According to National Association of Women Business Owners, currently more than 11.6 million businesses in the US owned by women, which is 51% of the US businesses. The women owned business are employing almost 9 million people and generating $1.7 trillion in sales as of 2017. SCORE report found that women are slightly more in the game of starting businesses as compared to their male counterparts. The report reveals the statistics of 47% of women started businesses within the last year, compared to 44% of men.

Apart from the Small Business Administration (SBA) findings of 30% of their 7(a) loans went to women owned business, women in business are still experiencing difficulties, especially when it comes to getting funding for their businesses.

There are many financing options available for women business owners, but the downside is that having errors on your credit history will ruin your chances of getting approved for funding.

When A Women Owned Business Need Funding?

  • Expanding business
  • Cash flow
  • Hiring employees
  • Equipment purchase
  • Starting new project
  • Paying of bills and taxes

Business Loans for Women with Bad Credit

Being a women business owner you better know how much work and effort goes into keeping your business successfully running. Currently, due to the strict and long-drawn-out lending criteria and process, applying for a traditional business loan for your women-owned business is almost impossible. If by chance you are approved for one, you will be charged high interest rates and unfavorable terms.

Alternative Business Loans for Women with Bad Credit

Here are six of the best alternative business loans for women with bad credit;

  1. SBA Loans

The first place you consider for getting funding is Small Business Administration. SBA offer lots of funding programs to women owned businesses. SBA loans are considered as the most secured funding program. However, the loan under SBA belt are not for everyone. These loans have strict lending criteria and lengthy process. And if you need funding quickly, these loans are not suitable option.

  1. Business Loans for Women

These loans are especially made for women business owners. Business loans for women can provide you with working capital in just a couple of days. Plus your credit, good or even bad doesn’t matter in that type of lending. It’s fast and affordable funding process helps you to fulfill your business needs. These loans are mostly used for business’ growth purposes.

  1. Bad Credit Business Loans

Businesses experiencing difficulties in getting funding because of bad credit can acquire these loans. These loans are especially intended to help bad credit business owners to bridge the funding gap by getting loans even with bad credit problems. No matter what your credit score is, you are always a good candidate for bad credit business loans.

  1. Equipment Financing

As the name refers, this type of funding program is made to help businesses with bad credit to purchase the required equipment they need to augment their production cycle. Equipment financing help bad credit business owners by providing funding for the acquisition of equipment. However, the equipment leasing works somewhat differently. In equipment leasing, you can get the equipment by paying some down payment and repay a set amount of installment every month. At the end of the lease contract, you are eligible to possess that equipment.

  1. Business Lines of Credit

Business lines of credit is considered as the quickest way of funding. This type of funding can help bad credit businesses to draw a line from their receivables and use it where they deem necessary. Bad credit borrowers can acquire short-term business line of credit to fulfill short-term requirements. However for long-term business lines of credit, your credit score should be in good position. These lines can be used for purchasing inventory, cash flow, and operational expenses.

  1. Merchant Cash Advance

Merchant cash advance is not a loan, these are the advance payments against future sales that are made through credit/debit cards. Just because of their revenue based funding and no collateral requirement, cash advances are the best business funding options for bad credit borrowers. These advances can be used for inventory purchase, marketing and advertising, technology upgrade, equipment purchase, business expansion and renovation purposes.

If you are a women business owner and experiencing bad credit problems, these bad credit business loans can help you. For more details, please call us on our toll free number (833) 827-4412. Alternatively, get your free online quote by filling our online application form, if you’re ready to apply for business loans for women with bad credit.


Small Business Financing News │ Merchant Advisors | blog
6 Best Small Business Loans for Women with Bad Credit
6 Best Small Business Loans for Women with Bad Credit
Looking for funding to fund your small business? The road ahead is full of twists and turns because it does require a lot of time and research to locate the best funding program that suits your business. Due to theRead more
Compare the best loan providers online for your women-owned business and get your business funded even with bad credit without any hassle.
Merchant Advisors
Merchant Advisors