Business Loans For Women

Women business owners continue to face unique challenges when seeking business loans. Biz2Credit has helped hundreds of women secure business loans to pay off unwanted debt, improve or expand their business, purchase inventory and equipment, meet seasonality challenges, and fund operating expenses.

At Biz2Credit, Women business owners complete one application to get matched with multiple custom business loan products ranging from $500 to $15 million.

Women business owners continue to face unique challenges when loans for business. Small business loan approval rates are 15% -20% lower for women-owned companies than they are for businesses owned by men (Biz2Credit Analysis of Women-Owned Businesses). Additionally, revenue and credit scores are lower and operating costs are higher for women.

Despite these challenges, the number of businesses owned by women continues to grow. More than 8.3 million businesses - or 29% of all enterprises - are owned by women

(Source: American Express Report on Women-Owned Businesses). Women employ 5.5 million employees and are one of the fastest growing segments of the small business community.

Biz2Credit's platform makes available many types of financing for women. Our platform consists of extensive network of funding sources and partners who are willing to provide loans for women business owners. These lenders range from traditional banks with loan programs for women business owners to the SBA and community microlenders.

A History of Success Securing Loans For Woman who run Small businesses

We have helped hundreds of women secure business loans to pay off unwanted debt, improve or expand their business, purchase inventory and equipment, meet seasonality challenges, and fund operating expenses.
Nisha Khanna, Owner of Sweet & Sassy Salon franchise in Old Bridge, New Jersey

"With the small business loan I got through Biz2Credit, I was able to build my store, get inventory in here, and train my staff. Of course I would recommend Biz2Credit. They were very easy to work with and the process was seamless. They find the best banks to work with you."

Sanjyot Dunung, CEO of Atma Global in New York City

"Biz2Credit knows the credit marketplace and understood our high caliber clients. We have done our initial funding and now looking at expansion. Biz2Credit is very efficient and easy to work with. They are very professional, and they know their business."

From day one, talking to someone from Biz2Credit was like talking to a family member.  

Sarita Ekya Restaurant Owner

Facts and Figures About Small Business Loans and Women owned Business

  • Small Businesses

    • Generally counted as firms with fewer than 500 employees
    • Represent 99% of all employer firms
    • Provide jobs for over half of the nation's private workforce and have generated nearly two-thirds of the new jobs over the past 15 years
    • Pay 44% of total U.S. private payroll and comprise 97% of all U.S. exporters (source: SBA Office of Advocacy's Research and Statistics)
  • Women-Owned Small Businesses

    • Nearly one-quarter of new registrants on Biz2Credit were women-owned businesses
    • More than 8.3 million businesses -- or 29% of all businesses -- are now owned by women(Source: American Express OPEN State of Women-Owned Businesses Report.)
    • Women-owned businesses in the U.S. employ 40% more people than the top three employers(McDonald's, IBM and Wal*Mart) combined (source: American Express State of Women-Owned Businesses Report.)Between 1997 and 2012, the number of women-owned businesses grew at a pace that was 1.5 times the national average(source: American Express OPEN State of Women-Owned Businesses Report.)
    • The three states with the largest number of women-owned businesses in 2007 were California, Texas, and New York. The three cities with the largest number of women-owned businesses in 2007 were New York City (305,145), LA (136,626) and Chicago (92,132). (source:U.S. Census Bureau's Survey of Business Owners, Dec. 7,2010)
    • The Small Business Administration (SBA) offers a number of resources to women entrepreneurs:
    • National Women's Business Council
    • Gateway for Women-Owned Businesses Selling to the Government
  • Small Business Lending Statistics

    • Small business lending is a $1 billion market in the U.S. (source: SBA)
    • It typically takes business owners 5-6 months to get a loan (source: banking industry data)
    • Small business owners typically go to 5 or 6 banks before they are able to secure some type of financing (source: Biz2Credit research)
    • According to industry sources, business owners spend anywhere from $2,000 - $20,000 to get loans -- either on their own through business brokers -- and are often rejected by banks
  • Bank Statistics

    • Big banks -- institutions with $10 billion+ in assets -- reject about 8 out of 10 the loan applications they get (source: Biz2Credit Small Business Lending Index)
    • Community banks, regional banks, and other smaller lenders typically approve about half of the small business loan applications they receive (Biz2Credit Small Business Lending Index)
    • Banks spend an estimated 9-10% of their small business lending revenue to acquire new small business customers (source: industry reports)
    • Business borrowers pay about 1% in loan processing fees (source: industry reports)
  • Biz2Credit Statistics

    • It typically takes business owners 3-4 weeks to get a loan through Biz2Credit
    • After having been initially rejected for loans, 40% of the small business owners who use Biz2Credit's BizAnalyzer to increase their credit scores and improve their chance of getting a loan are able to secure funding within 3-4 months. The statistics are similar for business loans for women.
    • Businesses secure funding at a 74% approval rate when they use Biz2Credit case managers

Annual Revenues, Profits of Women-Owned Businesses Leaped in 2016, According to Biz2Credit Study

Study of 25,000 Companies Finds Average Annual Earnings Climbed 47 Percent, Average Annual Earnings Jumped 61 Percent in a Year-to-Year Comparison

Average Annual Revenues of women-owned business rose to $210,000 in 2016, an improvement of 47% from $142,804 in 2015.

In comparison, businesses owned by men generated about 73 percent more revenue ($363,414) on average than women-owned businesses in 2016.

"Overall, the figures show that 2016 was a strong year for small businesses -- revenues were up significantly. However, there is still a large gap between the sales of male-owned and female-owned companies," explained Rohit Arora, CEO of Biz2Credit, who oversaw the research. "It is encouraging that women entrepreneurs are acquiring credit at nearly the same dollar amount of their male counterparts. This indicates a commitment to growth of their companies." Rohit Arora, CEO of Biz2Credit

WHAT ARE THE MOST POPULAR BUSINESS LOANS FOR WOMEN? HERE ARE THE TOP 4 FOR 2017:

  • SBA Loans

    The Small Business Administration has a comprehensive offering of resources for female entrepreneurs. Below, we will talk about the various loan and grant program resources offered for women business owners by the SBA.

    LET BIZ2CREDIT HELP YOU APPLY FOR AN SBA LOAN FOR WOMEN IN JUST A FEW MINUTES

    SBA loans are technically loans guaranteed by the government and given out by financial institutions. That means lenders face less risk lending to you, and you qualify for better loan options than you would otherwise. SBA loans are great financing options for those who can qualify-you'll get low-rate and long-term financing.

  • Term Loans

    Term loans are the most common type of small business loan. A borrower receives a lump sum cash amount that they pay back, plus interest, over a fixed amount of time. These are loans for businesses that are usually associated with banks. Many alternative lenders such as Biz2credit and others now offer low-rate, long-term financing and do so at a much faster time to funding.

  • Short-Term Loans

    Short-term loans are often an ideal solution for small business loans for women owners who only need a small amount of capital, with a short repayment window.

    Short-term loans usually are repaid within 3 and 18 months, and loan amounts can be anywhere from $2,500 to $250,000. Short-term loans are also great options if you don't have strong credit or have only been in business for short amount of time.

    SEE WHAT YOU QUALIFY FOR IN JUST A FEW MINUTES

  • Business Lines of Credit

    Many women business owners seeking a loan also consider a business line of credit.

    Business Lines of Credit can help bridge the gap during seasonal lulls and other lean periods. A business line of credit can ensure that you always have the capital you need, when you need it.

10 Top Business Grant and Support Programs For Woman-owned Businesses

1. InnovateHER Challenge InnovateHER provides an opportunity for entrepreneurs throughout the U.S. to showcase products and services that have a measurable impact on the lives of women and families (30%), have the potential for commercialization (40%), and fill a need in the marketplace (30%).

The U.S. Small Business Administration hosts an annual competition for businesses with a marketable product or service that positively affects women's lives. To participate, you must first enter and win a local InnovateHER Challenge to advance to the national semifinal round. The top three national finalists will win $40,000, $20,000 and $10,000, respectively.

2. Small Business Innovation Research and Small Business Technology Transfer programs (SBIR) The mission of the SBIR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy (Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons).

The SBA facilitates these two competitive programs, which ultimately provide grants to small businesses that contribute to federal research and development. Eleven federal agencies, including the departments of Agriculture, Defense, and Health and Human Services, post grant opportunities on their websites.

3. State and local small-business grants As a general statement, there are no formal grants on the federal level specifically targeted towards women only. However, there are many grants at the state and municipal levels. These programs are very competitive and time-intensive, here are a few resources to assist in your search.

4. Women's Business Centers The SBA sponsors about 100 Women's Business Centers nationwide, designed to help women entrepreneurs with business development and access to capital. Some, such as the California Capital Financial Development Corp., lend money directly, while others simply help you find small-business grants and loans that you may qualify for.

5. Economic development agencies Every state and many cities have economic development agencies focused on promoting a strong local economy. Even if the agency itself doesn't offer a small-business grant, it will likely be able to point you in the right direction.

6. Small Business Development Centers There are hundreds of these SBA-sponsored centers around the country, typically housed at colleges and universities. SBDCs offer free, one-on-one business consulting. Set up a meeting with your local SBDC advisor, who will be able to tell you about grants and other business financing opportunities in your area.

7. Private small-business grants for women Some private organizations and businesses have created national grant programs for women small-business owners. Here are two to look into:

8. Amber Grant The Amber Grant Foundation awards $500 to a different women-owned business every month. At the end of each year, one of the 12 grant winners is awarded an additional $2,000. The application is relatively simple: Explain what your business is, describe what you'd do with the grant money and pay a $7 application fee. The foundation's advisory board chooses the winners, looking for women with passion and a good story.

9. Eileen Fisher Women-Owned Business Grant Eileen Fisher, a women's clothing retailer, awards $100,000 to up to 10 women business owners each year. The EILEEN FISHER Women-Owned Business Grant supports innovative, women-owned companies that are beyond the start-up phase and ready to expand their business and their potential for positive social and environmental impact. To be eligible, women must make up at least 51% of your business's ownership and leadership, your business must have been in operation for at least three years, it must not exceed $1 million in annual revenue, and it must be focused on environmental or social change.

(The following grant is not specifically for women, but worth considering:)

10. FedEx Small Business Grant FedEx awards up to $25,000 apiece to 10 small businesses annually. The application requires an explanation of your business, how you'd use the money, photos of your business and - this part is optional - a short video explaining your business. You don't need a FedEx account to apply.