When you have bad credit, it can feel like there’s a limit to how much funding you can get. Fortunately, there are options available to female business owners that help them move past this obstacle. It may take getting creative with financing and a little bit of time, but it is possible to start and grow a business even with less-than-stellar credit.
A business loan is a lump sum of capital that you pay back over a set term with an agreed-upon interest rate. It can be used to cover operating expenses, purchase inventory or equipment, invest in new projects and more. It’s important to consider your needs and the terms of each product before you apply. Make sure to research the lenders carefully as there are different rates, terms and fees that are often included in a business loan.
This type of financing gives you the cash you need right now based on your projected future revenue. Your repayments will then be a percentage of your revenue each month. This is an excellent option for women with good revenue streams who want to add extra cash to their operating budget or make a large purchase that will increase their future revenues.
The government offers a number of business loans through its Small Business Association (SBA). While it doesn’t have specific loan programs for women, you can qualify with a low credit score as long as your company is properly set up as a separate entity with an EIN and D-U-N-S number. It also has a range of other business development grant options for women entrepreneurs. startup business loans for women