Despite their outsized role in the economy, women-owned businesses often struggle to secure enough funding. In fact, they receive 31% less funding, on average, than their male counterparts. Thankfully, it is possible to secure a small business loan for women. By familiarizing yourself with the options and qualifying requirements, you can increase your chances of success.
In the past, many women entrepreneurs looked to business grants for financing. However, while these are free to obtain, the application process can be lengthy and the eligibility criteria can be restrictive. That’s why we’ve focused on loans that are friendly to women in this article.
One such option is the Small Business Administration’s 7(a) loan program. While this loan isn’t designated specifically for women, it provides some of the most competitive repayment terms, interest rates and borrowing limits on the market. Plus, it can be used for just about any business purpose.
Other alternatives include working capital loans and equipment financing. While these types of financing can be difficult for small business owners with bad credit, they may provide more flexibility than traditional lenders. For example, online lender National Funding offers working capital loans with up to $100,000 and does not require a personal guarantee.
Lastly, some women business owners turn to equity financing, which involves selling shares of their company in exchange for cash. While this method can be highly beneficial for established business owners, it’s important to understand the potential risks involved. loans for women starting a business