Business Funding for Woman Entrepreneurs with Bad Credit
American Express has recently reported that there exist 11.313.900 woman-owned businesses in the US. Women are still having a difficult time getting approved for business funding they need. This article will tell you how this problem can be solved easily.
Women Business Owners in the US
Running a business isn’t easy for women. The US Small Business Administration reports that 30% of its small-business loan dollars in 2016 were received by women business owners. By the way, more than 30% of small businesses in the US belong to women.
When it comes to bad credit, this refers to a poor credit score (usually lower than 640) defined by FICO. In fact, credit scores can be as low as 300, but you’ll typically need at least a FICO score of 600 to be eligible for bad credit business financing. However, expect each lender to offer different requirements concerning credit scores.
According to womenonbusiness.com, one of the key reasonswhy women face difficulties is that they are, on average, nearly 20 points lower on their credit score as compared to their male counterparts.When applying for business financing, it's important for women business owners to understand all of their options and go with the bestbusiness model for their company.
So, it’s crucial to find a lender that delivers funding to business people with bad credit. This way, you can improve your chances of getting approved for a business loan. Consider turning to a reputable alternative online lender. Alternative lending hasbecome a major trend of late.
Business Funding for Women Entrepreneurs with Bad Credit
If you’re a woman business owner who has a poor credit score, you’ll have obstacles on your way when trying to get approved for a small business loan from a bank or a traditional lender. The reason is that these lenders have strict requirements and prefer to shy away from businesses with a poor credit history.
Gaining access to the necessary working capital is especially hard for female entrepreneurs. The good news is that alternative online lenders provide businesses, including bad credit businesses, with excellent opportunities to obtain business financing. The critical thing is to work with a respectable business funding provider to enjoy the lowest rates and the best terms for your own specific financial needs.
Also, remember to do yourresearch and be sure that the loan terms offered to you are competitive and can realistically meet your individual business needs.
Unlike traditional banks and other financial institutions, alternative online lenders offer an approval process that’s not complicated or challenging. Be sure it won’t take months to hear back. On top of this, traditional lending institutions require a lot of paperwork and lots of financial information from business owners.
So, if you, as a woman business owner, have ever applied for a business loan and ended up with a refusal, just look for a reliable alternative online lender to get the business financing you need. Search for a business financing provider that talks to every single business owner to know his/her business nuances and specifics so to provide the right funding for his/her business.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.