Business Loans For Women

We are dedicated to finding funding for female entrepreneurs who aim to empower the small business community.

Intro To Small Business Loans For Women

Women-owned businesses have historically faced challenges in obtaining business loans. This is largely due to starting their ventures with fewer advantages compared to their male counterparts, such as lower average credit scores, limited net worth, and less external financial support.

According to the National Association of Women Business Owners, there are approximately 11.6 million women-owned businesses in the United States. These businesses contribute significantly to the economy, generating $1.7 trillion in annual revenues and employing over 9 million people. Despite these substantial contributions, biases within the business financing industry against women business owners could potentially impact economic growth.

Thankfully, organizations like 800Funding are dedicated to leveling the playing field. We collaborate with numerous online lenders who provide a range of small business loans tailored for women. These efforts aim to remove barriers that have historically hindered women entrepreneurs from accessing the financing necessary to achieve their business goals.

In this guide, we’ll cover the following questions and more:

What Are Small Business Loans For Women?

At 800Funding, we acknowledge the statistics: women entrepreneurs often face more challenges securing business loans compared to men. Small business loans for women are not a distinct category of loans exclusively tailored for female entrepreneurs. Instead, our commitment lies in combating discriminatory lending practices to ensure that women entrepreneurs have equitable access to the best small business loans available.

Women-owned businesses frequently encounter hurdles in accessing business credit. Research indicates that women have greater difficulty obtaining the necessary financing for their businesses compared to their male counterparts.

MAX FUNDING AMOUNT

$1K – $10M

FACTOR RATES

Starting at Prime + 2.75%

TERM

3 months – 25 years

SPEED

Days-Weeks

How Do Small Business Loans For Women Work?

One of the primary goals of this initiative is to provide women business owners access to a diverse array of small business financing products. Historically, female entrepreneurs with lower personal credit scores or limited operating capital often struggled to secure the most suitable products for their business goals, regardless of their business performance.

At 800Funding, we take a proactive approach. Our network of online lenders is willing to look beyond traditional limitations to foster a level playing field. Female entrepreneurs frequently launch their businesses with less initial capital and have fewer personal and external funding sources, which can impact their credit scores and growth prospects. Our financing options for women address these foundational challenges rather than solely focusing on numerical metrics. As a result, our network of lenders offers borrowing amounts, interest rates, and terms that may otherwise be inaccessible based solely on credit scores, bank balances, or annual revenues.

Small business loans for women encompass various financing options, including:

Bad Credit Business Loans
Business Line of Credit
Business Term Loans
Equipment Financing
Invoice/Receivables Factoring
Merchant Cash Advance
Revenue-Based Financing
SBA Loans
Working Capital Loans

Borrowers could potentially access loan funding as high as $10 million for terms of up to ten years.

Recent Facts, Figures & Reports on Women-Owned Businesses

Access to capital remains one of the foremost barriers for women to start, expand, and scale their businesses (Source: National Women’s Business Council).

On average, women entrepreneurs launch their businesses with around $75,000 in capital, which is approximately half the average amount for businesses owned by men (Source: National Women’s Business Council).

In the past five years, 74% of women-owned businesses have relied on personal savings or funds from friends and family to support their operations (Source: 2023 Small Business Credit Survey).

As of 2023, there are approximately 14 million women-owned businesses in the United States, comprising about 39% of all businesses—a notable increase of 13.6% since 2012 (Source: The 2023 Impact of Women-Owned Businesses Report).

What Are The Advantages of Small Business Loans For Women?

Small business loans specifically designed for women are particularly advantageous for female-owned businesses that have historically faced difficulties in securing financing due to several factors:

Limited or Poor Credit History

Historically, the credit system has been biased against women. Until 1974, women couldn’t apply for their own credit scores. Despite progress, women often have credit scores that are about 20 points lower than those of men. Many traditional banks have strict minimum credit score requirements, making it tough for female entrepreneurs to get loans. Fortunately, many online lenders have more lenient credit score requirements.

Low Working Capital/No Collateral

Women typically invest less personal capital into their businesses compared to men, who often use personal funds to start their ventures. Some lenders see a higher personal investment as a sign of greater commitment to the business, favoring those who have invested more of their own money. This perspective may ignore factors such as financial discrimination or family responsibilities that might lead women to allocate their funds elsewhere.

Industry/Niche

Women are more likely to start businesses in industries considered “low-growth” or “risky,” such as hospitality and retail. At 800Funding, our lenders do not follow industry stereotypes or reject applications based on perceived industry trends or risks.

If your business shows strong performance, we are prepared to overlook these traditional disadvantages and provide borrowing amounts, rates, and terms tailored to your business’s needs. Your cash flow and business performance are the primary criteria we use to determine the best financing product for you, rather than industry norms or background.

In conclusion, small business loans aimed at women are especially effective for business owners who face traditional barriers but run successful businesses.

What Are The Disadvantages of Small Business Loans For Women?

While we strive to provide the best small business loans to every dedicated business owner, the reality of business financing is different. The most favorable products are typically reserved for borrowers with excellent credit, strong cash flow, and a proven track record spanning several years. Until these criteria are met, interest rates and payments may be higher.

In essence, while we often offer higher borrowing amounts, lower interest rates, and longer terms compared to traditional banks, it’s important to recognize that not everyone will qualify for everything they desire. A business loan may not resolve all challenges, but it can significantly help overcome major obstacles to growth. Successfully repaying your initial business loan can also improve your eligibility for future loans with more favorable terms.

In summary, while the best loan products are reserved for those with optimal financial standing, our goal is to provide substantial support to all business owners. A business loan can be a critical tool in navigating growth challenges and setting the stage for better financing opportunities in the future.

PROS
CONS

Business Loan Product Comparison

LOAN TYPES
MAX AMOUNTS
RATES
SPEED

Who Qualifies For Business Loans for Women?

Approved businesses generally met the following criteria:

ANNUAL REVENUE

$120K+

CREDIT SCORE

525+

TIME IN BUSINESS

6 months+

How To Apply For Women-Owned Business Loans:

Our application process is fast and straightforward, allowing you to complete it within minutes if you have the required documentation. Depending on the financing option you choose, funds can be deposited into your bank account within 24-48 hours. Here’s how to apply:
Step 1: Consider Your Needs

With 800Funding, women entrepreneurs can access a variety of financing products. Since you know your business best, evaluate each option to determine which one aligns with your cash flow. Does your business have seasonal fluctuations? Is your industry prone to periodic revenue dips? Answering these questions before applying will help us tailor the most suitable repayment structure for your needs.

Step 2: Gather Your Documents

Based on the financing option you choose, you may need the following documents:

Step 3: Complete the Application

Start the application process by contacting us or filling out our simple one-page online form. You’ll need to provide the information mentioned in Step 2 and your desired loan amount.

Step 4: Speak to a Representative

After you submit your application, a representative will contact you to discuss the repayment terms, interest rates, and other details of your available options. This ensures full transparency, so there are no surprises or hidden fees during repayment.

Step 5: Receive Approval

The approval process usually takes a few business days, depending on the product you select. Once approved, you can expect the funds to be deposited into your bank account within 1-2 business days.

Your Business Loan Gets Set Up – Now What?

Securing a business loan is not just about getting funds; it’s also an opportunity to build or enhance your credit profile.

Whatever type of business loan you obtain, it’s crucial to make all payments on time and in full. If you have a business line of credit or another form of revolving credit, try to keep your balance below the credit limit.

By consistently meeting your financing obligations on time, you can improve your credit score, which will help you get better rates and terms for future business financing.

What If I’m Declined For Women-Owned Business Loans?

If your application is not approved, it may be because we’ve determined that your business may not currently be able to handle additional debt. In such cases, we might suggest exploring alternative financing options like business credit cards or personal loans, which generally have more flexible qualification criteria than traditional business loans. At 800Funding, our goal is to help you find and evaluate these alternatives to identify the most suitable solutions for your needs.

Business Grants for Women: A Different Approach to Funding

Business loans are not the only means of financing a woman-owned business. Non-profit organizations and other entities offer small business grants specifically for women.

Similar to a term loan, a business grant provides a lump sum of cash. However, unlike loans, grants typically do not require repayment. Using a grant in conjunction with business credit can significantly accelerate the growth of your business.

Additional Resources for Women

Interested in small business Loans for women? Here are five resources to help you get started:

Grants.gov

Growth Grants from the National Association for the Self-Employed

Ambergrants for Women

Grants for Women

SBA Grants

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