Updated October 21, 2021
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There are over 13 million women-owned businesses in the United States. This number is increasing rapidly. Women-owned businesses makeup nearly 42% of all businesses and employ more than 9 million people. Every day, there are over 1800 women startups founded in the country.
As per a report by SCORE, their business is the primary source of income for over 62% of women. Women also receive less equity funding as compared to men. Hence, nearly 50% of women business owners rely on credit cards and personal savings to meet their business needs.
Small business loans for women can be an excellent way for ladies to fund and grow their ventures. Here is all you need to know about loans for ladies and how you could benefit from them.
What are Small Business Loans for Women?
Women-owned business loans are for women who need funds to meet their business demands or scale and expand their work. These loans can vary from a few thousand dollars to five million dollars, depending upon your business’s size and needs.
These loans for ladies aim to make it easier for women business owners to access funding for their businesses.
How to Apply for Small Business Loans for Women?
There are two ways to apply for these loans. Women can access these loans through the Small Business Administration (SBA), which works with various lending partners to make access to capital easier for small businesses. It also reduces the risk for the lending partners.
However, applying for SBA loans can involve significant paperwork and is usually time-consuming. If you do not qualify for SBA loans for women, online lenders such as iCapital Funding are a great option.
Online lenders provide loans to cater to all kinds of business requirements. The tenure of these loans can vary from a few months to a few years. The interest rates also vary depending on the lender as well as the amount and tenure.
What Do You Need to Qualify for Small Business Loans for Women?
The requirements depend on your lender. Most lenders will require you to be in business for a specific period before they can lend to you. This period can range from two months to two years.
They may also need a minimum credit score for you to qualify for the loan. It can vary from 500 to upwards of 650.
Some lenders also require you to meet their criteria on minimum annual revenue. It is best to check directly with your lender on their qualification criteria.
What Can You Use Small Business Loans For?
You can use your small business loan for a variety of things, such as spending on marketing, expanding your operations, and purchasing new assets such as equipment, machinery, or real estate.
A small business loan can help your business grow and succeed. Research and compare your lenders thoroughly before applying for a loan. iCapital Funding provides a variety of long-term and short-term loans to meet the needs of your business.