Raising finance is a critical step for business growth, yet it remains one of the most challenging for many entrepreneurs—especially women and SMEs (Small and Medium Enterprises). Whether you're launching a startup or expanding an established venture, understanding your financing options can make or break your success.
A Guide for Women Entrepreneurs and SMEs in the current times
A brief guide book to consolidate all the information contained in the pages Raising Finance, Types of Finance, How to Raise Finance and the Finance Process can be accessed by downloading the following eBook:
Raising Finance - A Basic Guide for Women (as well as for all SMEs)
This basic guide breaks down modern finance strategies, with a special focus on women-owned businesses and small enterprises navigating today’s economic and regulatory climate.
Globally, women face disproportionate barriers in accessing finance. From lower property ownership rates to limited credit histories, systemic hurdles often make it harder for women to secure loans or attract investment.
Even in the current day and age, many women entrepreneurs lack access to formal networks, financial training, or mentors—factors that limit exposure to equity financing, bank funding, or government grants.
Empowering women to raise finance effectively is not only a gender issue—it’s an economic imperative.
Raising finance for business always remains a daunting task for most of the businesses. For women owned businesses the issue becomes even more difficult as most of them are not aware of how to get financing and to have financial management to manage the same and also because the collateral required to secure loans is usually not in the name of the entrepreneur concerned.
Here we have used the word 'business' but covers both entrepreneurs and professionals as both require funding at one point or the other.
Before you start raising finance, clearly define why you need funding and how much you really need:
Don’t overborrow or underfinance. Too much capital can lead to waste, while too little can stall your business before it gains traction. Use realistic cash flow projections and identify if your need is short-term (working capital) or long-term (asset acquisition, expansion).
Tip: Avoid using personal or consumer loans (like credit cards) for business purposes. These come with high-interest rates and personal risk.
Debt Financing
Debt involves borrowing money that must be repaid with interest. It's ideal for business owners who want to maintain full control and ownership.
Common options include:
Pros: Retain 100% ownership; interest is tax-deductible.
Cons: Requires regular repayments; collateral may be needed.
Equity Financing
Equity financing means selling a share of your business in exchange for capital. This is ideal when you're scaling quickly or launching an innovation-driven startup.
Examples include:
Pros: No repayment pressure; access to strategic guidance.
Cons: Partial ownership and decision-making may be shared.
Tip: Look into gender-lens investors and global funds supporting women, such as We-Fi, SheEO, and Women’s World Banking.
There are specific times when you should raise funds and from which suitable sources. For example if you are at the initial idea stage, you do not require large amounts. What you need is barely some savings. Once you have decided on a certain product, review the 'Product Development' segment and finalize your initial concept to develop a prototype of your product.
After you have prepared your prototype, decide to go into a small trial run based on the optimal minimum quantity. For this again you do not require large amounts you can manage with a small saving or with borrowed funds from friends or family.
Once your trial run takes off and the market accepts your product then plan on your larger preferably order-based quantity. You would need some financing for raw material, labour and if you are manufacturing, then you require financing for equipment. Start with a small number of equipment for which you can raise money through 'Lease Finance'. In that way you won't require additional equity.
Timing matters. Here’s a simplified roadmap:
If you have to raise a short term loan i.e. for one year, then go for Working Capital Financing to manage day to day expenses. Commercial Banks offer Running Finance Facility that can be used as required and replenished with the trade cycle.
There are many other schemes for the entire SME sector in which the segment of women entrepreneurs is also covered.
Let's understand the different types of financing that are available to fund your business , how to raise finance and the finance process following these links below...
In this decade, raising finance without traditional banks is more viable than ever:
Explore: Pakistan’s Fintech lenders that offer flexible credit to small businesses.
Knowing how to raise finance is one thing—managing it is another.
To grow responsibly:
A financially aware business owner is more credible to lenders and investors alike.
Raising finance isn’t just about capital—it's about strategy. Whether you're a woman solopreneur or a growing SME, there are more inclusive and accessible funding avenues than ever before.
✅ Assess your needs
✅ Choose the right type of financing
✅ Time your fundraising smartly
✅ Explore non-bank options
✅ Build financial capability
📘 Free Download: Raising Finance – A Basic Guide for Women and SMEs
Includes funding checklists, success stories, and pitch templates.