According to a recent study from LendingTree, women-owned businesses are less likely than men-owned businesses to get the financing they need. However, that doesn’t mean it’s impossible; there are a variety of small business loans for women owned businesses available, and many lenders have flexible funding options. In addition, there are resources like grants and development programs that can help women entrepreneurs build their businesses without putting personal funds on the line.
Women-owned businesses can apply for small business loans through traditional banks, credit unions and online lenders. Loan amounts can range from a few thousand dollars to a million or more, and repayment terms can last a few months to several years. Most types of loans have specific requirements, such as a minimum amount of time in business or revenues, and some require collateral.
Some of the most popular types of financing for small businesses are lines of credit and invoice financing. A line of credit allows you to borrow up to a set amount and pay interest only on the money that you use, while invoice financing lets you borrow against outstanding invoices. Both are easier to qualify for than some other types of financing, though they still have their drawbacks.
While angel investments and venture capital can be lucrative, they come with the big drawback that you’ll need to give up a portion of your business. Alternatively, you could pursue small business grants for women, which can be an excellent alternative to loans as they don’t require repayment.