When it comes to getting a business loan for women, there are several factors to consider. The time you’ve been in business, your credit score, and the amount of revenue you have generated will determine your eligibility. Certain funding options may be easier to get than others. Business lines of credit, invoice factoring, and merchant cash advances all have lenient requirements, but they can come with high interest rates and fees. Women entrepreneurs should shop around and find the financing solution that is best for them.
One type of business loan for women is an installment loan. These loans can range in size from $300 to $1 million, with terms ranging from six months to five years. Interest rates are typically 7.5% to 34%. There is no time in business requirement for this type of loan, but borrowers must have an established cash flow to make monthly payments. This type of funding can be difficult to get for women with less-than-perfect credit, but it can be possible to get one if you have the time and patience to shop around.
StreetShares is another option for small business loans for women. Credibility Capital is an online platform that matches investors and customers based on mutual characteristics. Their business loan process makes it easier for women to get a business loan for women. To apply, you’ll need to explain the nature of your business and why you need money. StreetShares investors compete to fund your loan, so it’s essential to make a compelling story.
Another option for women looking to start a business is the SBA. The SBA guarantees loans made through its lending partners. Its 7(a) loan offers women up to $5 million in funding and has flexible repayment terms. But note that it’s important to keep in mind that the interest rate is higher than the Express Loan and that you have to be in business for two years to qualify. The SBA also has other loan programs geared toward women entrepreneurs.
Female entrepreneurs are creating businesses at unprecedented rates across the U.S.; over 40% of US businesses are owned by women. These businesses contribute over $2 trillion in revenues and create jobs for nine million people. But despite these impressive statistics, it’s difficult for women to get a business loan. According to the Federal Reserve, women were less likely to be granted their full request for a business loan than their male counterparts. This is why it’s important for women to seek financing from banks or venture capitalists.
Small business owners looking for funding should consider a SBA loan. While SBA loans aren’t exclusively for women, SBA loans offer competitive interest rates and payment terms, and are suitable for almost any type of business. Additionally, the SBA guarantees the loan, so that if the borrower defaults, the government will subsidize some of the loan amount. If this isn’t the right option for you, check out an online lender.