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3 Startup Loan Options for Women With Poor Credit

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(Credit: 3 Startup Loan Options for Women With Poor Credit) 3 Startup Loan Options for Women With Poor Credit
February 28
11:12 AM 2020

Hey girl, do not let those financial hardships turn down your enthusiasm for your dream startup. No matter how bad is your credit score, there are still a plethora of loan options available for your assistance. All you need is to search for them thoroughly and with an open mind. Gladly, around one in five startups are now owned by women. So, do not hold yourself back because of a shortage of money as where there is a will, there is a way!

Small business loan options are a great way out for women to go ahead with your dream projects without much hindrance. Creditors, loan companies and even, bank institutions have distinct financial loans for women with a low credit score. Also, there are government-approved SBA loans for women entrepreneurs to obtain financial freedom and go ahead with their venture.

Let's look at the three most preferred startup loan options for women with a poor credit rating: 

1. Micro-loans: One of the best options for the women entrepreneurs who seek a small capital loans and do not want to for larger loans for their business. To jump-start your small venture, you can opt for micro-loans. You can get essential inventory and supplies as per the business demand, without putting much burden on your overall budget. These loans do not require a proper revenue history and are ideal for the home-based women businesses or freelancers.

Check out the benefits of micro loans here:

  • No need of the detailed bank statements. 

  • Loan usually gets approved in a day or even faster. 

  • These loans do not require waiting in the queues. 

  • No requirement of specifying the reason for attaining a micro-loan. 

  • Cash advance is directly disbursed into bank account of the borrower. 

2. Online loans by Alternative lenders: You will never be disappointed by the online lenders when all your requests for SBA is turned down. These loans usually last between 3 to 18 months as for short term use and for two to five years for medium-term use. This online option is ideal for the women who seek quick financial facilitation with an average or bad credit score. The best part about these loans is the prompt response from the lenders. However, there might not be all the benefits as in government loans, but these loans are available for a woman who needs a quick-fix loan.

Here are some major venefits of online loans: 

  • 24/7 availability 

  • No requirement for physical submissions

  • Instant small cash loans or advance readily available

  • Minimal requirement of the document

  • Fast process with quick disbursal

  • Ideal for women with bad credit history

3. Lines of Credit: For the women entrepreneurs, who wish to use their loan flexibly can opt for business lines of credit. This type of credit is like a specific limit you get access to, but it is your will how much you intend to use. The best part is you have to pay interest on the funds you use, unlike other loans. You can get facilitated with a loan in various loans as revenue cycles of almost every business are irregular. So, lines of credit can keep your business finances on track and you would not end up with restricted budgets. Attaining this credit limit is possible, after being in the business for 6 months to 2 years, depending upon the loan company you approach.

Here are some benefits of lines of credit: 

  • Business lines of credit saves the borrower from time to time problems of cash flow in the startup

  • Lines of credit are a highly flexible alternative for the traditional loans. 

  • Ideal for occasional financial problems. 

  • This does not cause extra when one use a specific amount of credit and this is one of the less expensive quick-fixes available in the market .

  • It is meant for businesses with low margins. 

Final thoughts

It is quite easy to find a loan, but picking up the right one can be difficult. Do not decide anything before you get into the pros and cons of each and every loan option. Chances are high you have to make a choice between equity and debt financing. So, if you wish to have full control over your business, then you can go for external loans by paying interest. Whereas, if you do not wish to pay those hefty rates of interest, then go for equity options you have. The main idea is to understand the features of different companies to find the most lucrative option for you.

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