Business Loans For Women

In the business flourishing time we live in, women take as much an active part as the other gender when it comes to running and owning businesses.

However, the circumstances of the real world and statistics show that women tend to have harder challenges when setting off on a business-owning journey.

According to a 2020 Forbes report, businesswomen entrepreneurs obtained 36% less capital funding for their businesses than men. This includes loans, shares, and investments.
On the other hand, the performance statistics of these powerful women that have stepped into the business society, significantly increasing their presence share in the last decade, show that women entrepreneurs give a better ROI on their business investments.

According to a Boston Consulting Group report, women generated 10% more revenue and delivered 2x the ROI on each investment dollar over a 5-year period than men.

These statistics show that women are more than ready to dominate the global business industry, and much of the work needs to be done to ease capital investments for women.

This includes easier business loans for women, with easy terms, flexible returns policy, and increased trust for their overall performance.

Types Of Business Loans For Women

To tackle this exact problem, Capital For Business aims to offer various types of loans for working businesswomen that can equip them with the right tools to start and prevail in a business.

Traditional Bank Business Loans For Women

When it comes to acquiring funds or a loan for a business, many may think of hitting up their nearest bank and applying for a business bank term loan.

However, experiences and bank restrictions show that banks are not the most favorable option when searching for a business loan.

Firstly, banks have strict lending agreements. Most loans call for a credit score that is 620 or more with a favorable credit history.

Even then, the loans will be attached with higher interests, strict terms, minimal payment times, and more.

This trend has discouraged many businesswomen to acquire loans from banks and is a significant cause for why there is less participation from businesswomen in the entrepreneurship industry than men.

SBA Business Loans For Women

A better option? SBA Loans. SBA loans are a better and easier option for acquiring small business loans for women.

These loans are administered by Small Business Administration (SBA) and are backed by the government. This guarantee helps the lenders face a lower risk and be more willing to trust small business-owning women to get proper funding and loans.

This also allows for the SBA to consider more and more applicants and offer flexible and reliable terms for business loans for women.

The only condition for SBA loans is that you need to meet the SBA’s Standards for small business size.

Here are the options for SBA business loans for women you can choose from

SBA 7(a) Loan

SBA 7(a) loan is the most demanded and easy-to-acquire loan that offers a large credit limit with a significant term of repayment.

An SBA 7(a) loan can be applied for various reasons, including meeting working capital requirements, property acquisition, renovation, and inventory and asset acquisitions.

• Funding Amount: Up to $5 Million
• Repayment Term: Upto 25 Years
• Interest Rate: Current Prime Rate + 4.75%

SBA 504 Loan

Contrary to SBA 7, the SBA 504 business loan for women is beneficial for long-term investments. This is largely acquired for financing fixed assets, heavy equipment, or the purchase of expensive properties.

The funding of the SBA 504 will come from multiple sources. A certified development company (CDC) will fund usually about 40% of the amount. This will be guaranteed by the SBA as CDC is an SBA-certified NPO.

The residue amount will be sourced from a different lender.

The borrower is required to make a 10% down payment for this loan (which can be 20% in some cases).

• Maximum Funding Amount: $5 Million
• Repayment Term: Variable

SBA Express Loans

SBA Express Loans are acquired for quick access to cash. These loan applications are generally processed within 36 hours of the submission of the application.

If you’re in need of cash or inventory in a short amount of time, SBA express loans are your best option.

SBA will guarantee 50% of the funding for any amount in an SBA Express Loan.

• Maximum Funding Amount: $350,000
• Maximum Interest Rate: Prime + 6.5%

SBA Microloans

SBA Microloans, as the name suggests, exists to fulfill needs for a short amount of cash. If for any purchase, you fall short of money by an insignificant amount, an SBA Microloan can be the best option for you.

These loans can be acquired for various reasons including working capital, equipment, inventory, and more.

For women starting out with businesses, an SBA Microloan can be the optimal option. With a reasonable interest rate and repayment term, small startups can meet equipment and inventory requirements easily.

• Funding Amount: $500 – $50,000
• Repayment Terms: Variable

Alternative Loan Options

Other than the SBA Loans, Capital For Business can help businesswomen acquire alternate options for business loans for women that may be more suitable for them.

These include:

Short Term Business Loans

Short term business loans can help businesswomen acquire working capital on reliable terms. This is mostly acquired for projects that take less than 2 years to complete.

This loan can help your financial needs to tackle funding large purchase orders, undertake renovations or constructions, keep a steady, positive, and healthy cash flow, or finance a much-needed asset for the business.

General Requirements To Qualify

Business Age: 1+ years

Annual Revenue: $70,000+

Credit Score: 540+

Business Line of Credit

Business Line Of Credit increases your purchasing power, acting as a reliable business credit card. If you’re searching for quick access to cash on an ad hoc basis for the purchase of inventory or supplier payments, a business line of credit may be the best option for you.

Whenever you access funds as a loan through this method, you can pay your debt down in regular payments.

The credit limits of a business line of credit are higher than those of credit cards, with repayment terms ranging from 6 months to 3 years.

General Requirements To Qualify

• Business Age: 1 Year
• Annual Revenue: 200,000+
• Credit Score: 560+

Merchant Cash Advance

With a merchant cash advance, businesswomen can borrow an advance load on the basis of their future sales.

If you’re sure your sales revenue will be steady enough to repay the loan, a merchant cash advance can get you the funding right away (approved the same day) and can be repaid through a percentage charged on future sales.

The repayment terms can vary from 3 months to 2 years.

General Requirements To Qualify

Business Age: 3 Months+

Credit Score: 500

Annual Revenue: $90,000+

Accounts Receivable Financing

Businesswomen can fall short of cash inflows and could need to halt future business endeavors if their debtors fail to pay their invoices regularly.

However, with Accounts Receivable Financing, the gap can be filled by gaining a percentage of the debt you’re expected to receive, around 80%-90%.

General Requirements To Qualify

• Business Age: 1 Year+
• Credit Score: 600+
• Annual Revenue: $130,000+

Choosing The Right Loan For You

With so many options for business loans for women, it may take you a while to brainstorm and choose the right type of loan for you.

While the best option, in this case, would be to consult our experts at Capital For Business who can help you pick out the best deal for your specific case, the table below may help you compare with ease.

Why Choose Capital For Business To Acquire Business Loans For Women

As suggested earlier, the traditional method of acquiring loans from a bank can be a big hassle that is not worth the guarantee.

Bank loans mostly call for a high credit score, short repayment terms, and limited credit limits.

Moreover, the application process can also be hectic enough for you to back off.

This introduces alternative sources to acquire loans such as SBA loans or other loans. However, for alternative sources, you need an authority that you can trust and rely on, which can mediate the application process and help you acquire the loans with a good guarantee and quick approvals.

Furthermore, an authority that can offer you expert advice on your business finance model and the best option among the business loans for women available to you.

This is why you need Capital For Business. With expert and experienced professionals working under the name and a vast connective approach that we have, Capital For Business can help businesswomen just like you to acquire the best loan for you.