Get the Best Small-Business Loans for Women

If you’re a woman who owns a small business, your financing options are no longer limited to bank loans, SBA loans or small-business grants.

There are many choices for small-business loans for women and a host of online small-business lenders that have emerged since the financial crisis hit in 2008.

We’ve rounded up several types of small-business loans for women. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that take into account your qualifications.

JUMP TO OUR RECOMMENDATIONS:

• If you have poor credit and want cash fast
• If you have 600+ credit score, a strong business
• If you have 600+ credit and need to finance inventory
• If you have 620+ credit, are in retail or own a franchise
• If you’re a newer business with at least $25K in annual revenue

For women business owners with poor credit

OnDeck and Kabbage: Online lenders shift the focus away from personal credit score.
OnDeck and Kabbage are two lenders that offer loans to women who have less-than-stellar personal finances. Kabbage, for instance, doesn’t just rely on personal credit scores; it approves lines of credits based more on accounting, banking and e-commerce data. The access to capital can be costly, though.

Do you qualify?

• Personal credit score: No minimum required
• Time in business: At least one year; the typical Kabbage borrower has been in business 2-5 years
• Annual revenue: $50,000 minimum; the typical borrower earns $100,000 to $10 million

Kabbage doesn’t require a minimum credit score, and it doesn’t require that borrowers back their loans with personal guarantees. But you must have been in business at least a year, have annual revenue of $50,000 or more and have a business checking account or a PayPal account. Read our Kabbage review and get details on the application process.

Kabbage’s LOAN terms

• Loan amount: $2,000 to $100,000
• APR: 32% to 108%
• Loan term: 6 months
• Approval time: Same-day approval, with funding in minutes to a few days after approval

Another alternative for women entrepreneurs with poor credit is alternative lender OnDeck. Its minimum credit score for term loans is 500, although most of its borrowers are at 600 or above.

Do you qualify?

• Personal credit score: Minimum 500+ for term loans; 600+ for lines of credit; the typical OnDeck borrower has a score over 600
• Time in business: At least 1 year; median for OnDeck borrowers is 7 years
• Annual revenue: $100,000 or more in the last year for term loans and $200,000 or more for lines of credit; median for OnDeck borrowers is $600,000

Applications can be completed within 10 minutes and you can be funded in as little as 24 hours. OnDeck has looser qualifications than banks, but its loans are pricier, and a lien and personal guarantee are required. Read the details in our OnDeck review.

OnDeck’s loan terms

• Loan amount: $5,000 to $500,000
• APR: 9% to 98%
• Loan term: Repaid daily or weekly for 3 to 36 months
• Approval time: Decisions within minutes; funding in as little as 24 hours

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For women with better credit, an established business

SmartBiz and Lending Club: If you can qualify, these lenders offer lower APR. 
SmartBiz is a quicker route to SBA loans than through banks, which typically have some of the lowest rates in the market. SmartBiz’s low rates and 10-year loan term make the online lender an attractive option when you want to make major investments to grow your business.

Do you qualify?

• Personal credit score: No minimum listed, but most borrowers have at least a 600 personal FICO score or higher and the typical borrower has 750
• Time in business: At least 2 years; about 10 for typical SmartBiz borrower
• Annual revenue: No minimum listed, but most borrowers make at least $50,000. The typical borrower makes about $1 million

Although SmartBiz has streamlined the SBA loan process, it can still take a week or longer to be approved, depending on how quickly you’d be able to send at least 10 required documents.

Read our SmartBiz review and what it takes to apply.

If you don’t qualify for a SmartBiz loan, due to more rigorous SBA requirements, consider Lending Club, which offers competitive rates.

Do you qualify?

• Personal credit score: Minimum of 600; typical Lending Club borrower has 700
• Time in business: 2 years; the typical borrower has 11+ years
• Annual revenue: At least $75,000; most Lending Club borrowers make about $1 million yearly

With Lending Club, you can be funded as soon as two days. You must own 20% of the business, and the lender requires collateral for loans and lines of credit of more than $100,000. Read our Lending Club review for the lowdown on qualifications.

Lending Club’s Loan Terms

• Loan amount: $5,000 to $300,000
• APR: 8% to 32%
• Loan term: 1 – 5 years
• Approval time: Less than a week for funding

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For women with 600+ credit, in business a year

Dealstruck: The lender’s inventory-specific line of credit may be a good fit for retailers.  

Do you qualify?

• Personal credit score: Minimum of 600; typical borrowers have 660 – 700
• Time in business: At least 1 year; most Dealstruck borrowers have been in business 5-plus years
• Annual revenue: At least $12,500 per month in revenue; typically, borrowers make $1 million – $2 million

Dealstruck offers an inventory-specific line of credit that would make sense for women in retail, including newer businesses. Read our Dealstruck review and learn more about the application process.

Dealstruck’s loan terms

• Loan amount: $50,000 to $250,000
• APR: 11% to 28%
• Loan term: 6 months to 4 years
• Approval time: Prequalification in minutes, offer letter in 2 to 3 days, average of 10 days to funding

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For established women entrepreneurs with 620+ credit score

Funding Circle: Its loans are popular with franchises and retail businesses.
 

Do you qualify?

• Personal credit score: At least 620; average credit score of Funding Circle borrowers is 700
• Time in business: 2 years; most borrowers have about 10 years in business
• Annual revenue: Minimum $150,000; average annual revenue about $2 million

With loans of up to $500,000 and APRs as low as 8%, Funding Circle is a good option for established retailers. Founded by franchise owners, it is also franchise friendly. You need to have been profitable at least one of the last two years, and a personal guarantee is required. More details on qualifications in our Funding Circle review.

Funding Circle’s loan terms

• Loan amount: $25,000 to $500,000
• APR: 8% to 33%
• Loan term: 1 to 5 years
• Approval time: Prequalification in minutes, offer letter in 2 to 3 days, average of 10 days to funding

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For women-owned businesses just getting started

StreetShares: Business loans for newer businesses to grow.  

Do you qualify?

• Personal credit score: At least 600; average credit score of StreetShares borrowers is 705
• Time in business: 1 year; most borrowers have about 4-1/2 years in business
• Annual revenue: Minimum $25,000; average annual revenue is $700,000 to $800,000

If you’re a new business, raising funds is likely one of your biggest challenges. StreetShares provides loans for young businesses: It requires just one year in business and at least $25,000 in annual revenue. If you have been in business for six months and already generate $100,000 in revenue, you can also qualify.

Streetshares’ loan terms

• Loan amount: $2,000 to $100,000
• APR: 8% to 40%
• Loan term: 3, 6, 12, 18, or 36 months
• Approval time: 3 to 5 days

Women-owned businesses can also get help in the early stages through grants provided by government agencies and nonprofit organizations. Here are 10 places to look for small-business grants for women.

Evaluate small-business loans carefully

If you’re a woman entrepreneur, you won’t run out of financing options for your small business. There are plenty of choices, depending on your financial situation and needs. Do your homework and check out your options on NerdWallet’s small-business loans comparison tool:

Compare business loans

 

Benjamin Pimentel is a staff writer at NerdWallet, a personal finance website. Email: bpimentel@nerdwallet.com. Twitter: @benpimentel.

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

This post was updated. The post originally was published on June 23, 2015.

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Image via iStock.

SmartBiz documents

These are the main documents SmartBiz applicants will be asked to submit. SmartBiz could request additional documents depending on the type of business, personal finances and other factors.

• Business tax returns (last two years)
• Personal tax returns (last two years)
• Evidence of business property insurance
• Evidence of general liability insurance, such as a homeowner’s insurance policy
• Business entity certifications (like articles of incorporation)
• Business assets list
• Corporate resolution to borrow
• Photo of driver’s license
• Deeds, title policies or lease agreements for all real estate owned or used by the business. Lease agreement would include a subordination release from your landlord.
• Home mortgage statement

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET KABBAGE’S MINIMUM QUALIFICATIONS.

• Have you been in business for at least a year?
• Does your business generate at least $50,000 in annual revenue?
• Do you have a checking account or use a bookkeeping software or payment platform?

If you answered “yes” to these questions, visit Kabbage’s secure site:   If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET OnDeck’s MINIMUM QUALIFICATIONS.

• Have you been in business for at least a year?
• Is your personal credit score 500 or higher?
• Does your business generate at least $100,000 in annual revenue?
• Were you free of personal bankruptcy in the last two years?

If you answered “yes” to these questions, visit OnDeck’s secure site:   If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET LENDING CLUB’S MINIMUM QUALIFICATIONS.

• Have you been in business for at least two years?
• Does your business generate $75,000 in annual revenue?
• Is your personal credit score 600 or more?

If you answered “yes” to all, visit Lending Club’s secure site: If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET SMARTBIZ’S MINIMUM QUALIFICATIONS.

• Have you been in business for at least two years?
• Does your business make $50,000 a year?
• Is your personal credit score 600 or higher?
• Were you free of personal bankruptcy in the last three years?

If you answered “yes” to all, visit SmartBiz’s secure site: If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET Funding Circle’s MINIMUM QUALIFICATIONS.

• Have you been in business for at least two years?
• Does your business generate $150,000 in annual revenue?
• Is your personal credit score 620 or higher?
• Have you been profitable at least one of the last two years?

If you answered “yes” to all, visit Funding Circle’s secure site:   If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET Dealstruck’s MINIMUM QUALIFICATIONS.

• Have you been in business for at least a year?
• Are you profitable?
• Does your business make $150,000 in annual revenue?
• Is your personal credit score 600 or higher?

If you answered “yes” to these questions, visit Dealstruck’s secure site:   If you answered “no” to any of these questions, let us help you find a lender that’s a better fit:

BEFORE APPLYING, DOUBLE CHECK THAT YOU MEET StreetShares’ MINIMUM QUALIFICATIONS.

• Is your personal credit score at least 600?
• Does your business make at least $25,000 in annual revenue?
• Have you been in business at least a year?

If you answered “yes,” visit StreetShares’ secure site:   If you answered “no” to any of these questions, let us help you find a lender that’s a better fit: