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The 5 Best Small Business Loans For Women

Getting a small business loan for a woman-led business is tough but not impossible. Start here to find the right funding for your business.

    Shannon Vissers

  • UPDATED

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Small business loans for women can be hard to come by. Obtaining financing can be a significant hurdle when starting or expanding a business, but this is particularly true for women. While comprising nearly a third of small business owners, women receive less than one-sixth of all business loans. Why is this? How can you get around lending bias and procure a business loan for your small business, even with the odds stacked against you? 

Keep reading to learn the answers to these questions and find the best loan options to help you finance your woman-led small business.

Learn More About Our Top Picks

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BusinessLoans.com

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  • Best small business loans for women with bad credit
  • Maximum Borrowing Amount: $3 million
  • Minimum FICO: N/A
  • Best small business loans for women with bad credit
  • Maximum Borrowing Amount: $3 million
  • Minimum FICO: N/A

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OnDeck

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  • Best short-term loans for women
  • Maximum Borrowing Amount: $250K
  • Minimum FICO: 625
  • Best short-term loans for women
  • Maximum Borrowing Amount: $250K
  • Minimum FICO: 625

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Accion

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  • Best small business loans for minority women
  • Maximum Borrowing Amount: $100K
  • Minimum FICO: 570
  • Best small business loans for minority women
  • Maximum Borrowing Amount: $100K
  • Minimum FICO: 570

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Lendio

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  • Best SBA loans for women
  • Maximum Borrowing Amount: $5 million
  • Minumum FICO: 600
  • Best SBA loans for women
  • Maximum Borrowing Amount: $5 million
  • Minumum FICO: 600

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National Business Capital

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  • Best small business startup loans for women
  • Maximum Borrowing Amount: $5 million
  • Minimum FICO: N/A
  • Best small business startup loans for women
  • Maximum Borrowing Amount: $5 million
  • Minimum FICO: N/A

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Table of Contents

What Are Business Loans For Women?

Business loans for women include small business loans and other financing products that women-owned businesses can receive. Compared to traditional financing, alternative (online) business loans are easier for women to obtain, thanks in part to the use of an automated underwriting process that helps eliminate gender bias.

Why Do Women Have Trouble Receiving Financing?

Despite making up 30% of the small business owner demographic in the United States, women only receive 16% of conventional small business loans and 17% of government-backed Small Business Administration loans, according to the 2014 Majority Report of the U.S. Senate Committee on Small Business and Entrepreneurship (one of the only comprehensive reports about business financing for women).

The reasons women have trouble receiving business financing are multifold. However, one of the main culprits is gender bias against women among traditional lending institutions. Simply put, banks are more likely to reject a loan application if it comes from a woman. This in-built bias additionally leads to fewer applications from women due to a supposition of rejection.

Even when women’s business loan applications are accepted, they receive smaller loans than their male counterparts, according to the above-mentioned report. This is in part due to that same institutional gender bias, and in part because women request smaller loans than men, on average.

Women entrepreneurs may also face challenges receiving relevant business training and counseling due to a lack of funding, according to the U.S. Senate report.  

9 Types Of Business Loans For Women

ResourceDescription

SBA Loans

Government-backed loans offered by the Small Business Administration and its partner lenders.

Online Loans

Fast, automated loans offered by independent business lenders online. 

Business Lines of Credit

A credit facility from which the business can borrow money at any time. 

Business Credit Cards

Credit cards used for business expenses.

Microloans

Small loans, often used by startups, offered by the SBA, nonprofit lenders, or other sources. 

Nonprofit Business Loans

Business loans offered by nonprofit lenders. 

Crowdfunding

Funds sourced from a network of backers or investors. 

Business Grants

Free funds granted to businesses, normally for a specific project. 

VC Funding/Angel Investors

Investors who give money to businesses in exchange for equity in the company. 

Any of the above types of business financing can be a suitable loan for women-owned small businesses. But the best small business loan for your situation depends on your unique business and financial needs.

5 Best Business Loans For Women

The following business lenders offer a variety of small business loans for women, including SBA loans for women, small business loans for minority women, small business loans for women with bad credit, and small business startup loans for women.

1. BusinessLoans.com: Best For Bad Credit

BusinessLoans.com

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Pros

  • No minimum credit score to apply
  • Receive loans as quickly as 24 hours
  • Large business loans available

Cons

  • Minimal information disclosed on company website

Why We Chose BusinessLoans.com For Best Small Business Loans For Women

BusinessLoans.com is a small business loans marketplace with options for women business owners with bad credit. In fact, there is no minimum credit score required to apply. If you’re not sure you qualify for a business loan due to bad credit, you can apply to BusinessLoans.com and get matched with up to five loan offers. This is a good starting point for women with bad credit to find out what types of financing fit their credit profiles.

BusinessLoans.com Services

BusinessLoans.com does not originate loans but connects applicants with partnered lenders from within its network. Some online loan types you can apply for using this free service include short-term loans, long-term loans, lines of credit, and merchant cash advances. The maximum amount you can borrow through BusinessLoans.com is $3 million.

BusinessLoans.com Rates & Fees

Rates and fees vary depending on which partnered lender you choose as well as your credit score and the status of your business. Unfortunately, BusinessLoans.com does not give any sample rates or fees on its website.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com does not have any specific eligibility requirements to apply. However, your credit history and other business credentials will determine what types of financing you qualify for. For example, bad-credit applicants will likely be connected with merchant cash advances and short-term loan offers as opposed to long-term loans.

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2. OnDeck: Best For Fast Loans

OnDeck

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Pros

  • Same-day funding available
  • Lower borrowing costs on repeat loans
  • No prepayment penalty
  • Transparent pricing

Cons

  • Origination fee is charged
  • High average APRs

Why We Chose OnDeck For Best Small Business Loans For Women

OnDeck is an excellent option for women who need fast short-term financing for their businesses. OnDeck is a reputable short-term business lender offering same-day loans to qualified applicants. Rates are not the cheapest, but for businesses willing to pay for speed and convenience, OnDeck is a good choice.

OnDeck Services

OnDeck’s online business lending services include short-term loans from $5K to $250K, with repayment terms up to 24 months. OnDeck also offers business lines of credit from $6K to $100K, with a 12-month repayment term that resets after each withdrawal.

OnDeck Rates & Fees

OnDeck states that the average APR for its STL is 62.1%; its average APR for lines of credit is 48.9%.

OnDeck Eligibility Requirements

OnDeck requires a credit score of 625, as well as one year in business and annual business revenues of at least $100K.

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3. Accion Opportunity Fund: Best For Minorities

Accion

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Pros

  • Long-term financing available
  • Caters to marginalized communities, including women
  • Low credit score requirements
  • Low interest rates

Cons

  • Small maximum borrowing amount

Why We Chose Accion Opportunity Fund For Best Small Business Loans For Women

Accion is a nonprofit business lender that specializes in lending to marginalized communities that have been historically shut out of business lending — namely, women and minorities. Borrowing requirements are low, which makes this lender a strong choice for women who may not have a lot of business experience and wouldn’t be able to qualify for a bank loan.

Accion’s borrowing rates are quite reasonable, in contrast to the predatory rates offered by many business lenders that cater to minority business owners and bad-credit applicants.

Accion Opportunity Fund Services

Accion offers short- and medium-term business loans from $5K to $100K. Term lengths range from 12 to 60 months.

Accion Opportunity Fund Rates & Fees

Accion interest rates range from 5.99% to 17.99% and there are no prepayment penalties. The rate you will be offered depends on your credit score and financial standing.

Accion Opportunity Fund Eligibility Requirements

To qualify for an Accion Opportunity Fund loan, you’ll need 12 months in business, a 570 FICO, and $50K in annual business revenues.

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4. Lendio: Best For SBA Loans For Women

Lendio

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Pros

  • Numerous types of financing available
  • Partners with Preferred SBA Lenders
  • Accepts subprime credit scores
  • Lots of helpful information on company website

Cons

  • Funds can take awhile to disburse

Why We Chose Lendio For Best Small Business Loans For Women

SBA loans have a higher acceptance rate for women compared to non-SBA business loans, and Lendio is an ideal place to apply for an SBA loan online. Similar to BusinessLoans.com, Lendio is an online business loan marketplace you can use to check your eligibility for financing and apply for multiple loans at once. Lendio has the added benefit of including SBA lenders in its network, including SBA Preferred Lending Partners.

Lendio Services

Through Lendio, you can apply for SBA loans as large as $5 million. Some of the SBA loan types you can apply for through Lendio include:

In addition to government-backed small business loans for women, you can apply to many other types of business financing with Lendio. This includes term loans, lines of credit, equipment financing, accounts receivable financing, and more.

Lendio Rates & Fees

Lendio’s rates and fees vary depending on the lender and financing type, as well as the applicant’s financial status. For SBA loans specifically, rates are based on the Prime rate determined by the Federal Reserve.

Lendio Eligibility Requirements

Lendio doesn’t have any particular eligibility requirements to apply for financing in general, but for Lendio SBA loans, you will need a minimum credit score of 600, at least two years in business, and monthly business revenues of at least $8K.

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5. National Business Capital: Best For Startups

National Business Capital

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Pros

  • Low credit score requirements
  • Suitable for startups
  • High borrowing amounts
  • Long-term financing available

Cons

  • Rates can be high

Why We Chose National Business Capital For Best Small Business Loans For Women

National Business Capital is another online marketplace for business loans. National has a large network of lenders and numerous types of financing available for various needs and credit profiles. National Business Capital is an especially good fit for women-owned startup businesses. As long as you have good credit, your women-owned startup can qualify for financing through National, even without any time in business or business revenue.

National Business Capital Services

Some of the lending services offered by NBC include:

  • Term loans
  • Lines of credit
  • Equipment financing
  • SBA loans
  • Revenue-based financing

Loan amounts range from $10K to $5 million.

National Business Capital Rates & Fees

Interest rates start at about 7% but can be much higher if you have subprime credit. Term lengths for most loans range anywhere from six months to five years (with the exception of long-term SBA loans). Origination fees vary by lender.

National Business Capital Eligibility Requirements

There are no minimum qualifications to apply with National Business Capital. However, the preferred prerequisites are one year in business, a 580 FICO, and $125K in gross annual revenue.

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Other Resources For Women In Business

There are a number of resources available to help women entrepreneurs further their businesses, including:

Business Loans For Women: FAQs

Where can women get small business loans?

Women can get small business loans from any business lender, whether it be a bank, credit union, CDFI, or online lender. But your best bet to avoid gender bias in the business lending industry is to apply for an SBA loan or with a reputable alternative business lending service such as OnDeck or Lendio.

How do I apply for a women's business loan?

Most online loans have quick, easy online applications that will ask some basic information about your business. If you are pre-approved based on your initial application, you will likely be asked to submit additional documentation to verify your identity and business financials, along with a business plan that details how you will use the loan proceeds.

Are there loans for women starting a business?

Startup loans are offered by both banks and online lenders, but are not as easy to come by as a loan for an already-established business. It helps to have good personal credit.

You might also consider a personal loan for business, a business grant, VC funding/angel investing, or crowdfunding.

I want to purchase a small business. Where do I start?

Depending on your qualifications, there is available funding for women purchasing a business. Some business acquisition loan options include startup loans, bank loans (including SBA loans), and business expansion loans.

I have bad credit. Am I still eligible for financing?

Yes, but you’ll pay higher fees than you would if you had good credit. You will also have fewer options, as most business lenders will want you to have good credit.

Bear in mind that there are a lot of “payday” type loans out there that will accept bad credit applicants, but the terms are often opaque and even predatory. Ideally, you should improve your personal credit score before applying to loans.

I am a woman of color. What are my best funding options?

People of color face even greater challenges in obtaining financing, particularly when they’re female. There are loans for minority business owners with bad credit, though this, of course, assumes you have bad credit and is not specific to women.

You can start on the path to funding by contacting the Minority Business Development Agency. In addition to online resources, the MBDA maintains business centers in most major cities. One of the services they offer is helping minority-owned businesses connect with lenders.

Final Thoughts About Business Loans For Women

The best type of loan for your woman-owned business depends on various factors, including your income, time in business, credit score, amount of capital needed, how fast you can pay it back, and some other considerations.

Don’t qualify for a business loan or need funding for a startup? You can also apply for business grants for women as an alternative source of capital to help fund your woman-owned business.

In Summary: 5 Best Business Loans For Women

  1. BusinessLoans.com:
    • Best small business loans for women with bad credit
    • Maximum Borrowing Amount: $3 million
    • Minimum FICO: N/A
  2. OnDeck:
    • Best short-term loans for women
    • Maximum Borrowing Amount: $250K
    • Minimum FICO: 625
  3. Accion:
    • Best small business loans for minority women
    • Maximum Borrowing Amount: $100K
    • Minimum FICO: 570
  4. Lendio:
    • Best SBA loans for women
    • Maximum Borrowing Amount: $5 million
    • Minumum FICO: 600
  5. National Business Capital:
    • Best small business startup loans for women
    • Maximum Borrowing Amount: $5 million
    • Minimum FICO: N/A
Shannon Vissers

Shannon Vissers

Senior Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Shannon Vissers
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