42% of all businesses in the United States are owned by women. Women-owned businesses have grown by a whopping 114% over the last 20 years, with 40% of them taking out a business loan to fund their venture. 

Understanding Small Business Loans for Women

Entrepreneurs have a lot of different options available when seeking a small business loan for women. They include:

Term Loans

Term loans provide you with a lump sum of cash. You’ll have to pay this back over a set period. This is normally done in the form of a monthly payment. You can use this type of loan to fund your growth plans, as well as to open a new location. Term loans tend to be paid back between 2-5 years.

SBA Loans

SBA loans for women provide several appealing terms.  There are many types available, including 7(a) loans, disaster loans, microloans and even 504 loans. They come with low down payments, small fees and interest rates that are far more favorable than bank loans.

Business Credit Cards

A  business credit card allows you to cover any expenses you may have to pay for. You need a good credit rating, but no collateral. The interest rates are higher than SBA loans.

How to Qualify for a Business Loan as a Female Entrepreneur

Applying for a business loan is relatively easy, but there are a few things you need to understand about the process.

Credit Score

Your credit score is one of the most important criteria when applying for a business loan. Most lenders want a credit score that’s around 680 or higher. Pay all of your bills on time, correct errors on your report and pay debts regularly to increase your score.

Business Plan

You need a solid business plan if you want to apply for a business loan. This demonstrates your viability as a business as well as showing that you’re able to repay financing. Include projections for costs, profit margins, revenue and cash flow. Be realistic, and outline the goals you believe to be viable for your business. It’s also helpful to highlight your experience.

Financial Records

Some business loan lenders will want to see financial statements, including your income, any balance sheets you have or even cash flow statements. Having statements shows that your business is financially sound and profitable. 

Collateral

For a lot of business loans, you may have to put down collateral. This involves you pledging a personal asset, such as real estate or business equipment. If you happen to default then your lender will simply seize the collateral in an attempt to cover losses. Having enough assets to leverage, will make it easier for you to qualify for the loan.

We'll Help You Secure a Business Loan

If you need some assistance securing a business loan, then we highly recommend calling us at 877.433.4241 or 610.337.2464. Our independent loan brokers can give you the best rates, with fast and easy approval!