Small Business Startup Loans For Women

The percentage of women-owned businesses has grown steadily, but financing can be harder for female entrepreneurs than it is for men. According to research by online credit resource Biz2Credit, the average loan size for women-owned businesses is 31% lower than that of men-owned businesses. Fortunately, there are resources available to help women business owners secure startup loans and grow their operations.

Traditionally, banks and other lending institutions are the main source of small business startup loans for women. To qualify, you typically need to have good to excellent personal and business credit. You may also need to submit business plans and other documents, including your bank statements, tax returns and business licenses.

You can also try online lenders, which offer a variety of financing options for all types of businesses. Those options range from short-term three- to 18-month loans for working capital to longer two- to five-year terms for established companies. You can even find financing for startups, though these loans often require that you personally guarantee the funding with your own personal credit.

If you have a low business credit score or don’t want to risk your own personal assets, you can also consider applying for a small business grant for women. These types of grants usually don’t require any repayment and are offered by state, local and organizational government agencies. You can also apply for set asides, which are federal contracts reserved specifically for minority and women-owned businesses. women business loans