There are many initiatives, both governmental and non-profit organizations, that seek to support women entrepreneurs in search of financing. However, traditional business loans are not always the easiest way to develop a small business. In many cases you need to have good credit to qualify. We understand that this can scare many female entrepreneurs and businesswomen
If you are an entrepreneurial woman with bad credit and you are looking to access small business loans or alternative funding options, keep reading! We will talk about some business funding options to grow your business on this coming year. First, let's explore some women in business statistics:
What prevents women's access to credit?
According to Fundera 2021 statistics, women only receive 80% of the capital that men receive when seeking financing and 16% of the conventional small business loans. To give you an idea, this places women entrepreneurs at 5% points less likely to receive a loan than male entrepreneurs are.
In this sense, you should know that if you want to apply for a traditional loan, the first step is to convince a bank to approve the loan. This is not an easy task for anyone, whether you are a man or a woman. In any case, here we leave you our guide on: How to get small business funding for women with bad credit.
A female entrepreneur might still be able to get business funding based on personal credit ratings, collateral, business history, anticipated performance, and other factors. But if your credit rating isn’t in the 700+ zone – you’re probably not going to get a traditional business loan. But, there is good news, women entrepreneurs have other options at their disposal! Let's review some of the financing options for women's small businesses:
Small business loans and alternative funding for women entrepreneur:
Federal government grants:
If your credit record is low (under 600), you’ll have to find other ways to get those funds you need to start your business and convince funders to take a risk on you. But, of course, a solid business plan always helps, same as networking.
The site Grants.gov is a goldmine of information on how to find relevant grants. First step is to apply for a D-U-N-S number. This will allow you to establish a business credit history and directly access your business credit report from Dun & Bradstreet.
Plus, once you have a D-U-N-S number, you can apply for small business grants listed on Grants.gov, a database of federally sponsored grants. When you have your D-U-N-S, you can register to do business with the U.S. government through it's System Award Management.
2. Government funding programs:
Options such as the "Women-Owned Small Businesses Federal Contracting Program" can help you get access to work from the federal government. But first, you have to check if you meet the program eligibility requirements. In addition, the Small Business Administration (SBA) offers workshops and networking events that can educate you on the best practices for businesses.
The National Women’s Business Council, a non-partisan federal advisory council, holds in-person and online networking events. Search for other networking and training opportunities near to you.You can meet with business mentors at a local SBA resource center if you need help understanding your funding options and how to prepare your application package for a bank loan.
3. Working capital programs for small businesses:
At One Park Financial, we work with businesses that have been open for three months or more and have revenues of at least $7,500 a month, and funds are typically available within 72 hours. In addition, business owners don’t need perfect credit scores to qualify for funding.
One easy way to get started with alternative working capital is by getting pre-qualified by One Park Financial. We are an alternative funding company that will give you access to a financial expert who can discuss your business needs and options to determine what funding types best meet your needs. Connect us and discover the options that make sense for you and your business.