How to Get a Small Business Loan For Women

Despite employing more than 9.4 million people and owning two out of every three businesses, women entrepreneurs face a number of challenges when it comes to funding. They’re less likely to receive conventional loans from traditional banks, and they have a harder time getting approved for venture capital, too. Understanding your options and taking advantage of special programs can help you overcome the challenges.

Depending on the type of business you operate and your financing needs, there are many different small business loan for women options available to you. For example, a merchant cash advance allows you to borrow against future credit card receipts. This is a great option for women who are unable to qualify for a traditional bank loan because it doesn’t require years of business history or a minimum credit score. Invoice financing, also known as accounts receivable financing, works similarly to a merchant cash advance by letting you borrow against outstanding invoices. However, it can be more expensive than other types of small business loans for women.

Another popular financing option is a business grant. Unlike loans, grants don’t require repayment, and they can be found from state, local, federal and organizational sources. However, applying for and receiving a grant can be a lengthy process, and they’re not guaranteed. As you evaluate your options, it’s important to consider your business credit profile, financial health and goals before deciding which type of financing is right for you. small business loans women