Business Loans for Women

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

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It’s no secret. Female business owners face far more obstacles when applying for funding than their male counterparts. Fortunately, some federal programs, online lenders, and other financial institutions have gone the extra mile to ensure that women entrepreneurs have access to the resources needed to help their businesses thrive.

Get Options For Funding A Woman-Owned Small Business

Get funding in as little as 24 hours. See your prequalified offers by filling out a quick online form. No industry excluded. SBA financing is available.

The Importance of Women-Owned Businesses

Did you know that women own approximately 40 percent of businesses in the U.S.? These companies employ over 10 million individuals, yet many face funding gaps that make it challenging to keep operations afloat. Why so? In short, they’re less likely to be approved by lenders for funding. So, it’s pertinent that these women-owned entities get the funding they need and deserve. 

Become a Certified Woman-Owned Small Business (WOSB)

The WOSB contracting program aims to help women-owned small businesses secure more federal contracting opportunities. 

Perks of Women-Owned Businesses

Although women entrepreneurs are more likely to be declined financing, some programs are designed to help bridge the gap. Furthermore, some lenders feature funding options exclusively for female-owned businesses, and there are several grant opportunities available to women on a local and national level. 

Steps to Get Certified as a Women-Owned Small Business (WOSB)

To get certified as a WOSB, visit beta.certify.sba.gov to submit a formal application. You can also use a third-party certifier to assist you with the process. 

Women Business Loan Options

SBA Backed Loans – 7(a) and 8(a)

The 7(a) loan program helps small business owners secure SBA-backed loans through traditional banks, online lenders and other select financial institutions. 

The 8(a) Business Development program caters to disadvantaged small businesses and helps them capitalize on funding opportunities. 

Business Loans for Minority Women 

Some online lenders and nonprofits feature business loans exclusively for minority women. However, the qualification criteria vary by lender, so it’s better to inquire before applying. 

Bank Business Loans

Some traditional banks offer business loans with competitive terms. However, the qualification criteria are quite stringent, making these loan products challenging to qualify for. If your business is relatively new, this means that you have less than perfect credit or your business revenues aren’t at a certain level. 

Microloans

Microloans are generally available through mission-based nonprofits. They seek to assist local small business owners who cannot secure funding through traditional banks, credit unions, or online lenders. 

Personal Loans

A personal loan could be a viable option if you have good or excellent credit. However, be mindful that the loan terms usually span three to five years, so your monthly payments could be on the high end and lead to cash flow issues in the future. 

Working Capital Loans

Working capital loans are installment loan products. Loan proceeds are disbursed at once and payable in equal monthly installments over a set period. You’re free to use the funds however you see fit as long as they’re for a business purpose. 

Get Options For Funding A Woman-Owned Small Business

Get funding in as little as 24 hours. See your prequalified offers by filling out a quick online form. No industry excluded. SBA financing is available.

Business Credit Card

Business credit cards are an option if you’re crunched for time and need to make a business purchase. However, they should only be used as a last resort since APRs are steep, and you could spend several hundred or thousands more in interest unless you pay the balance in full. 

Invoice Factoring

Invoice factoring gets you immediate cash in exchange for your unpaid invoices (or accounts receivable). It’s much easier to qualify for than a small business loan in most cases if you have less than perfect credit or have only been in business for a short period. However, this approach can be costly as you’ll pay the factoring company a fee, known as the factor rate. 

Merchant Cash Advances

Merchant cash advances let you borrow against future earnings to get the funds you need today to keep your business up and running. Your company could qualify for funding even if you don’t have perfect credit, and some lenders offer funding in as little as 24 hours. 

Business Lines of Credit

A business line of credit operates like a credit card. You’ll get access to a revolving line that you can withdraw from on an as-needed basis during what’s referred to as a draw period. Most lenders also assess interest-only payments during the draw period. You’ll make monthly payments (for principal and interest) over a set period when the draw period ends. This amount will likely fluctuate over time since the interest rate is variable. 

Is There an Easier Way for Women Business Owners to Get Loans?

You can spend hours searching for the perfect business loan, but there’s a much more efficient way to find the capital your company needs. Biz2Credit provides easily accessible funding options and serves the traditionally underserved community, such as women-business, minus the hassle. The application process is streamlined, and you can view funding options in one place. Here’s how it works: 

  • To get started, visit the Biz2credit website to create an online profile in under a minute.
  • Apply for funding in four minutes or less.
  • Connect with a funding specialist to discuss your options and select the best fit. 
  • Get your final approval and receive funds within 24 hours.

Depending on your company’s unique financial needs, you could be eligible for a working capital loan, term loan or commercial real estate loan. Visit their website to inquire about loan options available to you. 

Other Resources and Training Available for Women Business Owners

National Women’s Business Council

The National Women’s Business Council serves as an independent voice for female entrepreneurs. It offers advice to the President, Congress and SBA on behalf of women-owned businesses. 

Office of Women’s Business Ownership

The Office of Women’s Business Ownership assists female entrepreneurs through programs on capital, credit, business training, counseling and federal contracts offered by SBA district offices. 

Women’s Business Centers

These centers offer tools and resources to help women entrepreneurs tackle and overcome common business-related challenges. 

Ascent online learning platform

Ascent is a free online learning platform for women entrepreneurs that features exercises, tools, fireside chats, infographics, videos, self-assessments, success stories and more. 

Women Veteran Entrepreneurship Training Program

The Women Veteran Entrepreneurship Training Program awards small business development resources to both female veterans and military spouses. 

National Association of Women Business Owners

The National Association of Women Business Owners is a cohort of more than 10 million women-owned businesses nationwide that work to promote economic development and foster innovation within the entrepreneurial community.

Biz2Credit

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