Did you know that today, according to American Express’s recent study, there are over 11,313,900 woman-owned businesses in the United States? However, women still have a harder time attaining capital than men because they are averaging 20 points lower on their credit scores.
Bad credit, as defined by FICO as a credit score between 300 to 629, shouldn’t be a hindrance to starting and growing a healthy, successful business and there are still ways to find business loans for women with bad credit!
Business Loans for Women with Bad Credit
There are many financing options out there for women with bad credit, but the important thing is that you do your shopping and careful research before deciding on a loan option to go with.
Many of these options have high APRs, just as quick loans do, but to balance this out they have very fast application processes and are quick to send funding. It’s up to you to decide which one suits your needs best!
While Fundbox doesn’t require a minimum credit score, you need $50,000 annual revenue and a minimum of three months in business to qualify for the loan. Funds are deposited as fast as the next business day, but funding tops at $100,000.
Furthermore, it’s only good for short-term financing, as the lines of credit need to be repaid weekly for up to 12 weeks.
Kabbage requires a credit score of at least 560 to qualify for their loan, but they offer up to $250,000. Instead of focusing on the credit score, they’ll take a look at your accounting, banking, and data about online sales.
Unfortunately, their APR is 24% to 99% – a very high amount.
OnDeck requires only a 500 credit score and offer up to $500,000, though the lower your score, the higher your interest rate. They pay their loans in less than 24 hours, but there’s no benefit to paying the loan back early because it must be paid daily or weekly for 3 to 36 months.
StreetShares requires a personal credit score of greater than 600 and they offer up to $250,000, or 20% of your annual revenue. However, they only require you to have $75,000 of annual revenue to qualify with them.
Their loan term is 3 to 36 months.
Lending Club has the most flexible options of these choices. Their rates can get as high as 32% but as low as 8% depending on your credit score. They provide loans as high as $300,000 and terms can last as long as one to three years.
The major difference between the Lending Club and the previous lenders is that it is funded peer to peer, and not by a traditional bank.
Putting it All Together
As you can see, business loans for women with bad credit are vast and there seems to be a loan for any kind of situation you may find yourself in. The most important thing is to do the math and know exactly how much you need and how long it would take to repay the loan depending on your business figures!
Here are some other articles you may enjoy:
How to Find the Best Personal Loans
Identifying The Best Poor Credit Loans
Everything and More: All You Need to Know About Installment Loans
How to Get a Credit Card for the First Time (Without Ruining Your Credit)