Women-owned businesses make up almost half of the businesses in the US but are less likely to apply for business loans. Women entrepreneurs looking for financial assistance face many challenges in getting approved for a loan due to gender biases.
Business funding is designed to support businesses and keep their cash flow maintained. All types of businesses can qualify for a business loan, including women-owned businesses.
Women-owned businesses are incredibly influential to the US economy. They generate trillions in revenue and employ millions of Americans. Not only are women taking the business world by storm, but they’re also a smart investment choice.
Women have proven that they are able to generate more revenue than their male counterparts. For this reason, women-owned businesses are financially beneficial for investors. PaymentCloud supports women-owned businesses and wants to see them succeed. Let's go over financing options that can help your business grow.
While there are multiple ways to secure funding for your small business, the most common financing option is a small business loan. These small business loans for women may come from the SBA, banks or credit unions, online private lenders, or in the form of a micro loan.
The Small Business Administration, or SBA, offers small business loans to entrepreneurs across the United States.7(a) LoansThe most common SBA loan type for women is the 7(a) loan. It offers the borrower up to $5 million. It can be used to substitute working capital in the short or long term, refinance business debt, and purchase equipment or supplies.SBA loans can be difficult to qualify for but they tend to offer great terms.
If government lending programs aren’t right for you, banks and credit unions offer small business loans for women with generally better terms and interest rates.
Traditional banks are risk-averse, so you will likely have to meet stringent requirements to secure large amounts of funding. However, banks offer a variety of lending options compared to a credit union. Credit unions may offer lower fees and individualized customer support but it’s important to note that you must have a membership to use their financing services.
The best place to start is with your business’ bank as they have your financial history there for reference.
Microloans are a lower-risk option for businesses that need a small cash infusion to grow. They offer a small amount of capital with a low interest rate and flexible requirements to help people secure financing. If you are someone who is having trouble meeting the requirements of a traditional loan and don’t need much funding, a microloan is a great fit for you.
If you don’t have stellar credit or a long business history, you may find more success with an online lender. Online lenders tend to have less stringent requirements and are flexible with hard to approve applicants. On the flip side, online lenders are not the cheapest option for financing and this is especially true if you have low credit or a high risk business..
If you’re interested in women’s business loans, here’s a bit of insight into the process:
The exact terms of your small business loan will depend on the lender and type of loan. In general, you can use a small business loan to finance things like:
Marketing or hiring
Our best advice for getting a small business loan as a woman is to simply apply! Give lenders the chance to look at your business.
Tip : Shop around- Don’t simply accept the first offer you get, be sure to find the small business loan that fits your needs. Be confident- Women-owned businesses are the backbone of this economy. Don’t be afraid to ask for what you deserve!
There are grants out there specifically designated for woman-founded businesses. Here are some grants you can apply for:
PaymentCloud is committed to empowering women-owned businesses with business financing.
We’ve helped over 10,000 merchants secure hundreds of millions of dollars in funding so far and we’re ready to help you next. PaymentCloud proudly offers business loans for women and many of the suggested alternative funding options. Our funding options are flexible and can provide you financial relief in as little as 24 hours.
If you're ready to finance your business, apply now and we can help you secure funds instantly!
Now that you know what options are out there and how to secure start up business loans for women, let’s get into some remaining questions you may have.
Yes, there are small business loans for women with bad credit. Some of the alternative funding options like merchant cash advance, working capital loans, business line of credit are all options for you.
Women are quickly bridging the gender gap in business financing. There are many specific small business loans for women and many more generic lending sources that you can apply for. While difficulty will vary depending on your business’ industry, history, and personal or business credit, it is far less difficult to secure funding than it seems.
There are many factors that contribute to why women-owned businesses don’t receive loans as often compared to businesses owned by men.
To qualify for women’s business loans, you’ll need to have a woman-owned company, a solid business plan, and the required proof of concept.
To get started on your women’s business loan application, click the button below and fill out the form. We’ll help you get started with your application today.
While technically women are not a minority in society, their disadvantaged position in a male-dominated industry often classifies them as minorities in this category. When applying for loans, women’s status as a minority will depend on the loan and lender.
The best time to get a business loan as a woman is before you need it. This way you’ll have a chance to evaluate your options, preventing you from making rushed decisions. If you're growing, starting a business from scratch, sensing a cash flow issue ahead, or needing your equipment replaced, then you should start researching your options today.
Loans aren’t for everyone. If a small business loan for women-owned businesses doesn’t feel quite right, there are a lot of alternative options.
A merchant cash advance is an alternative funding option that’s relatively easy to qualify for. This option is ideal for unpredictable situations that require quick capital. For example, a major piece of equipment breaks or there’s an unexpected flood in your store.
A merchant cash advance allows you to borrow against your future credit card sales for a short period of up to 24 months. Your approval amount will be based on your existing history of credit card transactions. You’ll surrender an agreed-upon portion of your credit card-based income until the amount is fully paid back.
A traditional loan will often require proof of a “valuable” reason for the lended funds. An alternative to avoiding this requirement is a working capital loan. A working capital loan is a cash infusion that can be used to finance everyday activities like marketing, wages, and operations. They’re designed for companies experiencing a seasonal slump or a temporary rough patch. The terms will depend on your business history and offered collateral.
Think of a business line of credit like a credit card. You’ll be granted a credit limit that you can use to make purchases. Only the amount used will incur interest and you can pay it off any time. As you pay it off, the credit becomes immediately available for use.
This is a suitable alternative to small business loans for women because it’s there when you need it and costs nothing when you don’t.
Invoice financing is an alternative funding option that lets you borrow against your account receivables, freeing up some of that cash to use now. You’ll receive a portion of the invoice in cash quickly, usually within 48 hours. Then, when your client pays their invoice, the amount goes to pay back the advance and a fee, and you’ll receive the remainder.
If you have a delay between issuing invoices and receiving payment, you may run into temporary cash flow snags.
PaymentCloud is here to help you secure financing today. Whether you need a microloan, merchant cash advance, SBA loan, or anything else, we can help you. We’ve already helped over 10,000 businesses to date secure millions of dollars of financing to grow their businesses, and we’re ready to help you next.
From day one, Miles has been an overwhelming help to me in making sure I am making the best choices for building my business. His patience with me as he helped me step by step in submitting my application was so appreciated! …The team has been amazing across the board, and I truly cannot thank them enough!
I've been working with the folks at PaymentCloud for about two weeks now. They have made it super easy and they guide you through everything! Their customer service and support is awesome! I'm so glad that we connected with Michael S. and all the other folks at PaymentCloud. Highly recommend!
The agent who helped me to onboard was attentive and consistent throughout the process... They made sure I knew how to manage my accounts and had them properly set up and in compliance. They turned what could’ve been an intimidating process riddled with errors into a smooth transition for my business.