Guide To Small Business Loans for Women

Access to capital is important for small business owners, and women entrepreneurs are no exception. Fortunately, there are many small business loan options available that can help women-owned businesses grow and thrive. Below we have listed some ways of acquiring loans to help female business owners secure funding for their ventures. 

SBA Loans

SBA loans have competitive payment terms and affordable interest rates. They’re great for small business owners, especially women. SBA loans can be used for any business purpose. 

How Does It Work?

The SBA is a government entity that doesn’t directly lend to businesses. Instead, it guarantees loans. Banks and other direct lenders issue the loans. The SBA subsidizes a portion of the loan in the event of default. Due to this guarantee, lenders are more likely to work with small business owners.  

How To Qualify?

You need a good credit score and a decent annual revenue to be eligible. Find an SBA lender and check if you meet the requirements. Wells Fargo, Celtic Bank, and BayFirst are some popular SBA lenders.

Funding Circle

If a woman-owned business is not eligible for an SBA loan, consider turning to online lenders for financing. Online lenders, like Funding Circle, provide a range of business financing solutions, including:

Short-term loans of three to 18 months for working capital

Medium-term loans of two to five years for women who do not meet the requirements for bank loans

Other innovative options, such as invoice financing

How Does It Work?

Women can apply for small business loans from Funding Circle with durations of up to five years and amounts ranging from $25,000 to $500,000. A Funding Circle loan has interest rates ranging from 4.99% to 15.99%. You can get your money five days after applying and submitting your paperwork.

How To Qualify?

You should have been in business for at least two years and have a credit score of 660 to be eligible for a Funding Circle loan. There is no minimum annual revenue requirement.

OnDeck

If you’re just starting out and looking for more flexible financing options, consider OnDeck. 

How Does It Work?

OnDeck offers both short-term loans and a line of credit. Women-owned businesses that want quick access to capital to pay for large, unforeseen purchases will benefit from a short-term loan from OnDeck.

How To Qualify?

You must have a minimum annual revenue of $100,000, a credit score of 625, and at least one year of company experience.

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