5 Best Small Business Loans for Women in 2020

Ladies, are you stuck in a money paradox?

You have to spend money to make money. However, if you’re a woman, it can be hard to get the startup money you need, to grow your business.

Research shows that women have a harder time getting loans to fund their business ideas. Last year, startups with women founders received less than 3% of the entire venture capital fund. If you’re tired of not getting the money you need and deserve, we can help.

Read on to learn about 5 small business loans for women.

1. Small Business Loans for Women

First, we suggest you start looking at opportunities the SBA has to offer. The small business administration won’t make any loans to you directly.

However, they can help connect you to some of the nation’s best lending partners. Every lender they connect you with will have reputable small business loans for women. There are also several small business loan programs that women can get access to thanks to the small business administration.

How Do SBA Loans Work for Women?

As you begin looking at the different lenders the SBA offers, you’ll notice a familiar trend. Each loan will have specific borrowing amounts, including borrowing caps.

The borrowing cap will be the maximum amount that any woman can borrow from any one institution. Next, you’ll notice repayment terms. The repayment terms are the number of years that you have so completely repaid your loan.

One of the best things about using the small business administration is that they work to put you in touch with loans that have low-interest rates. Also, you’ll only be dealing with qualified borrowers.

2. Loans for Large Purchases

One type of loan you’ll notice popping up is the 7 (a) loan. This loan is great for small businesses looking to make a large purchase, such as financing a real estate opportunity.

Here are a few ways you can put 7 (a) to work for you as a woman entrepreneur

• Funds to manage payroll
• Ability to refinance business debt
• Business purchases such as vehicles
• Purchasing land for your company
• Grand openings for new locations

The SBA requires that any business owners who apply for a 7 (a) loan, meet the definition of a small business.

3. Online Loans

If you don’t qualify for any of the SBA loans for women, don’t worry, there’s still hope. There are plenty of online lenders who will be happy to help finance your business.

Online lenders typically provide short-term loans. You can use short term loans to help cover your working capital.

Fast Money

Another reason you might use an online loan is if you need to get access to the money faster than usual. When you apply for an online loan, it only takes a few days for lenders to process your information. In some cases, lenders will be able to process your information and approve or disapprove your loan request the same day.

You’ll want to look for lenders that are offering low rate loans with long-term financing options. To qualify for these loans you will have to have decent credit.

Credit and Interest Rates

If you don’t have great credit, then you’re going to have to get along with slightly higher, to extremely higher interest rates. Another benefit online loans offer is the amount of variety they provide. You’ll have a wide range of different options to explore to find the perfect lawn to fit your business needs.

4. More Micro Loan Options

The SBA and online loans aren’t the only options female entrepreneurs have at their fingertips. You can also go to private organizations that offer microloans for women who own their businesses.

A microloan will be for an amount that is much smaller than the amounts offered by online lenders. You also experience a lot of variety when it comes to how you can repay these loans.

Since the loans are coming from private lenders, each organization will have different loan amounts. Along with the amounts, they’ll also have their own repayment terms.

Know the Loan Rules

Please be aware that certain microlenders will have specific rules when it comes to the type of small business though provide loans for. Just because an organization offers loans to women-owned businesses, it doesn’t mean every business run by a woman will qualify.

Instead, you’ll have to do a little homework to find out what micro lenders offer what type of loans into which businesses there available. For example, a private organization may be willing to give you a microloan to open up your very own daycare.

However, their loan may not apply to somebody looking to open up a food truck business. Before you get too invested with any organization, make sure you clearly understand what they will and won’t cover.

5. Business Lines of Credit

Who can benefit from using business lines of credit? Women business owners have either strong or poor credit, and also want flexibility in how they spend the funds.

Business lines of credit aren’t technically a loan. Instead, your line of credit will help you get access to a certain amount of money for your company.

How Lines of Credit Work

Similar to a business credit card, you’ll have access to a large amount of money, but that doesn’t mean you have to use all of it. Instead, you’ll only have to pay interest on the funds you use.

The moment you pay back what you owe, your credit amount will go back up to its original amount. We love the idea of women using business lines of credit because of the flexibility it offers them as business owners.

Cyclical Revenue Cycles

If you’re dealing with industries that have cyclical revenue cycles, you can benefit from unlimited access to a line of credit. You’ll be happy to know that you can acquire a business line of credit from many different sources, including online lenders.

If your credit isn’t great, your limit amount will be lower. However, if you have astounding credit, you’re limit can be extremely high.

Reach for the Stars

When you know about all of the small business loans for women, there’s no limit to what you can do for your company. We hope that our article will help you find at least one financial opportunity, to start growing the business of your dreams.

While women may have a statistical disadvantage to men in the corporate world, that doesn’t mean it has to stay this way. To learn about more ways to give yourself a competitive advantage as a woman entrepreneur, check out the rest of the site.