Business Loans for Women
Female entrepreneurs are driving a major shift in the economy, with nearly two out of every 10 businesses now being owned by women. While that’s an impressive stat, it’s also one that reveals a problem: women are less likely to be approved for funding and receive smaller amounts of money when they do receive financing. The solution is to seek out women-centric loans and programs that are designed to level the playing field for entrepreneurs seeking access to capital.
Whether you’re looking to get started or you need to grow your business, these resources and lenders can provide the capital you need. They include online business lenders, nonprofit lenders and traditional banks. While they all have their own requirements, many of them are geared specifically toward women entrepreneurs, reducing the pool of applicants to consider and making it easier for you to secure funds.
Small business loans for women can range in size from a few thousand dollars to $1 million or more. The amount you’re able to borrow depends on your business type and how long it’s been in operation, as well as your company’s cash flow and credit history. You can also get a line of credit that allows you to draw on an available balance when needed. Most loan options come with a personal guarantee, meaning you’ll be responsible for repaying the debt if the business fails.
The Small Business Administration (SBA) has a number of different lending programs that cater to female entrepreneurs, including the SBA 8(a) program and the SBA Community Advantage program. These programs offer specialized support, training and federal contracting opportunities to help women grow their business’s revenue. SBA’s network of Women’s Business Centers (WBC) can also be helpful in sourcing funding for women-owned businesses, as they’re located throughout the country and offer counseling and training to entrepreneurs.
Other options for getting a business loan for women include online lenders like Noble Funding and Bluevine. These lenders offer accounts receivable lines of credit that can be up to $8,000,000. You can qualify for a line of credit from these online lenders by submitting invoices to be verified and then paying back the amount borrowed when it’s due. These lenders are best for companies with high revenues.
Banks and credit unions are another common source of business loans for women, although they often have higher rejection rates and longer application processes than online business lenders. If you do get a loan from a bank or credit union, you may have to submit a personal guarantee and you’ll typically be required to have good to excellent credit. Regardless of where you find funding for your business, it’s important to take the time to research all of the options. You can use an online tool like Lendio to connect you with a marketplace of lenders that can provide small business financing for women, so you don’t have to go through the process of contacting each lender individually. Business Loans for Women