While many of the loan options below are available to all entrepreneurs, women may face unique challenges when trying to secure financing. For example, a woman who spent years as a stay-at-home parent may not meet the minimum work experience requirements that most banks look for on paper. Some of the loans below are specifically designed to address these types of roadblocks and provide financial assistance as well as support and resources.
Women can also find startup funding through small-business grants and crowdfunding. The best places to look for grants include government agencies and nonprofit organizations.
Other startup funding options for women include merchant cash advances, invoice financing and equipment financing. A merchant cash advance allows you to borrow against your future credit card receipts and doesn’t require years of business history or a perfect credit score. However, it can be more expensive than other types of financing. Invoice financing (also known as accounts receivable funding) works similarly by allowing you to borrow against your outstanding invoices. Noble Funding, for example, provides up to $8,000,000 in invoice financing. Equipment financing lets you borrow against your valuable assets, such as vehicles and machinery. You can also find this type of financing at banks and online lenders.
Lastly, hard money loans are another option for business startups that can be found at banks and credit unions. These loans are risky and can take a shorter amount of time to close, but they come with high interest rates and the investor could foreclose on your business’s assets if you fail to repay your debt. business startup loans for women