Women-owned businesses generate billions of dollars in revenue, but financing options are not always available. In fact, women business owners often receive less financing than male entrepreneurs and have lower credit scores than men, according to CNBC. It’s possible to secure a business loan with bad credit, but it takes creative funding and hard work.
If you have a personal credit score below 630, it’s likely that you won’t be approved for traditional business loans from banks and credit unions. But, you can find lenders that specialize in working with borrowers who have bad credit. These lender partners are known for offering flexible and short-term terms, as well as reporting payments to credit bureaus.
One lender that works with entrepreneurs with bad credit is LendingClub, which functions as a peer-to-peer lender. Women business owners can use their loan funds to buy equipment, expand or grow their company, cover expenses and consolidate debt. Additionally, the company offers a personal client advisor who can help you figure out how to best utilize your loan funds and budget your repayments.
Another option is a business line of credit, which is based on your future monthly revenue. Women can benefit from this type of financing because it’s easier to qualify than a term business loan, and you only pay for the amount that you borrow.
If you are looking for more permanent financing, consider applying for a Small Business Association (SBA) loan. The SBA provides a list of local offices that offer these loans to women and other entrepreneurs. In addition to SBA loans, you can also look for grants or cash advances from crowdfunding platforms and online lenders. business loans for women with bad credit