Women-owned businesses may face additional difficulties when it comes to finding financing. Finding a lender who understands your specific needs and can create a tailored financing solution may prove essential – try online lenders who may offer more lenient lending criteria than banks.
Working capital loans are designed to cover short term expenses such as pay employees or cover overhead expenses. Unfortunately, the application process can be lengthy and the vetting requirements stringent.
Short-term loans
Short-term loans for women business owners include working capital loans and credit lines, small business grants and equity financing. Furthermore, there are organizations which offer various resources for female entrepreneurs from funding to networking.
As you search for business loans for women, keep these key points in mind: qualification requirements and loan limits as well as any personal guarantees required from you as the owner of your company.
Women-owned small business loans are widely available online from lenders that specialize in them, offering flexible borrowing limits and repayment terms, with some more lenient collateral requirements than traditional banks. Furthermore, these lenders typically have quicker application processing times – an attractive feature for busy entrepreneurs who lack time for traditional banking channels – and typically offer lower interest rates than bank loans.
SBA loans
As a women-owned small business owner, you require access to various financial resources in order to expand your operations successfully. Options that could benefit include federal grants and loans as well as credit cards that offer revolving lines of credit that offer rewards such as airline miles.
The Small Business Administration (SBA) offers loans with lower interest rates than most business loan types and can be used for any purpose, helping businesses start up or expand.
SBA loans can be obtained from nonprofit lenders, online lenders, banks and credit unions. Many of these lenders provide more flexible loan programs with easier application processes and qualifications requirements compared to traditional bank loan programs. Some also have special government set aside contracts tailored specifically for women or minorities that include additional requirements like certifications or experience; additionally these special programs may have lower borrowing limits than standard programs.
Bad credit loans
Women entrepreneurs with poor credit have several financing options available to them. Though it can be challenging to obtain bank or SBA 7(a) loans with poor credit scores, alternative lenders and nonprofit lenders often offer small business loans tailored specifically for these situations – Bluevine provides up to $250 000 business lines of credit without incurring fees for opening, maintaining or closing an account.
Grants
Women-owned businesses may experience difficulty when searching for funding, especially from traditional lenders. Luckily, grants exist to assist these women-owned businesses and eliminate some of their challenges when seeking funding – these grants do not require repayment, making them an excellent alternative to business loans. One such grant program offered by Yva Jourdan Foundation’s HerRise Micro-Grant program serves women of color entrepreneurs while SBA Microloan and Community Advantage funding options also exist to assist women-owned businesses.
Equity financing offers women entrepreneurs other financing options, such as giving investors a stake in your company in exchange for funds. Although equity financing may be hard to access, it might be worthwhile exploring it if your business requires large sums of capital. Another possibility for women entrepreneurs is working with a business incubator that provides training programs and networking events while connecting you to local lenders or community financing groups; to locate one near you visit the SBA website.
