Merchant Loans for Women Business Owners

The number of small businesses owned by women is growing at record highs. If you’re wondering where you can find merchant loans for women, just read this article.

Business Funding for Female Entrepreneurs

According to Kansas-based Ewing Marion Kaufman Foundation, a non-profit, private foundation,women represent 40% of new entrepreneurs in the U.S. The number of new women-run businesses is increasing with double digits. Moreover:

  • Women are currently running more than 11.6 million companies
  • About 9 million employees are working at women-owned firms
  • The District of Columbia ranks 1st in the country for the number of firms owned by women
  • New York is considered the top U.S. city for female founders

However, the picture isn’t the same with female business owners’ access to small business funding. According to one of the online lenders in the country, only 1 in 4 of women entrepreneurs turn to a lender for financing.

Importantly, there’re no financing solutions that’re specifically called “women loans.”So, there’re no loans meant only for women. In reality, you just apply for a business loan by submitting some personal information, and then, either you get approved for that or not.

Business or Merchant Loans for Women

Visa’s State of Female Entrepreneurship study shows (based on survey answers by650 female small business owners) that 61% self-funded their own startup, which is the very bootstrapping.What about popular business funding options for women? Here they are:

  1. Business Lines of Credit

Good for business with high and low revenue periods, e.g., retail and food, and those who need flexible funding.

  1. Grants

You must meet specific application requirements to qualify.

  1. Merchant Loans From a Reputable Alternative Online Lender

Unlike traditional lenders like banks, alternative online lenders now offer business funding options no one could even thought of in the past. Only, you should apply to a true business funding professional that can get you merchant loans with exceptional terms and the cheapest rates in your industry.

  1. Microloans for Women Business Owners

Good for businesses with smaller capital needs, or those who can’t qualify for biggercapital.

  1. SBA Lender Match — 7(a) Small Business Loan

Small Business Administration requires borrowers to be U.S. based. There’re some other requirements as well.

  1. Rural Business and Industrial Loans

Good for cooperative agencies (profit or non-profit), an individual, a tribe, or a public body. 

  1. USDA (Farm Services Administration) Women Farmers and Ranchers

The FSA is currently focused on programs offering larger amounts to underserved farmers and ranchers.

  1. SBA 8(a) Business Development Program

Good for socially and economically disadvantaged people or entities, including women and minorities.

  1. Peer-to-Peer (P2P) Loans 

These are especially good for borrowers who boast good credit.

  1. Private Small Business Loans

Require good or excellent credit, a trustworthy business history, business plan showing how you’re going to spend the funds, and proof of how you’re going to pay back the amount. Collateral may also be required.

To sum up, you can’t find special business loans for female entrepreneurs. However, online lenders and other financial companies can get you the funding you need if you meet their requirements.

Author Bio:As the FAM account executive, Michael Hollis has funded millions by using merchant loans solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.