With women leading two out of every ten businesses in the US and generating trillions of dollars annually, it’s important to understand what options are available for women-led companies. Despite bringing in trillions of dollars in revenue, however, female-led businesses often face difficulty when it comes to securing financing. In fact, according to a Federal Reserve report, funding requests by women are less likely to be approved in full than those submitted by male-led businesses.
To help level the playing field for female entrepreneurs, some sources of business financing have tailored programs that prioritize funding applications from women-led companies. For example, many large and small banks have dedicated initiatives that provide a streamlined application process, increased maximum loan amounts and better rates for female-led businesses. Additionally, a number of online lenders—such as Lendio and Bluevine—have lower minimum credit score requirements and more flexible repayment terms than traditional banks.
Lastly, government agencies and nonprofit organizations also offer small business grants for women that do not require any repayment or collateral. These resources, which include free and low-cost training, can help female entrepreneurs complete steps like writing a business plan and finding the right lending partner for their business needs.
As an additional resource, the SBA’s national network of Women’s Business Centers can connect female-led companies with local lenders and community financing groups that may be willing to take their unique business circumstances into consideration when reviewing funding applications. Regardless of the type of financing you select, it’s always best to work with a financial advisor that can help you review your options and choose the best option for your company. business loans for women with bad credit