Women-owned businesses are responsible for trillions of dollars in annual sales and provide thousands of jobs across the country. Despite this impressive economic impact, they’re less likely than men to be approved for business loans. As a result, female entrepreneurs are often left to seek alternative financing solutions. Some of these include lending programs aimed specifically at women, mission-based nonprofit organizations and specialty grants that offer financial support without requiring repayment.
Business loans for women can be found at many different places, including banks and credit unions. These traditional lenders typically offer flexible terms and can tailor financing options to fit any needs. However, many require a strong personal credit score and business-operating history. They can also require a personal guarantee, which means you would be personally responsible for repaying the loan if your business fails.
Online lenders also offer business financing to women, although their qualification standards can be more relaxed. For example, SmartBiz offers a range of term loans with flexible repayment terms and low interest rates. They also offer an expedited application process, and waive certain fees that are typical with traditional lenders.
Other alternative financing options for women-owned businesses include accounts receivable factoring and equipment financing. These solutions involve selling outstanding invoices to a financing company that will pay you in exchange for a fee. This type of funding is particularly appealing for women who need fast access to capital and don’t have a lot of time to wait on a traditional lending process. business loans women