The Best Small Business Loans for Women
In today’s changing economy, women are making a name for themselves as entrepreneurs, thanks to a cultural shift to level the playing field for women entrepreneurs. However, the dream to own a business for women is just the beginning. Small businesses owned by women are a rapidly growing segment of the economy with increased competition. Women entrepreneurs are not immune to the difficulties of running a business. Being successful requires patience, dedication, and hard work, but most importantly, the financial reserves to set the wheels in motion.
Are There Special or Unique Women-Owned Business Loans?
The SBA (Small Business Administration) has designated different loan programs specifically for women entrepreneurs. The SBA are not online lenders, but the Office of Women’s Business Owners (OWBO) sets out guidelines and rules similar to most other business loans followed by approved SBA lenders. To qualify for these women’s business programs, borrowers will have to demonstrate to approved SBA lenders good to excellent personal credit and a solid business plan that provides confidence in the approved lender’s ability to lend and provide funding.
AdvancePoint Capital that specializes and has the products and services for acquiring business loans for women-owned businesses. Small business financing is no easy task, regardless of your gender. Dealing with a bank or credit union can certainly be a challenge when it comes to getting women small business loans.
Finding business funding programs specifically for women owned established businesses is something we know a thing or two about here at AdvancePoint Capital. We have a lender network that includes online lenders, banks, and alternative business lenders that offer small business loans and a variety of attractive alternative products with competitive interest rates and terms that fit small business owners needs. Let's find out how online lenders offer more products.
The 8 Best Financing Options for Women Owned Businesses:
Small Business Loans for
This is a business term loan which offers fixed rates, fixed terms and fixed payments that business owners can count on. There are minimum credit score requirements, other financial requirements, a personal guarantee and proof of ability to repay for loan approval. Interest rates and terms are attractive and small business owners seek out working capital loans quite often.
SBA Loans for
The Small Business Administration (SBA) offers a variety of affordable business loans that they set SBA loan guidelines and requirements for SBA loans. SBA does not service the loan, but provides guarantees to approved lenders who follow the loan program guidelines. Interest rates and terms are very attractive but a minimum credit score may be required to apply. Personal guarantee will be required and business assets as well as personal assets may be needed for collateral . Office of Women’s Business Ownership (OWBO) helps women entrepreneurs through programs coordinated by SBA district offices.
Merchant Cash Advance for
Merchant cash advances are an option when traditional business loans are not available due to bad credit, financial statement or other qualifying requirements . Cash advances are not loans, but future purchase and sale agreements. These agreements provide a lump some of capital based on the current revenue of the business. Repayment terms are based on a set percentage of future credit card processing sales deposits for repayment so repayment is not a fixed period of time, and is flexible, unlike a loan. This product is commonly provided by an online lender.
Business Cash Advance for
A business cash advance is similar to a merchant cash advance and a good option when declined by other business finance products due to qualifications like bad credit. This advance provides a lump some of money upfront based off of current sales deposits of the business. Repayment terms are based on taking a fixed percentage of future sales deposits until repaid in full.
Business Line of Credit for
Traditional lenders provide business lines of credit are a popular option for businesses who need to draw funds on demand without having to apply every time for money like a traditional loan. Credit lines due have a credit limit and can only be increased with lenders approval. You only have to pay interest on outstanding balance with a credit line. Very popular product for working capital.
Equipment Financing for
Equipment purchases can be expensive and in many cases will require either equipment loans and leases that use the collateral of the equipment as security so they can offer repayment over years and not months with monthly affordable payments.
Invoice Financing for
For those women owned businesses that invoice clients regularly, invoice factoring is a great solution to accelerate cash flow. Invoice financing advances the businesses invoices that are unpaid but within the terms of the invoice whether it be 15,30,45, or 60 days. This process allows the business to get paid once invoice is generated and not have to wait for payment within the normal terms.
Short Term Small Business Loans for
A Short term loan is available for businesses that don't qualify for traditional loans. They allow for a bad credit score, more tolerant with financial statements and cash reserves than normal term loans. Short term loan amounts may be less but a short term loan is easier to get approved because of the short term itself provides less risk to the lender.
Long Term Business Loans for
A business owner looking to expand there business will usually turn to long term loans because of the large investment of the expansion, the need for large loan amounts and the requirement to have affordable repayment terms based on current revenue streams. Personal credit history and business credit must be good for qualifications for long term financing.
Business Credit Card
Credit cards are a great compliment and additional tool for quick purchases and paying bills in a pinch. Credit cards are revolving lines of credit and not term loans. Minimum credit score may be required to secure a credit card. Interest rates varies depending on credit.
Business Needs for Getting Loans for a Woman Owned Business
- Working Capital
- Business Expansion
- Cash Flow Shortages
- Business Training
Alternative Financial Resources, Small Business Grants and Business Funding For Female Business Owners: Are there Business Loans Specifically for Women?
The OWBO oversees Women’s Business Centers (WBCs). These centers offer resources for women-owned small businesses seeking to level the playing field for all women entrepreneurs who still face unique obstacles in the business world. OWBO provides a variety of women’s business training, counseling, federal contracts and access to credit and capital.
The 8(a) Business Development Program – SBA loans helping small disadvantaged businesses compete in the marketplace, the 8(a) Business Development Program is a business assistance program for small businesses who are disadvantaged (which includes woman-owned businesses). The 8(a) Program offers a broad scope of assistance and resources to firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals through government contracting opportunities. The 8(a) Program is an essential instrument for helping socially, and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society government contracting opportunities. The program helps thousands of aspiring female entrepreneurs to gain a foothold in government contracting opportunities.
Women-Owned Small Businesses (WOSB) Federal Contracting Program -This program helps women-owned small businesses compete for federal contracts. Understand the eligibility requirements before applying.
SBA also works with federal agencies to increase contracting opportunities and achieve the government’s five percent contracting goal for women-owned small businesses. Keep an eye out for matchmaking events targeting both the federal and private procurement.
National Women’s Business Council – The National Women’s Business Council’s mission is to advance women entrepreneurs by growing America’s women-owned small businesses. The National Women’s Business Council offers a monthly, multi-series webinar specifically for women that serves as a platform for female entrepreneurs and business owners. The webinar connects them to key advocates, experts, and useful resources to bolster knowledge and skills, elevate entrepreneurial potential, and address business needs. The aim is to level the playing field for women-owned businesses.
National Women’s Business Council (NWBC) Fact Sheet
• Total Number of Female Only Owned Businesses: 9,878,397
• Percentage of total Owned Businesses: 36.3% Female Owned
• Employment totals from Women-Owned Businesses: 8,431,614
You can view the full report here.
The fifth annual State of Women Owned Businesses Report has just been published, and it shows that women's business ownership :
- The number of established women owned businesses in the U.S. continues to climb, and is now estimated to have surpassed 9.4 million enterprises—30 percent of all businesses in the country;
- The revenue generated by these enterprises is now estimated to stand at nearly $1.5 trillion, and has increased by 79 percent since 1997; and
- Women-owned firms now employ over 7.9 million workers (excluding owners), providing one in seven jobs among privately-owned businesses.
In fact, since 1997 there have been an average of 608 net new women-owned firms launched each and every day—and the rate just over the past year stands at 887 per day. The number of women-owned firms is increasing at a rate 1.5 times the national average.
Opportunity Fund – Fosters entrepreneurship in low-income communities providing access to even relatively small loans that help entrepreneurs make lasting changes in their own lives and in the communities they serve. Sometimes capital from other financial institutions is not always available to small businesses. Over 8,000 small business loans are denied every day. That’s where the Opportunity Fund comes in.
Women-Owned Small Business Organizations, Grants for Women Business Owners, Business Training, and Additional Support & Resources
- Association for Enterprise Opportunity (AEO)
- Association of Women’s Business Centers (AWBC)
- National Association of Women in Construction
- National Association of Women in Real Estate Businesses (NAWRB)
- National Association of Women’s Business Owners (NAWBO)
- U.S. Women’s Chamber of Commerce (USWCC)
- Women’s Business Enterprise National Council (WBENC)
- Women Impacting Public Policy (WIPP)
- Women’s Presidents’ Organization (WPO)
Women Small Business Grants Supporting Women's Business Ownership
Amber Grant – The Amber Grant Foundation awards $10,000 specifically for female entrepreneurs every month. At the end of each year, one of the 12 grant winners is awarded an additional $25,000. The application is relatively simple: Explain your women’s small business plan, describe what you’d do with the grant money and resources, and pay a $15 application fee.
Eileen Fisher Women-Owned Business Grant – Eileen Fisher, a women’s clothing retailer, awards a total of $100,000 to up to 10 women owned small businesses each year. To be eligible, women must make up at least 51% of your business’s ownership and leadership. Your business must have been in operation for at least three years, earn less than $1 million in annual revenue, and be focused on environmental or social change for women’s business.
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AdvancePoint Capital makes the loan application process a simple, straightforward experience.
How Do I Qualify for a Small Business Loan For Women?
Qualifying for small business loans for women entrepreneurs requires knowledge of what resources are available in the financing marketplace specific to women owned small businesses owners in search of a small business loan for women. Preparation and understanding are essential to get the best small business funding product to meet your needs.
5 Steps to Secure Loans for Your Women-Owned Business
- Identify need.
- Do your own research for resources with online business loans.
- Work with a small business loan originator with a wide variety of knowledge with specific business financing options and women business owners’ resources.
- Prepare required documentation for the application process.
- Shop, Compare, and you will save yourself a lot of time and money.
Advice and Tips for Women Business Owners When Searching for Small Business Loans
Women entrepreneurs have more opportunities than in years past to access the American Dream of self-employment and business ownership. Setting aside being a woman for a moment, when searching for a business funding product, it always should start with asking the question, why and what are you using the money for? Are you looking for startup business loans? Are you looking to work on a large project that requires long-term repayment? Did you use a cost versus benefit analysis? Have you looked at all other financing options and determined what the best options are?
In many cases, the answer to these questions may dictate what business loan product you will choose and drive you to determine the best financing product. Your choice should not be just based on rates. You need to balance the costs, terms, payment frequency, product flexibility and financial institution (or alternative lenders) you work with when making the best choice for your women-owned business.
How to Apply for Business Loans for Women-Owned Small Businesses
AdvancePoint Capital offers an effortless experience for small business loans for women that can help answer any questions you may have. Experience our products and services verses banks and/or credit unions. Our women customers who own small businesses love the fast, streamlined application process and high approval rates that come from working with online lenders like us.
Applying for small business loans for women with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. Small businesses start with this online form, fill out the short loan application page, wait a few hours for your approval, and then get your money!
*advancepoint does not offer startup or venture capital to businesses