and advertise yourself
Reach new potential customers online, in print, through the post, and everywhere else. Funding can help you focus your marketing efforts, roll out a smart strategy, and put the right time and resources into it.
Some important business loan terminology you need to know
Don’t know your APR from your interest rates? Here are some essential business finance terms, explained simply.
Borrower
You! The person borrowing money or raising finance.
Lender
That’s us – the people who lend your business the cash.
Principal
The amount of cash you raise.
Interest
The extra percentage you repay on top of the amount you borrowed.
Annual Percentage Rate (APR)
The average interest repaid by a lender’s customers every year.
Factor rate
This is an easy way to work out the full amount you’ll repay after interest is added. If you borrow £10,000 and the factor rate is 1.32%, you’ll pay back £13,200 in total.
Payments
You usually repay your loan through regular payments. You’ll keep making these payments until the loan is fully repaid.
Term
The amount of time it will take to pay your finance back.
Collateral
A physical item you include as part of your loan agreement. That means the lender can take it from you if you can’t repay the finance.
Guarantor
A guarantor helps you get a loan by promising to cover your repayments if you can’t afford them.
