It’s exciting that women-owned businesses are on the rise. In fact, as of this writing, women own 36% of small businesses worldwide. Currently, 1,200 new businesses are started by women daily in the US. Yes, every, single, day. That is a positive statistic you don’t hear talked about very much!
Here is another exciting fact – 6% of women who own businesses are between the ages of 40 and 59. That’s right, being a business owner isn’t just for young people.
Looking at those positive statistics makes it hard to believe that only 36 years ago, women still were required to have a male relative co-sign for a business loan. It wasn’t until 1988 that legislation was introduced to allow women to borrow money without a male co-signer.
Now that we have finally started progressing further away from the dark ages, women-owned businesses have various lending options. Different types of lenders are available to meet a wide range of business owners and business needs.
SBA Loans
Most people starting businesses have heard of the Small Business Association and know they offer financing options. You may not know that the SBA has a few different types of loans available. There are loans available for as little as $500, with other programs offering up to $5 million.
SBA loans are typically financed through local lenders. The SBA can offer loan guarantees along with competitive rates and fees. Some advantages in going through the SBA can include (depending on which loan applied for): lower down payments and support to help you start your business.
Fora Financial
Fora Financial may be the right option for those business owners who do not have a great credit score. Fora has a faster approval window with no application fees, and you potentially could have approval within 24 to 48 hours. The minimum borrowing threshold starts at $5,000 and caps at $1.5 million.
Fora Financial also has the added benefits of no collateral requirements or usage restrictions on the business funds borrowed. In addition, there can be prepayment discounts and the chance to increase borrowed amounts after paying down 60% of the original loan.
Fundbox
If you are just starting your business, Fundbox could be the lender to suit your needs. Fundbox offers a business revolving line of credit up to $150,000 and can be easier to qualify for compared to other lenders.
The application process is fast and user-friendly, and you can have your approval within minutes. If you are approved, the funds could be available as early as the next business day. The repayment terms are flexible and can vary with each drawdown of the line of credit.
Accion Opportunity Fund
Accion Opportunity Fund is a different type of option from traditional lenders. Accion is a global nonprofit lender that uses funds from repaid loans to reinvest in other small businesses. Loans range from $5,000 up to $100,000.
Interest rates are competitive, and loans can be customized to suit your business’s financial needs. What separates Accion Opportunity Fund from other lenders is the programs offered in addition to funding. Accion has coaching, support networks, and educational resources available to help small business owners as they grow.
Research Your Options Carefully
Finding the right loan can help scale your business faster to reach your business goals. There are many other options for business loans, and it’s important to find the right borrowing tool for the specific needs of your business.
Need Help with Your Business Plan?
Most loans require a business plan as part of the application process. Contact [email protected] today, and let’s work through your business plan together!