Business Loans for Women Owned Businesses

Business Loans for Women Owned Businesses
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Women owned businesses, especially small businesses and entrepreneurial ventures, account for a huge portion of the economy, and many millions of jobs.

Despite this, women owned businesses and women entrepreneurs have historically struggled to access the same small business funding options of their male counterparts.

As a result, many modern lenders offer special small business loans for women and women owned businesses, to help ensure that they can access the capital they need, the same as anyone else, to run their business and grow it as they see fit.

Read on to learn more about why special small business loans for women are necessary, the goal of these loan programs, and the typical requirements for obtaining a loan for women owned businesses at one of the nation’s premiere non-bank lenders, BizFly Funding.

Why Loans for Women Owned Businesses?

It may seem presumptuous or even sexist for lenders to be offering small business loans for women and loans for women owned businesses. 

This is not the case, however. The sexism that has occurred in the past, and the legacy that persists to this day, is the main reason why special consideration is required.

Why Loans for Women Owned Businesses

Lenders go out of their way to offer loans for women owned businesses today because of a major disparity in funding access between men and women. 

While statistics vary, there is no question that women and their entrepreneurial ventures have a much more difficult time obtaining small business funding than their male-run equivalents.

While women owned businesses collectively generate $1.8 trillion in revenue, and account for around 40% of the businesses in the modern economy, they are far less likely to be able to access loans, lines of credit, and other small business funding instruments. 

The gender pay gap and lifetime earning gaps, coupled with a credit score gap simply make it harder to generate capital and access credit as a woman entrepreneur or woman small business owner. 

Loans for women owned businesses, much like loans for other disadvantaged groups, seek to correct those injustices.

Women Entrepreneurs Loans Level the Playing Field

The main goal of these business loans for women and loans for women owned businesses is to level the playing field in the world of small business and entrepreneurial ventures.

In the modern world, businesses should succeed or fail based on their competency, how well they are run, and the innovative and effective development of their ideas into products and services.

Women Entrepreneurs Loans Level the Playing Field

The gender of their leaders or management team shouldn’t be a reason for them to be held back in the free market.

As many of the artificial barriers holding back women owned businesses are gender-based and sexist, providing specific business loans for women, and ensuring their access, is really a matter of breaking down those artificial barriers. 

The same holds true with special loan programs for minority owned businesses. The rationale is not to give anyone special treatment or play favorites. 

But for too long, that’s exactly what has happened in terms of small business funding, with men, usually white men, being the beneficiaries. 

These kinds of programs are, as we said, simply a matter of helping to level the playing field for disadvantaged and discriminated-against groups, including women.

Requirements for a Loan for Women Owned Businesses at BizFly Funding

One of the ways in which business loans for women are different than generic small business loans is they typically have lower credit score requirements. They may also be more generous in their requirements in other areas, such as time in business or monthly revenue requirements.

Like most small business loans and other small business funding products, it will vary considerably from lender to lender.

Is a Short Term Business Loan Right for My Business?

Private, non-bank lenders tend to have much more easily-met criteria than banks and financial institutions, as they are willing to take on more risk and serve a broader base of customers. 

This means that business loans for women with bad credit are also more likely to be available from these private lenders. In the US, one of the top private lenders in the small business funding world is BizFly Funding. 

They exclusively provide funding for businesses, with a wide range of options in their portfolio. That portfolio includes small business loans for women. 

The requirements to obtain a small business loan for women or a loan for women owned businesses at BizFly Funding are highlighted below.

We’ve also summarized the loan amounts available and other details.

  • The business must have been in operation for at least 2 full months at the time of application for a small business loan for women.
  • The credit score of the business must be at least 500 or greater.
  • At a minimum, the business must be generating at least $8,000 in monthly revenue, with higher amounts typically required for larger small business loans.
  • Small business loans for women typically have a term ranging from as little as 2 months to as long as 36 months.
  • The interest rates will vary based on the loan term, credit score, revenue, and other factors, ranging from 12% to 45%.
  • Loans as small as $10,000 are available at BizFly Funding.
  • Small business loans for women as large as $1,000,000 are also available, and everything in between.

Individual cases will vary, of course, and the best way to find out how much you can qualify for is to get pre-approved on the BizFly Funding website. 

The online application is quick and easy to use, and you can get everything taken care of in a matter of hours. In many cases, customers can have access to their loan funds within just 1 business day.

To learn more, or to start the application process for a business loan for women, loan for women owned businesses, or any other small business loan or credit product, check our BizFly Funding at http://bizflyfunding.com.

Frequently Asked Questions about Business Debt Consolidation

In general terms, there are several government forms and documents that can be used to obtain a formal certification as a women owned business, minority owned business, or other disadvantaged class. 

There may also be self-reporting criteria, or criteria that vary by state and local ordinances. At the federal level, you can self-certify, or obtain certification from one of four separate third parties that are approved by the US Small Business Administration (SBA). 

There are detailed requirements and a walk-through of the self-certification process available online from the National Women’s Business Council that serves as an excellent resource.

Once you have completed the self-certification or registration process on a government level, that should be sufficient for applying for things like loans for women owned businesses. 

However, it may be insufficient for things like competitive bidding or special consideration as a supplier for retailers, for example.

In those cases, you’ll need to follow the registration and certification provisions requested by the customer for your products or services (see the last two questions in this section for more on this topic).

An 8a certification is one of the certifications offered by the US Small Business Administration (SBA). Specifically, that certification is focused on disadvantaged minority groups, not including women, but rather certain ethnicities.

The program is a 9-year development program for businesses that qualify, which provides business training, counseling, marketing, and technical assistance to certified businesses. 

It does not play a role in the availability of small business loans for women at BizFly Funding or other lenders.

Supplier registration is a process that many businesses have to go through to get accounts set up with various retailers and outlets for their products. 

Typically, this involves registration through a supplier portal website, answering various questions and filling out various forms online. 

Once everything is processed and validated, companies receive their vendor or supplier number, which is used for item setups, bidding on projects, and formal purchase orders.

During the supplier registration process, there are typically sections devoted to business revenue, ownership, and minority or women owned status. 

Accurately reporting your women owned business during supplier registration can provide competitive advantages, much like applying for small business loans for women owned businesses can make it easier to obtain business funding.

A supplier portal is usually an online interface for suppliers/vendors to do business with retailers. 

Through the supplier portal, the business can be set up, purchase orders issued, product information provided, and guidelines and information obtained to facilitate sales and shipments.

It is also in the supplier portal where you usually complete the certification or self-declaration process of company information, which includes women owned business status. 

The credentials for a supplier portal as usually supplied by a retail buyer or the buyer’s team, for prospective vendors to get setup in their system and securely communicate requirements for projects or programs they are bidding on.

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