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Business Loans for Women and Top Hacks to Get Them

Reviewed by Ty Crandall

August 19, 2021
business loans for women Credit Suite

When it comes to getting business loans for women, you need every possible advantage. The more you know, and the better prepared you are, the better your chances of approval.

5 Tips to Get Business Loans for Women and Where to Find Them

Check out these tips that may give you a leg up when it comes to getting business loans for women.

 

1. Take Advantage of All Available Resources

There are numerous resources available to help women business owners. From federal agencies like The Small Business Administration to state and local

options, take advantage of them. 

 

 

 

 

2.  Present a Flawless Business Plan

Do not just fill out the questions on the application.  Present a formal, complete business plan that answers them all.  Make it professional and appealing.

 

 

 

 

 

 

3. Set Your Business Up to Be Fundable

Fundability, in short, is the ability of your business to get funding.  It includes a number of things. In fact, over 100 factors affect the fundability of your business. The first step to strong fundability however, is setting your business up to have a fundable foundation. 

 

 

 

 

4. Establish Strong Personal and Business Credit Scores

The largest piece of fundability is credit scores. It’s not just your personal credit however, but it’s your business credit score as well.  Personal credit and business credit are quite different. The biggest difference is you have to work intentionally to establish and build business credit.

 

 

 

 

5. Work with a Business Credit Expert

Business credit and fundability are two things that can be difficult to handle on your own.  The sheer number of factors that affect each one can be overwhelming. Furthermore, many lenders and vendors are not forthcoming with a lot of the information that you need.  For example, not all of them will report your payments to your business credit report, and they may not tell you whether they do or not.

A business credit expert can help you evaluate the current state of your fundability and business credit profile. Then, they can guide in improving both. They have relationships with vendors and lenders to help you get the information you need to make the best decisions for the long term strength of both business credit and overall business fundability. They can also direct you toward and help you get the financing you qualify for right now. A free consultation with a business credit expert is the best way to start.

 

Where to Find Business Loans for Women

You can apply for business loans from any lending institution of course.  Loans specifically for women business owners are not that common.  However, there are a few, and there are some lenders that tend to work better when it comes to business loans for women even if they do not lend to women exclusively.

If you have good credit and collateral, then an SBA loan may work well. If that is not the case however, here are some other options.

Business Loans for Women: Alternative Lenders

These are private lending companies. They often have less stringent requirements when it comes to credit score, but they do tend to have higher interest rates.

Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loan funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

One benefit LendingClub offers with their small business loans that many others do not is access to a client advisor. This is someone to help you figure out how to best use your business loan funds, as well as how to budget loan payments.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000.  There is a minimum time in business requirement of 12 months to qualify.  In addition, you must have at least $50,000 in annual sales.  There can be no tax liens or bankruptcies, and you must have at least 20% ownership.  They will work with a credit score that is fair or higher.  A fair credit score ranges from 620 to 659.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. Potential borrowers submit one application and then see offers from lenders in the network.  The minimum loan amount is $500 while the maximum is $5,000,000.  The business must be U.S. or Canada based and must have a business bank account.  There is a minimum personal credit score requirement of 560.

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

Learn business loan secrets and get money for your business.

Blue Vine

BlueVine offers two options for small business financing.  They include lines of credit and invoice factoring.  They also offer the ability to talk with a financial advisor. Their application process takes place exclusively online.  The minimum loan amount is $5,000 and their maximum is $100,000.  Furthermore, to be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders.  It is sort of a cross between crowdfunding and lending.  They offer loans with a 0% interest rate.  That means, even though you have to pay it back, it is actually free money. In addition, they do not run a credit check. The only requirement is that you have to get at least 5 family members or friends to donate money for your business.  Also, you have to give at least a $25 loan to another business on the platform yourself.

Grameen

Grameen is one of the few lenders that offers microloans specifically for women.  The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

Business Loans for Women: Credit Suite

Here is the top secret when it comes to business loans for women, or men, or minorities, or anyone else.  Your options are not limited to traditional loans and alternative lenders.  You aren’t necessarily doomed to a higher interest rate just because you have a lower credit score, no collateral, or both.  There are other ways to finance a business.

Credit Line Hybrid

The Credit Line Hybrid is unsecured business financing. There is no down payment, and you do not have to provide income documentation. It is completely no-doc financing.

You do need to have personal credit of 700 or above.  Also, there cannot be any late payments in the past 24 months, there can be no open collections or bankruptcies, and there should be less than 6 inquiries in the past 6 months on your consumer credit report.  In addition, you need at least 2 open credit cards with a $2,000 limit or higher and 2 years of good payment history on those cards.

If you do not meet these requirements, you have the option to take on a credit partner that does meet them. You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

Business Line of Credit

A traditional business line of credit is like a cross between a traditional loan and a business credit card. You go through a traditional bank and apply just like you would a loan.  It may be collateral based or not, depending on your lender’s requirements.  You may also use a guarantor to help reduce rates and get better terms if needed.

At Credit Suite, our funding partners offer an unsecured line of credit that has a minimum FICO score requirements of 600.  You also must show business tax returns with net profits over $20,000 if you have been in business between 6 months and a year.  If you have been in business for over a year, you need to show $10,000 in monthly revenue. These requirements are much easier to meet than those typically set forth by lenders.

Terms are 6 to 18 months and interest rates range from 12% to 25%.  You can get up to $250,000.

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

Learn business loan secrets and get money for your business.

Business Revenue Lending

A business that has consistent revenue of $120,000 per year or more may qualify for this type of funding. Lenders verify revenue using bank statements.  There can be no recent bankruptcies, but the minimum credit score to qualify is 500.

The business must also be in operation for a year or more, and it must do over 5 small transactions each month to get business revenue financing.

Merchant Cash Advance

A business that accepts credit card payments and has at least a 500 FICO can get up to $750,000 in a merchant cash advance. Credit rates are usually lower compared to traditional financing as well.

There must be $100,000 or more per year in credit card sales, and typical approval equals one month’s credit card financing volume.

Accounts Receivable Financing

Outstanding account receivables can also be a source of funding for your business. Get as much as 80% of receivables advanced in less than 24 hours. You get the rest of the accounts receivable amount once you collect full payment for the invoice. Closing takes 2 weeks or less.

Receivables should be with the government or another business. Getting financing with receivables from individuals is not as easy.

business loans for women Credit Suite

Retirement Account Financing (Rollover for Business Startup, or ROBS)

This Credit Suite program offers a flexible and powerful way for a new or existing business or franchise  to leverage assets that are in a 401(k) plan or IRA.

You do not have to submit financials or have good credit to get approval. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.

If the plan has a value of more than $35,000,  you can get approval. This is true even if you have really bad personal credit. You can get however much of your 401(k) is “rollable.” Sometimes, you can secure a low-interest credit line or loan for 100% of your current 401(k) value.

The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.

The cost is 1% and the term is 5 years. There is a $4995  lender fee.  This includes 5 years worth of management and consulting.

Equipment Financing

You can secure this type of financing by using existing equipment or new equipment you want to purchase as collateral.  Funding is available up to $10 million. Terms range from 5 to 60 months, and you need a minimum 550 FICO.

The equipment must be new, and most types of equipment are acceptable, including software.

You’ll need to provide details on the equipment to be financed and, depending on the loan amount and certain risk factors, you may need to show 2 years corporate and personal tax returns.

Learn business loan secrets and get money for your business. via Credit Suite BizLoanSecNotRecCJ2

Learn business loan secrets and get money for your business.

Commercial Real Estate Financing

As you might expect, this is a loan that is secured by commercial real estate.  You can get up to $10 million with terms from 6 to 60 months and interest rates ranging from 6% to 22%.  The minimum credit requirement is 500, so this can be a good option if you don’t have great credit as well.

SBA Enterprise Loans

You need to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620.  There also can be no bankruptcies in the past 4 years.  Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25 years.

The Secret of a Business Credit Profile

Most traditional funding requires at least a good personal credit score. Fundability requires a good personal credit score and a good business credit score. However, if you build a strong business credit profile with a high score, you can fund your business without good personal credit, collateral, or cash flow.  That can buy you time to work on personal credit and fundability, so that you can get even better rates and terms.

Business Loans for Women Are Not Unattainable

Whether you are looking for a traditional loan or some other type of business financing, these tips can help. The most vital part of getting funding for your business is having strong fundability.  The best way to start building fundability is to start working with a business credit expert today.

About the author 

Faith Stewart

Faith has a BBA with a major in Accounting, and a combined 20 years of experience in the fields of finance and account.

Before switching to writing, she spent 10 years working in various areas of small business and personal finance and accounting, including working as a public auditor at BKD, LLP, Financial Director at Central Arkansas Development Council, and Commercial Credit Analyst at Farmer's Bank and Trust.

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