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      For Your Small Business March 20, 2025

      Empowering Female Entrepreneurs: Key Financial Tools for Business Success

      Long before women could legally open a bank account without a male cosigner or apply for a credit card, visionary female entrepreneurs were building empires and redefining American businesses. In 1903, Maggie Walker made history as the first woman to charter a bank in the United States. She founded the St. Luke Penny Savings Bank in Richmond, Virginia, to provide crucial financial services to her community when traditional institutions refused Black Americans seeking banking support.

      Around the same time, Madam C.J. Walker transformed her homemade hair care solutions into a must-have product that made her America's first female self-made millionaire while employing thousands of Black women as sales agents. Elizabeth Arden launched her cosmetics empire in 1910, eventually operating in 22 countries and demonstrating unprecedented global vision.

      Supporting these pioneers were groundbreaking organizations like the National Association of Colored Women (1896) and the National Federation of Business and Professional Women's Clubs (1919), which created vital networks when women were being denied fundamental economic rights and even the right to vote.

      Today's Women Entrepreneurs 

      When we consider the scale at which women are actively engaged in entrepreneurship today, we see how these early trailblazers planted seeds that have blossomed into an unprecedented era of female entrepreneurship. Women now lead multinational corporations, innovative startups, and transformative tech companies.

      What began with determined individuals navigating a system that excludes them has evolved into a powerful economic force. According to the National Women's Business Council's 2024 annual report, women-owned businesses account for 39.2% of American companies, employ 12.9 million employees, and generate over $3.3 trillion annually in the American economy.

      Yet, despite this progress, access to capital and essential financial tools, such as SBA loans, business credit cards, and business savings accounts, remain underutilized or misunderstood by female entrepreneurs.

      Building and sustaining a successful business requires more than just a great idea. It also demands strategic financial planning, reliable funding, and a clear understanding and active use of these necessary financial tools.

      Understanding the Financial Landscape for Female Entrepreneurs

      Access to capital is one of the most critical factors in the success of a business. It fuels growth, enables investment in new technologies and staff, supports product development, and provides a financial cushion during slower periods. However, studies show that female entrepreneurs often face unique challenges when seeking funding, including limited access to traditional loans and investment opportunities.

      Women-owned businesses sometimes encounter obstacles when applying for financing, such as lower loan approval rates, the need for extensive documentation, or other gender-based biases. Despite evidence demonstrating the success of women-led businesses, women must still prepare even more than men when seeking funding.

      To enhance the chances of obtaining funding, consider these common suggestions:

      Build a strong business credit profile

      A strong business credit profile is essential for securing loans, negotiating better payment terms, and maintaining financial stability. To develop this, female entrepreneurs should prioritize paying bills on time, reducing outstanding debt, and monitoring their credit scores regularly.

      Create a comprehensive business plan

      Lenders and investors look for precise financial projections and strategic growth plans. Female entrepreneurs should ensure their business plans outline revenue models, anticipated expenses, and long-term financial goals. A compelling plan not only increases the likelihood of approval but also serves as a guide for making informed business decisions.

      Explore alternative funding options

      Traditional financing isn't the only way for female entrepreneurs to secure capital. Alternative funding sources, such as SBA loans, grants, crowdfunding, and special purpose loan programs, can provide accessible and flexible financial solutions.

      Key Financial Tools Every Female Entrepreneur Needs

      From government-backed SBA loans to strategic credit management and business savings accounts, the following three financial tools can make a significant difference in building a strong and sustainable business.

      1. SBA Loans: A Strategic Funding Solution

      Small Business Administration (SBA) loans are an excellent option for women entrepreneurs looking to start or expand their businesses. These government-backed loans offer lower interest rates, flexible repayment terms, and more straightforward qualification criteria than traditional business loans.

      Benefits of SBA loans:

      • Lower down payments and longer repayment terms.
      • Access to capital even with limited collateral.
      • Support from SBA-approved lenders like Old National Bank, guiding business owners through the application process.

      2. Business Credit Cards: Manage Cash Flow and Earn Rewards

      A business credit card is more than just a spending tool; when used correctly, it can help manage cash flow, track expenses, and earn valuable rewards that can be used instead of cash.

      Why business credit cards are essential:

      • Cash flow flexibility: A business credit card can assist in covering short-term expenses without dipping into savings.
      • Credit-building opportunities: Establish a solid credit history for future financing needs.
      • Rewards and benefits: Earn cashback, travel perks, and other business-related rewards to support the development of your business.

      3. Business Savings Accounts: Prepare for the Unexpected

      Just as we need in your personal life, every business needs a savings account. A well-funded business savings account can provide financial stability and ensure business continuity during economic downturns or unexpected expenses that are a natural part of being in business.

      How a business savings account supports growth:

      • Builds a financial cushion for emergencies.
      • It helps set aside funds for expansion and investment opportunities.
      • Earns interest on unused capital, maximizing business reserves.

      Old National Bank’s Support for Female Entrepreneurs

      At Old National Bank, we recognize the unique financial needs of female entrepreneurs. We provide the resources they need to succeed. Here are a few ways we work to support female business owners:

      • Establishing a strong banking relationship: Rather than waiting until capital is urgently needed, we advocate for establishing a strong banking relationship sooner. A dedicated banking partner can provide tailored financial solutions, help navigate business growth challenges, and open doors to specialized lending and grant programs. Our financial experts offer personalized guidance.
      • Support Key Partnerships: Old National is committed to promoting diversity in entrepreneurship by offering specific lending solutions and grant opportunities for women-owned businesses. Our team supports organizations such as the National Association of Women Business Owners (NAWBO), the Women’s Business Enterprise National Council (WBENC), the Women’s Business Development Center (WBDC), and SCORE, which offer mentorship, networking, and business development resources to help women succeed.
      • Financial Planning Workshops: We host educational events to help women entrepreneurs strengthen their financial literacy and business acumen.

      Take the Next Step Toward Business Success

      Building a thriving business starts with access to the right financial tools and a supportive banking partner. Whether you need an SBA loan to expand, a business credit card to manage expenses, or expert financial advice, Old National Bank is here to help. We are committed to providing equitable access to capital to all business owners.

      Connect with our team today to explore financing options and resources to support your entrepreneurial journey.

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