Women who are looking to open a small business or currently have a business but require additional funds to grow can turn to online lenders who are now offering loans specifically to women. As of recent, more and more online small business lenders are catering their services to women. Many women have an advantage in obtaining small business loans, as government support through agencies and not-for-profit companies are supporting women in the forefront of their businesses.
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For women who do not have the greatest credit or simply lack credit and loan history, online lenders are coming up with innovative ways to let these ladies obtain funding. An online lender that is changing the playing field Kabbage – they do not strictly look at credit scores or credit history. Instead, they have a different approach in that they approve lines of credits.
Some of the most popular online lenders that are offering small business loans to women are Funding Circle, Blue Vine, On Deck, Lending Club, Deal Struck, Can Capital, and Fund Box. Each company offers slightly different loan amounts, APR, loan term, and approval time. Be sure to conduct extensive research on each company so that you can go with the one that best suits your needs.
If you are a woman and you currently have a business but are looking to expand, a company called SmartBiz can be a faster and more efficient alternative to banks. They are known to have low rates and a longer-term amount so you can have peace of mind knowing that they will not be hounding you for payments. In the chance that SmartBiz does not approve your application for a loan, Lending Club is a reputable company that also offers great rates.
As with most online lenders offering loans to small businesses, there are minimum requirements. Some of these include a minimum credit score, must have been in business for at least two consecutive years, and you cannot have filed for bankruptcy in the prior three years.
The process of a applying for a loan as a woman is becoming easier and more accessible with the expansion of online lenders. Small business lenders want to empower and promote women to open their own businesses so acquiring loans is easier than it ever was before.
The retail market is female dominated and of course, running a retail store requires a great amount of money. Not only must the retail space be rented out or even purchased, there is a mass amount of inventory and merchandise that must be purchased. Select online lenders now offer a special line of credit that is explicitly for women in retail businesses, whether your business is a startup or up to three years old. Prosper is one online lender that offers loans to women opening a business in the retail sector.
Upon the financial crisis of 2008, businesses seeking loans and funding are turning to alternative methods of borrowing money. Banks are very traditional in the way they operate and they tend to not adapt or craft specific and tailored plans for individuals. That is why online lenders are becoming increasingly popular; they are doing what banks do not. Loans from online lenders tend to be short-term and fund inventory acquisitions; another bonus for women looking for a loan to open a small business.
Another aspect to consider is the application process. Many companies will require you to spend a lot of time in filling applications in-office. A modern approach that is sweeping the online lenders niche is online application and approval within minutes. Online lenders who cater to women specifically, will not ask questions regarding their marital status and combined household income, as they want to lean toward an approach that does not imply that they need a male counterpart contributing in her economic situation.
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The year 2016 will see more online small business loans being acquired my women because they tailor to the needs of women. Not only that, but there are loans now available specifically for women. Entrepreneurs are turning to online sources for small business loans and the number of people enrolling is expected to increase by substantial amounts in the coming decade. Women have the ability to stand on their own and small business loans want to support the growth of women entrepreneurs in society.