Best Small-Business Loans for Women in 2016

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 include your revenue and how long you’ve been in business.

Jump to our recommendations:

• If you have poor credit
• If your business is strong and you want to expand
• If you’re in retail and have been in business one to two years
• If your business is newer

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.

For women who have poor credit:
Kabbage, OnDeck

OnDeck and Kabbage are two lenders that offer loans to women who have less-than-stellar personal and business 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.

Loan amount: $5,000 to $500,000 APR: 16% 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 Read our OnDeck review.

Get started at OnDeck     Before you apply for an OnDeck loan, find out whether you meet the lender’s minimum qualifications. At least one owner must have a minimum personal credit score of 500 for term loans; a majority owner must have a minimum personal credit score of 600 for lines of credit In business for at least one year At least $100,000 in revenue during the last year for term loans; at least $200,000 in revenue during the last year for lines of credit No bankruptcies in the last two years Provide a personal guarantee Provide a business tax ID, three months of credit card statements, one to three months of bank statements, a Social Security number and a driver’s license number and state of issue Do I qualify? ▾

Loan amount: $2,000 to $100,000 APR: 32% to 108% Loan term: 6 months Approval time: A few minutes to several days Read our Kabbage review.

Get started at Kabbage     Before you apply for a Kabbage loan, find out whether you meet the minimum qualifications. In business for at least one year No minimum personal credit score Annual revenue of at least $50,000 A business checking or PayPal account Do I qualify? ▾

[back to the top]

For established businesses that want to expand: SmartBiz, Lending Club

SmartBiz is a quicker alternative to banks offering SBA loans, which typically have some of the lowest rates in the market. The low rates and the 10-year loan term make SmartBiz an attractive option when you want to make major investments to grow your business.

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

Loan amount: $30,000 to $350,000 APR: 7% to 8% Loan term: 10 years Approval time: Within seven days of submitting application Read our SmartBiz review.

Get started at SmartBiz     Before you apply for a SmartBiz loan, find out whether you meet the lender’s minimum qualifications. No minimum credit score, but most borrowers have at least 600 At least 2 years in business No minimum revenue requirement, but most borrowers report $50,000 to $5 million Each principal owner must personally guarantee loan No outstanding tax liens No bankruptcies or foreclosures in last three years No recent charge-offs or settlements Must be current on government-related loans Do I qualify? ▾

 

Loan amount: $5,000 to $300,000 APR: 8% to 32% Loan term: 1 – 5 years Approval time: Less than a week for funding Read our Lending Club review.

Get started at Lending Club     Before you apply for a Lending Club loan, find out whether you meet the minimum qualifications. In business for at least two years At least $75,000 in annual revenue Own at least 20% of the business 600+ personal credit score with no recent bankruptcies or tax liens Provide collateral for loans and lines of credit of more than $100,000 Lending Club is currently unavailable to borrowers in Iowa, Idaho and Maine. Do I qualify? ▾

[back to the top]

For women-owned businesses in retail: Dealstruck, Funding Circle

Retail has one of the highest concentrations of women-owned businesses, according to a 2015 report from American Express. And buying inventory requires cash. Dealstruck offers an inventory-specific line of credit that would make sense for retailers, including newer businesses. Funding Circle is a good option for established retailers, retailers that have been in business for at least two years and franchises.

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 Read our Dealstruck review and learn more about the application process.

Get started at Dealstruck     Before you apply for a Dealstruck loan, find out whether you meet the lender’s minimum qualifications. 600+ personal credit score At least one year in business At least $12,500/month in revenue Profitable Personal guarantee and a lien on business assets required Will need to submit at least three months of business banking statements, two years of business tax returns and one year of personal tax returns Do I qualify? ▾

 

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 Read our Funding Circle review.

Get started at Funding Circle     Before you apply for a Funding Circle loan, find out whether you meet the lender’s minimum qualifications. Personal credit score of at least 620, but the average credit score of funded borrowers is 700 At least two years in business Minimum $150,000 in annual revenue Profitable at least one of the last two years No bankruptcy in the last seven years Personal guarantee required Do I qualify? ▾

[back to the top]

For women with newer businesses:
StreetShares

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.

Loan amount: $2,000 to $100,000 APR: 8% to 40% Loan term: 3 to 36 months Approval time: 1 to 5 days Read our StreetShares review.

Get started at StreetShares     Before you apply for a StreetShares loan, find out whether you meet the lender’s minimum qualifications. At least 600 personal credit score In business for at least one year At least $25,000 in annual revenue Do I qualify? ▾

Note that credit cards are another choice for funding a startup. To help decide which better suits your needs, see our comparison of Prosper versus credit cards. And shop around for options using NerdWallet’s business credit cards tool.
[back to the top]

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. When shopping for loans, be sure to compare APR, the true cost of borrowing including all fees.  NerdWallet’s small-business loans comparison tool can help:

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 article was updated May 12, 2016. It originally was published on June 23, 2015.