Small Business Loans for Women Entrepreneurs in 2019

small business loans for women

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It’s 2019, women empowerment and #BalanceforBetter is at its best and improving day by day.

And since we have achieved a level of Balance for Better between both male and female, this further helps in achieving an important aspect in a woman’s life where she plans on being independent and plans for a business of her own.

With changing time more and more women are opening up their businesses and the need for small business loans for women has increased drastically.

Hence the various financial lending institutions are at play offering the best available options for women entrepreneurs, to help them in expanding their business.

And at this level, not only new but old businesses are also being funded. So, let’s understand the various sources available for Financial help along with the list of banks offering loans at the best rate.

 

OFFER CRITERIA APR LOAN AMOUNT TO APPLY
Criteria:

1+ year in business

APR:

24% to 99%

Loan Amount:

$2000 to $250,000

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Criteria:

24+ months in business

APR:

10% to 25%

Loan Amount:

$10,000 to $350,000

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Criteria:

1+ year in business

APR:

9.8% to 35.7%

Loan Amount:

$5,000 to $300,000

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Criteria:

6+ Months in Business

APR:

15.00% - 30.00%

Loan Amount:

$5,000 to $250,000

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Criteria:

1+ Year in Business

APR:

9.1% to 99.8%

Loan Amount:

$5,000 to $500,000

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Criteria:

1+ Year in Business

APR:

30% to 70%

Loan Amount:

$5,000 to $200,000

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Criteria:

2+ Year in Business

APR:

8.53% to 9.83%

Loan Amount:

$30,000 to $350,000

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1. Kabbage

Loan Amount: $2,000 to $250,000.

APR: 24% to 99%

Loan Term: 6, 12 or 18 months

Funding Time: A few minutes to several days

Qualification Criteria:

  • No minimum personal credit score
  • 1+ year in business
  • $50,000+ annual revenue

Why to Choose Kabbage: 

Kabbage Provides Loans to Business Owners with Bad Credit:

There are various business owners who don’t get their loan approved because they have a bad credit history, and Kabbage helps these business owners.

Kabbage provides you with financial help after considering the data from the financial accounts that you link, your average monthly revenue, and the number of years you’ve been operating your business.

Kabbage provides you Access to Fast Cash:

Kabbage has proved to be the best option for business owners who need cash immediately and do not mind paying a little higher rate.

The application process with Kabbage doesn’t require any paperwork and you can simply connect a business checking account, bookkeeping software or any payment platform like PayPal.

Kabbage is most preferred for a Short Repayment Period:

People who expect to generate a good amount of Revenue in short term choose Kabbage the most, as they offer loans of up to $250,000 with a repayment term of 6 or 12 months.

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2. Credibility Capital

Loan Amount: $10,000 to $350,000

APR: 10% to 25%

Loan Term: 1, 2 or 3 years

Funding Time: 7 days on average

Qualification Criteria:

  • 650+ personal credit score
  • 24+ months in business
  • $250,000+ annual revenue

Why to Choose Credibility Capital:

Credibility Capital offers lower APR loans, even though the process might take a few more days:

Credibility Capital offers loans with lower rates than most other non-bank lenders, but Credibility does require a bit more documentation, and the process can take a few extra days.

With a quality FICO and a bit of patience, you might be able to score one of Credibility’s transparent, fully amortizing, monthly pay loans.

With Credibility Capital there’s No Prepayment Fee:

If you take a term loan with Credibility Capital and find yourself able to pay down the loan before the end of the term, you can pay it off without any additional interest, fees, or expenses.

Refinance and take on a bank-quality loan:

Because of the lower rates, Credibility makes sense for small businesses looking to refinance higher-rate loan products.

In addition, small businesses in the process of a bank loan application can take on a Credibility loan – if the bank loan comes through, the Credibility loan can be paid back without any prepayment fees.

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3. Lending Club

Loan Amount: $5,000 to $300,000

APR: 9.8% to 35.7%

Loan Term: 1 to 5 years

Funding Time: Can be 2 days, but typically takes a week or two

Qualification Criteria:

  • 600+ personal credit score
  • 1+ years in business
  • $50,000+ annual revenue

Why to Choose Lending Club:

Lesser Collateral for Loans:

Lending Club is less stringent than banks and requires a minimum credit score of 600 along with Collateral, but only for loans over $100,000.

You get Competitive rates with Lending Club:

Lending Club Business Loan APR ranges from 9.8% to 35.7% which is a bit higher when compared with Traditional Banks, but this rate is lower than other Online Lenders.

Lending Club provides quick access to Cash:

It takes only 5 to 10 minutes to get Prequalified with Lending Clubs online application and after this, you get a quote which has no effect on your credit score.

A business owner applying for a loan with Lending Club can be funded as soon as 2 days, and the time also depends on the size of the loan and how quickly the documents are submitted.

No Prepayment Penalty with Lending Club:

There is no Prepayment penalty for paying off your term loan early with Lending Club.

This condition helps you in saving money on the interest amount and this facility is generally not available in the case of term loans with other online lenders.

To Note: Choosing Lending Club as a Financing body is the best option for business owners who are looking to Re-finance their existing debt.

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4. Credibly

Loan Amount: $5,000 to $400,000

APR: Starts at 9.99%

Loan Term: 6 to 24 Months

Funding Time: As fast as 48 hours

Qualification Criteria:

  • 500+ FICO score
  • 6+ months in business
  • $15,000+ average monthly bank deposits

 Why to Choose Credibly:

Quick access to Funds with Credibly:

Working capital loans with Credibly provide immediate assistance for companies that need extra working capital.

The funds do not need to be used specifically as working capital and this is a great solution for any business with urgent capital needs.

Make payments Daily or Weekly:

You can start paying off your loan amount on a daily or weekly basis, hence making it easier to pay the full amount in small quick payments.

Weekly payment option for working capital loans has different minimum qualifying criteria than the daily payment option. So, you need to check this factor as it depends on your loan.

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5. OnDeck

Loan Amount: $5,000 to $500,000

APR: 9.1% to 99.8% for term loans; 11% to 63.2% for lines of credit.

Loan Term: Repaid daily or weekly for 3 to 36 months.

Funding Time: As fast as 24 hours but typically a few days.

Qualification Criteria:

  • 500+ personal credit score
  • 1+ year in business
  • $100,000+ annual revenue

Why to ChooseOnDeck:

Easy and Fast Loan with OnDeck:

With OnDeck your loan application can be completed online or over the phone in 10 minutes, and you only require the basic information to apply.

The basic information includes your business tax ID, 3 months of bank statements, Social Security number, and driver’s license and you can receive the funds within 24 hours.

OnDeck provides cheaper loans to Loyal Customers:

The basic one-time origination fees with OnDeck is between 2.5% to 4% of the total loan amount on your first loan.

This fee drops down to 1.25% to 3% on your second loan and 0% to 3% on your third loan and on other future loans.

You can Build Business Credit with OnDeck:

The best part about making timely payments with OnDeck is that it reports your payment activity to the Business Credit Bureau Equifax, Experian and PayNet.

This helps in building a good business credit score, which will help you in getting larger and less expensive small business loans in the future.

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6. QuarterSpot

Loan Amount: $5,000 to $250,000

APR: 30% to 70%

Loan Term: 6, 9, 12, 15, or 18 months

Funding Time: As fast as 24 hours

Qualification Criteria:

  • 550+ personal credit score
  • 1+ year in business
  • $200,000+ annual revenue

Why to Choose QuarterSpot:

Beneficial for Loan Borrowers with Poor Credit:

The best thing about getting financial help through QuarterSpot is that instead of focusing on the credit score, they use a secure login to access 3 to 24 months of bank account transaction data.

This data is reviewed as a real-time profit-and-loss statement, and this method provides the lender with a better understanding of the strength of the borrower’s business.

Quarter Spot has No Prepayment Penalty:

The borrower’s daily and weekly payments go both in Interest and Principal amount, this means that QuarterSpot Loans are fully amortizing.

This feature helps the borrower save on interest by paying back the loan early and there are no prepayment charges by QuarterSpot.

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7. Smart Biz

Loan Amount: $30,000 to $350,000

APR: 9.7% to 11.04%

Loan Term: 10 years

Funding Time: As quickly as 7 days but typically several weeks.

Qualification Criteria:

  • 600+ personal credit score for loans $30,000-$150,000
  • 650+ credit score for loans more than $150,000
  • 2+ years in business
  • $50,000+ annual revenue

Why to Choose Smart Biz:

SmartBiz offers Inexpensive Financing:

With a range of APR 9.7% to 11.14% for regular term loans and from 7.38% to 7.43% for commercial real estate loans, SmartBiz makes it tough for the competition to beat and operate on such low rates of SBA financing.

SmartBiz Marketplace matches Borrowers to Lenders:

SmartBiz offers a free Online tool called SmartBiz Advisor, which shows your probability of loan approval and also advices you on How you can increase your approval odds.

This tool also provides users with personalized insight to evaluate various factors in borrower’s business such as its debt coverage, debt usage, and business revenue trends.

The platform provided by SmartBiz is a marketplace in which your application is evaluated against credit requirements of SBA preferred lenders, it currently has 8 bank partners.

This feature helps in patching you up with the bank which is best suited for your needs and hence improves the chances of getting your application approved.

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After getting the best rates and options with various features for Small Business Loans, there are some uncovered aspects which every Women Entrepreneur needs to understand:

Why are Business Loans Important?

When should you get a Small business loan for women?

What type of Small business loan for women is right for you?

How can you use a Small business loan for women?

What are other available sources of Finance apart from a Small business loan for women?

So, let’s understand the answer to these above-mentioned questions one by one.

And if you have any other questions apart from these then feel free to mention the same in the comment section at the bottom.

Starting up your own business requires you to be still able to meet your family and personal financial needs, along with the newly incurred Business needs.

Getting a small business loan proves to be the first and very important aspect in this process if your business is not already backed up with a good capital amount.

So, before moving ahead with a small business loan, you first need to calculate your monthly expenses for the family, and for personal use along with the business requirements for a financial year.

And if in case you need to cut down your expenses then this read is here to help you.

If you’re a Women Entrepreneur who’s starting her own business then you will definitely need financing from various outside sources.

You need Capital for starting up your business and meeting your operational expenses.

To list down a few Operational expenses, you will require finances for:

  • Maintaining your inventory
  • Payroll
  • Equipment’s
  • Marketing
  • Covering up Daily expenses.

Well, these are only a few items which I’ve enlisted and these will keep on growing according to the size of the business you plan to operate with and according to the particular field you are operating in.

So, if you too are an independent Women Entrepreneur and you’re looking out for Financial help then you carefully need to consider and focus on:

  • How will you be using the borrowed funds?
  • Where to invest in Bulk?
  • How to maintain a proper Cash Flow to be able to meet all the financial needs?
  • If there is a need for Reserve cash as emergency Funds?
  • Will the Profits be reinvested or distributed?
  • What amount of working capital needs to come in play and be accounted for a financial year?
  • Which are the places that require immediate cash inflow?
  • Which payments can be kept for later pay up?

Only after addressing these matters you carefully need to calculate the required working capital for your business.

So, before signing on the dotted line, you need to have a clear vision about your sources of revenue which will end up in helping you repay your small business loan.

Each of the mentioned funding options has its own pros and cons.

So before picking up an option please compare the same with your financial condition and meet them up with your requirements accordingly.

Microloans: These are small loan amounts which are generally offered to those who don’t have stellar credit or the collateral (Which is typically required for a traditional loan).

Microloans are good for Women-owned businesses which require a smaller capital, to jumpstart their business.

Sometimes even a few thousand Dollars can help in building up the inventory and getting the business started.

The Small Business Administration (SBA) has created a Microloan Program to be able to fulfill the needs of a growing small business entrepreneur.

These Microloans are provided to small businesses through non-profit organizations across the U.S, which are available for up to $50,000.

Working Capital Loan: To explain it simply, working capital is the cash required to meet the day to day expenses of running a business.

Net Working Capital is calculated by deducting the Current Liabilities from the Current Assets.

Hence a working capital loan helps you in continuing with your daily operations smoothly, without tapping into your cash flow.

Short-term Business Loans: These loans are designed to meet an immediate financial requirement.

This is like bridging the gaps in cash flow, which simply means dealing with an unexpected need for extra funding.

So, rather than taking out funds from other parts of your business, you can cover your costs with a short-term loan.

Business Line of Credit: This is an arrangement between a Financial Institution and a Borrower that establishes a maximum loan amount that the lender will allow the borrower to take.

The borrower can withdraw any amount from the line of credit at any time, you just cannot cross the maximum limit which is already set in the agreement.

You make regular payments to the lender which include the interest amount, till the time the entire Principal amount is paid off.

Revolving Line of Credit: This is a flexible method of borrowing money. In this method, instead of borrowing the fixed amount at once you borrow according to the current working capital requirement from a pre-approved limit.

Getting a revolving credit helps your business pursue opportunities quickly, even when you don’t have funds available to invest.

Revolving credit is an effective cash flow management tool for your business and all you need to do is keep on making the minimum payment and limit your debt.

Borrow only that amount which you can payback easily.

A small business loan for women can be used to cover up working capital requirements along with meeting up the recurring and unexpected Financial business needs.

Women need a small business loan to:

Hire and train new employees: When you plan on expanding your business, you definitely need trained helping hands to take your business a notch higher.

Expand your workspace: With more people joining your business, the need for proper workstations will make you expand your work floor.

If your business has grown exponentially then you might plan on opening up a new branch in a different city or country. This aspect also requires you to meet up the financial needs to increase your assets.

Market your Business: For you to make people know about your business and become clients, you need to spread the word out, be it in the same city or a different place altogether (This depends on the type of business you’re dealing with).

With the world getting smaller, you can plan out various online campaigns or you can also focus on various traditional marketing strategies.

And for any of the choices that you make the capital investment will be required for sure.

Purchase Inventory: Depending on the kind of business you’re in, if you expand and market your products, you also need to be able to meet and fulfill the demands of people.

For this to happen your production is sure to increase which will require you to buy inventory. (This can differ for various businesses).

SBA Women’s Business Centres: They are a network of nearly 100 educational centers around the United States which helps women in starting and growing their own business.

These centers typically offer seminars and workshops on a variety of topics, which include topics like how to start a business and raise capital.

Womanowned: This is a network which involves more than 3.5 Million women-owned businesses worldwide.
They offer business information online and also offer networking assistance.

Womanowned maintains a database where you can get information about loans, scholarships and other funding options.

Grants: Businesses owned by Women can also get financial help through grants which are provided by government agencies and non-profit organizations.

Friends and Family: If all the above-mentioned sources don’t play out for you then as lender of last resort, you can ask out for help from your friends and family.

Often our close ones don’t ask for interest on the borrowed amount and lend us money on goodwill.

But make sure that you don’t opt for borrowing a bulk amount from one single person, instead take small-small loans from various people.

Maintain a list of payments and keep a check on the ones that you need to pay off on an immediate basis, keeping the less urgent ones at the last.

You can seek help from How to get out of Debt in a Year! A simple read which has helped many.

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