Women are driving business growth and have a significant economic impact as entrepreneurs. However, obtaining financing can be challenging for female small business owners. Biz2Credit’s 2021 annual survey found that female-owned businesses receive funding at a much lower rate than male-owned companies.
Fortunately, there are plenty of opportunities for women who want to start or expand their businesses. Some of the most common types of small business loans for women include a bank or credit union loan, an online lender and government-sponsored grants. Each type of financing has its own set of requirements and guidelines that must be met.
For example, a traditional business loan from a local bank will help you build your business credit rating if you make your payments on time and may be more flexible in terms of lending criteria than an alternative lender. But the application process can be lengthy, and you may need personal guarantees to qualify.
Another option is a government-sponsored grant, which is free money and doesn’t need to be repaid. But be aware that federal, state and organizational grant programs are often highly competitive, and securing funding can take a while.
Finally, if you’re looking for a short-term loan to cover unexpected expenses, an online lender like OnDeck may be able to help. These lenders offer several loan types, including working capital loans and lines of credit. Some offer low APRs, as low as 29.9%, and others have longer term options or more creative arrangements like invoice financing. small business loan for women