Women business owners have a number of different financing options to consider. These include loans, venture capital and angel investments and grants. In addition, there are several online lenders that specialize in providing small business loans for women and have flexible lending requirements.
The most popular financing solution for women entrepreneurs is a business term loan. These loans can be used for growth projects or working capital needs and typically come with relatively low interest rates. However, many banks require a lengthy application process and rigid qualifications for this type of financing. Online lenders such as Funding Circle offer shorter application processes and less restrictive requirements for these loans.
Another option is accounts receivable financing, which allows businesses to borrow against future credit card receipts. This financing option can also be easier to qualify for than a business term loan, since it doesn’t require years of history and a high credit score. However, accounts receivable financing comes with high fees and should be considered carefully before applying for it.
Other financing solutions that could be suitable for women business owners include a merchant cash advance, which allows businesses to borrow against their future credit card receipts. This is a good financing option for women with bad credit, but it should be considered carefully before applying because of the high fees associated with this type of financing. Community financial development institutions, or CDFIs, may also provide small business loans for women with more flexible qualifications than traditional lenders. small business loans for women