The Best Small Business Loans for Women Explained
BlueVine
BlueVine is an online lender that focuses on small businesses’ financing solutions. This company has less rigorous requirements and options for female business owners. For this reason, it might be a good option for borrowers with low credit scores.
BlueVine has many options for financing women business owners. The credit score requirement can be as low as 530 It also requires at least three months in business and annual revenue of $120,000 or more. Loan amounts range from $5,000 to $5 million. Here are the major pros and cons about this lender:
Pros
- Cash available in less than 24 hours
- Transparent interest rates and fees
- Outstanding customer reviews for its online services
Cons
- Availability restricted to B2B companies
- Options don’t cover all states
- Services can be expensive
BlueVine offers convenient solutions if you need fast cash. Credit requirements tend to be low, but APR and fees are high, so bear this in mind when making your decision.
Fundbox
Fundbox is an excellent online option for small business loans for women. They also have low credit score requirements, which can be as low as 500. They don’t have strict requirements about how long you have been in business either.
Borrowing limits range from $1,000 to $100,000, with a draw fee of 4.66%, and repayments occur on standard terms of 12 or 24 weeks. In the application, they’ll ask you to provide your business checking account. It’s necessary to estimate your annual revenue. Your credit is calculated based on this information.
Pros
- Quick and straightforward application process
- Perfect for solving cash flow issues
- Accessible borrower requirements
Cons
- Low credit limits may not suffice for your business needs
- Expensive fees, when comparing with similar services
Fundbox is perfect if you need fast and uncomplicated cash loans. Credit limits are small, making it more suitable for quick fixes on cash flow and invoice factoring. Yet, fees can be pretty high.
Kabbage
Kabbage offers accessible loans to borrowers with credit score issues. Eligibility criteria are one year in business and $50,000 of annual revenue, at least. Meeting this criteria will give you access to up to $100,000 in credit.
You can access more significant limits by proving an annual revenue of $500,000 and three years of activity. Your loan request can be granted within 24 hours, if you choose to receive it via PayPal. If you choose to receive it in your bank account, it can take up to three days.
Pros
- Flexible credit score requirements
- Credit is available in a matter of days or even on the same day
- Can connect to several online accounts, such as PayPal, Amazon, and eBay
Cons
- High APRs and confusing rules about fees
- Lacks longer-term options
Kabbage loans are expensive but are an excellent option for borrowers with poor credit scores. They offer excellent connectivity with online accounts, but fees are comparably higher than similar services.
Funding Circle
Funding Circle is a British online lender operating in the US. They offer term loans to be repaid between six months and five years. Requirements are demanding: two years in business and a 660 credit score.
They don’t specify a minimum yearly revenue and offer more significant limits: between $25,000 and $500,000. The interest rate ranges between 3.49% and 27.79%.
Pros
- Higher credit limits: up to $500,000
- No fees other than the interest rate (between 3.49% and 27.79%) and the origination fee (3.49% to 6.99%)
- The application process is faster than with most banks
Cons
- Borrower requirements make it unfit for starting businesses
- Not available in all states
Funding Circle offers a considerably higher borrowing limit than most other lenders. Yet, they have rigid eligibility criteria. The bottom line is that you might also want to consider other options.
OnDeck
OnDeck has been an online lender focused on small businesses since 2007. Borrowing requirements are reasonable: at least 12 months in business and $100,000 of annual revenue.
A credit score of 600 or above allows for a borrowing limit of $250,000. Fees can be pretty hefty, though: APRs for short-term loans can reach 98%, while the APR is around 50%. On the other hand, they offer an extended repayment term of 18 months.
Pros
- Hassle-free application process
- Cash is quickly available
- OnDeck reports helping you strengthen your credit score
Cons
- Expensive borrowing costs
- Requires personal guarantee and blanket lien
Short-term loans usually receive same-day approval if you meet the essential criteria. Yet, fees can be costly, and it’s worth considering different options.
SBA Lenders
SBA stands for Small Business Administration. SBA loans are government-backed business loans for women. Application processes tend to be lengthy and can take days to complete.
After all the paperwork is done, you’ll wait at least 45 days before being accepted or declined. If your application is successful, you get long-term repayment options and low rates. Your business must have been operating for at least two years. Also, your credit records must be impeccable.
Pros
- Extended repayment terms: between 10 and 25 years
- Lower interest rates
- Available for multiple purposes
Cons
- Lengthy and challenging application process
- Requires high standard credit scores
SBA loans are difficult to apply for, and the whole process requires a fair amount of patience. Still, it’s worth the effort many times. Interest rates are much lower, and term payments can be spread over 25 years.
