Number of the woman owned small businesses are getting more and more every day. In USA 40% of the new entrepreneurs are women. Also government supports the women for business and encourages them to start their own businesses. These numbers are bringing another issue on the table. How can they get their financial support? There are lots of lenders who can give loans for women for their small businesses. There are also a lot of types for loans. In this article, we will try to help women to choose best small business loans.
Types of Loans
First loan is SBA loans for women who wants long term business loan with a good credit score. SBA stands for Small Business Administration that is a government project. It has a lot of loans for small businesses especially for women. SBA does not give the loan directly but they support the owners so in this way owners can get loan from lenders easily. It increases the opportunity to get a loan from a lender with low interest rates because lenders see the women who is in SBA project less risky. SBA’s microloan program supports the loans up to 50.000$. The payment options are 7 years terms or longer and also interest rates are like 4% or 10%.
These types of loan are for the women who have whether poor or good credit score. Minimum term starts from 3 months and it can go up to 5 years. With low rate and long term borrowing with good credit score, you can get loan from Funding Circle and Lending Club. However if you have a low credit score OnDeck and Kabbage can offer you loans but with high interest. All you need to do is to apply online and wait for their offers. Sometimes it can take days but sometimes you can get an approval on the same day.
Business Lines of Credit
Lines of credit are like a pool that you can get a loan whenever you need and how much you need. The good thing about it is to pay only the amount that you use. And most of the women entrepreneurs work in food service and retail services. In these kinds of jobs you may need a cash immediately so having a pool like this can help women a lot to pay their bills and debts or meet their needs.
Microloans for Women Entrepreneurs
Microloans are for the women business owners and for their small businesses. If a woman cannot afford to get a high amount of capital and needs only a little bit capital, these ones are for them. In short terms with little interest rates they can be very useful for them. There are lots of microloan lenders such as; SBA Microloan Program, Accion, Opportunity Fund, Grameen American, Kiva and Tory Burch Foundation Capital Program etc.