In recent times, many startups are being owned by women. With the increase in women in business, women entrepreneurs are increasingly seeking funds to grow their businesses. Unfortunately, there are no loans dedicated to women businesses. However, there are lenders who readily offer loans to women entrepreneurs. Check out lenders who offer fast loans to women businesses.
The availability of the loan depends on many factors, including the age of the business. Some lenders do not grant loans to businesses that have been in operation for less than 2 years. However, other lenders grant loans to businesses that have been in business for less than one year.
If you have been operating for less than one year, you can access loans from the lenders.
Lenders want to access your financial standing by checking your annual returns. This makes it difficult for businesses that have been in operation for less than a year to get loans. However, there are other financing options such as invoice financing and invoice factoring. There are several invoice financing and factoring companies that will give you cash for outstanding businesses from customers. If you are struggling with cash flow because your customers are not paying their invoice on time, you can opt for this. With this option, the lender does not look at your annual returns, and they will use the invoice as collateral for the advance.
If your business is a year older
You will have several loan options if your business is at least one year old. It gets even better if you have a good credit score.
Street Shares offers fast loans for businesses with an annual revenue of $75,000 and a minimum credit score of 600. Such businesses can access loans with APR starting from 9%. They can fund your loan within 5 days and the loan term ranges from 3 to 36 months. Street Shares offers a loan amount between $2000 to $250,000.
Another lender to consider is Credibility Capital. This lender offers a higher loan amount at an APR that ranges from 10% to 25%. The loan term ranges from 1 to 3 years. They can fund your loan request within 7 days after application.
Businesses that want to refinance their debts can also apply to Lending Club. This lender offers lower loan rates for businesses with good personal credit and strong business financials. The APR for their loans start at 9.8% and the loan amount ranges from $5,000 to $300,000. You will be expected to pay back within 1 to 5 years. Lending Club has a fast funding duration; they can even fund your loan in 2 days.
If your business has been in operation for more than two years.
Many lenders prefer to grant loans to businesses that have been operating for a long time. If your business has been running for over 2 years, you have a better chance of acquiring a business loan as opposed to someone who has been operating for a year. It is recommended that businesses that have been in operation for at least 2 years consider SBA loan options. SBA loans are backed by the government and the interest rate is not high. You can access this loan faster compared to traditional loans. The most popular SBA loan option is the SBA 7(a) loan. There are several lenders who offer SBA loans. One lender that is recommended is Smartbiz. Smartbiz offers you flexibility with loan payments. Their loan term is 10 years and the APR ranges from 8.53% to 9.83%. You can access between $30,000 and $350,000 when you apply to them.
Businesses with Bad Credit
There are also loan options for businesses that are struggling with their credit scores. There are lenders who are willing to offer loans to such businesses but the interest rate is high. Lenders include the following;
Kabbage grants loan amounts that range from $2,000 to $250,000. The APR, however, ranges from 24% to 99 %, and you will need to pay back within a year. They can fund your loan on the same day you apply even though funding can also run into several days.
Quarterspot is another lender that grants loans to businesses with bad credit. Borrowers can get between $5,000 and $200,000. The APR ranges from 30% to 70%, and the repayment terms are 9 months, 12 months, and 18 months. This lender can also grant you a loan in less than 24 hours.
If you are looking for a lender that can grant you a business loan to the tune of $500,000, OnDeck should be part of your list. Their APR ranges from 16.7% to 99.4%. You will be expected to make daily or weekly loan payments and the loan term ranges from 3 to 36 months. This lender is also known for funding loans quickly.
Other Financial Resources for Women Entrepreneurs
Although most loan services are not dedicated to women businesses, there are certain resources and programs that are design to aid in the growth of women businesses. They include the following;
- Women Business Centers
There are over 100 centers across the United States. They are there to provide counseling and training services for women in businesses.
- SBA’s Women-Owned Business Portal
This portal makes resources available to women who have questions about starting or maintaining a business.
- National Women Business Owners Corporation
This organization allows you to access government contracts and they also help you to meet more potential customers.
- U.S Women’s Chamber of Commerce
This organization helps you to build your network and voice out your opinion. This group is home to several women entrepreneurship advocates. If you are passionate about being heard, this organization is right for you.
Aside from the useful resources, there are grants available to women in business. These grants include 37 Angels, Eileen Fisher Women-Owned Business grant, and WomensNet Amber Grants. Women can take advantage of all these resources to improve their business. It is a great idea to research on such services in your state and explore the numerous opportunities.