Business Loans For Women

We are dedicated to finding funding for female entrepreneurs who aim to empower the small business community.

Intro To Small Business Loans For Women

Women-owned businesses have historically encountered challenges in obtaining business loans. This is largely due to starting their ventures with fewer advantages compared to their male counterparts, such as lower average credit scores, limited net worth, and less external financial support.

According to the National Association of Women Business Owners, there are approximately 11.6 million women-owned businesses in the United States. These businesses contribute significantly to the economy, generating $1.7 trillion in annual revenues and employing over 9 million people. Despite these substantial contributions, biases within the business financing industry against women business owners could potentially impact economic growth.

Thankfully, organizations like 60Day Capital are dedicated to leveling the playing field. We collaborate with numerous online lenders who provide a range of small business loans tailored for women. These efforts aim to remove barriers that have historically hindered women entrepreneurs from accessing the financing necessary to achieve their business goals.

In this guide, we’ll cover the following questions and more:

What Are Small Business Loans For Women?

At 60Day Capital, we acknowledge the statistics: women entrepreneurs often encounter more challenges securing business loans compared to men. Small business loans for women are not a distinct category of loan exclusively tailored for female entrepreneurs. Instead, our commitment lies in combating discriminatory lending practices to ensure that women entrepreneurs have equitable access to the finest small business loans available.

Women-owned businesses frequently face hurdles in accessing business credit. Research indicates that women encounter greater difficulty obtaining the necessary financing for their businesses compared to their male counterparts.

MAX FUNDING AMOUNT

$1K – $10M

FACTOR RATES

Starting at Prime + 2.75%

TERM

3 months – 25 years

SPEED

Days-Weeks

How Do Small Business Loans For Women Work?

One of the primary goals of this initiative is to provide women business owners access to a diverse array of small business financing products. Historically, female entrepreneurs with lower personal credit scores or limited operating capital often struggled to secure the most suitable products for their business goals, regardless of their business performance.

At 60Day Capital, we take a proactive approach. Our network of online lenders is willing to look beyond traditional limitations to foster a level playing field. Female entrepreneurs frequently launch their businesses with less initial capital and have fewer personal and external funding sources, which can impact their credit scores and growth prospects. Our financing options for women address these foundational challenges rather than solely focusing on numerical metrics. As a result, our network of lenders offers borrowing amounts, interest rates, and terms that may otherwise be inaccessible based solely on credit scores, bank balances, or annual revenues.

Small business loans for women encompass various financing options, including:

Bad Credit Business Loans
Business Line of Credit
Business Term Loans
Equipment Financing
Invoice/Receivables Factoring
Merchant Cash Advance
Revenue-Based Financing
SBA Loans
Working Capital Loans

Borrowers could potentially access loan funding as high as $10 million for terms of up to ten years.

Recent Facts, Figures & Reports on Women-Owned Businesses

Access to capital remains one of the foremost barriers for women to start, expand, and scale their businesses. (Source: National Women’s Business Council)

On average, women entrepreneurs launch their businesses with around $75,000 in capital, which is approximately half the average amount for businesses owned by men. (Source: National Women’s Business Council)

In the past five years, 74% of women-owned businesses have relied on personal savings or funds from friends and family to support their operations. (Source: 2023 Small Business Credit Survey)

As of 2023, there are approximately 14 million women-owned businesses in the United States, comprising about 39% of all businesses—a notable increase of 13.6% since 2012. (Source: The 2023 Impact of Women-Owned Businesses Report)

What Are The Advantages of Small Business Loans For Women?

Small business loans tailored for women are particularly beneficial for female-owned businesses that have historically faced challenges in accessing financing due to several factors:

Little or Poor Credit History

The credit system historically has not favored women. Until 1974, women were unable to apply for their own credit scores. Despite advancements, women often maintain credit scores approximately 20 points lower than their male counterparts. Many traditional banks impose stringent minimum credit score requirements, making it difficult for female entrepreneurs to secure loans. Fortunately, many online lenders have lower minimum credit score requirements.

Low Working Capital/No Collateral

On average, women tend to invest less personal capital into their businesses compared to men, who often use personal funds to launch their ventures. Some lenders equate greater personal investment with stronger commitment to the business, potentially favoring applicants who have invested more of their own funds. This approach may overlook reasons such as financial discrimination or family responsibilities that may lead women to allocate their funds elsewhere.

Industry/Niche

Women are more likely to start businesses in industries perceived as “low-growth” or “risky,” such as hospitality and retail. At 60Day Capital, our lenders do not adhere to industry stereotypes or reject applications based solely on perceptions of industry trends or risk.

If your business demonstrates strong performance, we are inclined to overlook these traditional disadvantages and offer borrowing amounts, rates, and terms tailored to your business’s needs. Your cash flow and performance serve as primary criteria for determining the financing product that best suits you, rather than factors like industry norms or background.

In summary, small business loans designed for women are particularly effective for business owners facing traditional barriers but who operate successful businesses.

What Are The Disadvantages of Small Business Loans For Women?

While we strive to provide the best small business loans to every dedicated business owner, the reality of business financing is different. The most favorable products are typically reserved for borrowers with excellent credit, strong cash flow, and a proven track record spanning several years. Until these criteria are met, interest rates and payments may be higher.

In essence, while we often offer higher borrowing amounts, lower interest rates, and longer terms compared to traditional banks, it’s important to recognize that not everyone will qualify for everything they desire. A business loan may not resolve all challenges, but it can significantly help overcome major obstacles to growth. Successfully repaying your initial business loan can also improve your eligibility for future loans with more favorable terms.

PROS
CONS

Business Loan Product Comparison

LOAN TYPES
MAX AMOUNTS
RATES
SPEED

Who Qualifies For Business Loans for Women?

Approved businesses generally met the following criteria:

ANNUAL REVENUE

$120K+

CREDIT SCORE

525+

TIME IN BUSINESS

6 months+

How To Apply For Women-Owned Business Loans:

Our application process is rapid and uncomplicated, and with the necessary documentation, you can complete it in just minutes. Depending on the product you select, funds can be deposited into your bank account within 24-48 hours. Here’s how to apply:

Step 1: Consider Your Needs

With the support of 60Day Capital, women entrepreneurs can access a diverse range of financing products. Since you understand your business best, we encourage you to research each product to determine which aligns best with your cash flow. Does your business experience seasonal fluctuations? Is your industry susceptible to periodic revenue dips? Addressing these questions before applying will enable us to establish the most suitable repayment structure for your needs.

Step 2: Gather Your Documents

Depending on your desired financing option, you may need the following documents and information:

Step 3: Complete the Application

You can initiate the application process by contacting us or completing our straightforward one-page online application. You’ll need to input the information outlined in Step 2 above, along with your preferred funding amount.

Step 4: Speak to a Representative

Once you submit your application, a representative will reach out to you to discuss the repayment structure, interest rates, and terms associated with your available options. This ensures transparency, so you can rest assured there are no surprises or hidden fees during the repayment process.

Step 5: Receive Approval

The approval process typically takes a few business days, depending on the product you select. Once approved, funds should be deposited into your bank account within 1-2 business days.

Your Business Loan Gets Set Up – Now What?

Obtaining a business loan isn’t just about securing financing; it’s also a valuable opportunity to begin building or enhancing your credit profile.

Regardless of the type of business loan you secure, it’s essential to make all required payments punctually and completely. If you opt for a business line of credit or another form of revolving credit, strive to maintain a balance below the credit limit.

Consistently meeting your business financing obligations on time and in full will have a positive impact on your credit score. This, in turn, can lead to more favorable rates and terms when you seek future business financing.

What If I’m Declined For Women-Owned Business Loans?

If your application is not approved, it may be because we’ve assessed that your business may not currently be able to manage additional debt. In such cases, we may recommend considering alternative financing tools such as business credit cards or personal loans. These options typically have more flexible qualification criteria compared to traditional business loans. At 60Day Capital, we’re committed to helping you explore these alternatives and advising you on the most appropriate solutions.

Business Grants for Women: A Different Approach to Funding

Business loans are not the only avenue for financing a woman-owned business. Non-profit organizations and other entities offer small business grants specifically designed for women.

Similar to a term loan, a business grant provides a lump sum of cash. However, unlike loans, grants typically do not require repayment. Incorporating a grant alongside business credit can significantly expedite the growth of your business.

Additional Resources for Women

Interested in small business grants for women? Here are five resources to help you get started:

Grants.gov

Growth Grants from the National Association for the Self-Employed

Ambergrants for Women

Grants for Women

SBA Grants

Contact us

175 Great Neck Rd # 206, Great Neck, NY 11021, United States

info@60daycapital.com