Best Small Business Loans for Women

  • Application process takes less than 2 minutes
  • Highest approval rates
  • Secure funding from $10K to $750K
  • Interest rates as low as 7%
  • Flexible payment schedule tailored to your needs
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How Women-Owned Businesses Can Get a Loan in 2022: The Definitive Guide

Small Business Loans for Women
Clarify Capital is dedicated to helping women entrepreneurs live the American dream.

In this guide to business loans for women, you'll learn:

  • Best loan options based on specific needs for capital
  • What you need to qualify for a loan
  • How to speed up the funding process
  • How to get the lowest interest rate possible
  • Answers to commonly asked lending questions by women

So if you want to get funded quickly, you'll love this guide.

Let's get started.

The Four Best Business Loan Options for Women

With a myriad of financing products offered by alternative lenders, borrowing working capital can feel overwhelming. We’ve simplified the process and outlined the best loan types based on the 10,000+ women-owned businesses that have gotten approved on our lending marketplace.

1. Short Term Loans for Women

Best for women who need fast funding, have either good or bad credit, with no collateral requirements.

A term loan is a traditional business loan. You borrow a fixed amount of money that you pay back over time based on a fixed interest rate. When most founders think of a business loan, they are thinking of a short term loan. Any type of women-owned company can qualify for a term loan. There is no collateral needed, the credit score requirements are low, and the fundraising process is quick.

Advantages of short term loans:

  • No prepayment penalty
  • Both good and bad credit scores can apply
  • Fixed payment structure and APR
  • Quick funding
  • No collateral or downpayment needed
  • Any type of women-owned business can get approved

Apply for Short Term Loan

2. Business Line of Credit for Women

Best for women who want more flexibility on how to use the funds for operating expenses.

Similar to how a credit card works, with a business line of credit you get approved or a fixed amount of working capital. You can withdraw funds for operating expenses whenever you need and only pay interest on the amount of capital you have utilized.

Advantages of business of credit:

  • Competitive interest rates
  • Builds up your credit score
  • Women with a bad credit rating can get approved
  • You only pay interest on the capital you use
  • Funds are always available when needed
  • No prepayment penalty

Apply for Business Line of Credit

3. Invoice Factoring for Women

Best for women who want to use unpaid invoices as collateral without any credit score requirements.

Also known as invoice financing, factoring allows women-owned companies to use outstanding invoices as collateral. It’s a flexible lending option to get money upfront for unpaid receivables. Lenders on our marketplace provide you up to 100% of the invoice value. There are no credit score requirements and time to get funded is fast.

Advantages of invoice factoring:

  • Invoices serve as the collateral
  • Your personal credit rating is not a factor in getting approved
  • Instant access to working capital without waiting for invoices to get paid

Apply for Invoice Factoring

4. SBA Loans for Women

Best for women who have great credit score and can provide some collateral.

The Small Business Administration offers 7(a) and Microloan programs that partially guarantees a loan from approved lenders for women-owned companies. The interest rates on SBA loans are competitive, but due to the lengthy application process and requirements, most women prefer to get funding via a term loan or line of credit.

Advantages of SBA loans:

  • Up to 85% of the loan amount is guaranteed by the SBA
  • Longer term length as compared to other types of loans
  • Competitive interest rates

Apply for SBA Loan

Benefits for Women of Getting Funded by Clarify Capital

Small Business Loans for Women
10,000+ women-owned businesses trust Clarify

There are more than 12.1 million companies owned by women in the United States, employing over 10 million people, and generating $1.8 trillion in sales as of 2022. Our network of lenders, underwriters, and financial advisors help women achieve the American dream with the operating capital they need to flourish.

1. Quick application and approval process

Running a business is complicated enough, getting a loan shouldn’t be. Small business loans through Clarify Capital are approved and funded within 24 hours. Our dedicated advisors guide you through our simple process and do all the paperwork for you.

2. High approval rates

We take pride in having the highest approval rates in the lending industry. While traditional banks can take weeks, our underwriters work with you to get approval instantly. Whether your personal credit rating is good or bad, our team works diligently to get you approved.

3. Lowest interest rates

When lenders compete, you win. Our marketplace of 75+ alternative lenders offer competitive loan rates to women-owned businesses and underserved minorities. APRs on our network are as low as 7% with no prepayment penalties.

4. Transparent process, no hidden fees

We founded Clarify Capital with a singular mission: to help business owners succeed. A key part of that mission is providing complete transparency. There are no hidden fees or terms you can’t understand. What you see is what you get. We walk you through your loan offers to help you pick the best one based on your specific needs.

5. Flexible payment terms

We offer loan term lengths up to 2 years and tailor the payment plan based on your cashflow. The most important thing to us is seeing women-owned companies achieve success. So we work with you to customize a plan that aligns with your business goals.

6. Minimal documentation needed

Unlike traditional banks and commercial lenders, we don’t require endless amounts of business and financial documents to get you approved. All you need is 3 months of recent bank statements. We handle all the paperwork so you can focus on running your company.

7. No personal guarantee needed

There is no collateral needed to secure financing from Clarify Capital. Unsecured business loans for women do not require a personal guarantee. That further lowers your risk as a founder.

8. Tax deductible

Any interest that you pay on the principle loan amount is tax deductible. This reduces your overall cost of securing a loan and improves your cashflow. Whether you decide to go with a term loan or business line of credit, you can safety deduct any interest paid.

Apply for a Business Loan

Qualification Requirements to Get Instant Approval

When you choose Clarify, we consider you family — and work with you to get approved. We have streamlined the fundraising process for women-owned businesses to three simple things. Here is what you need to be eligible for a business loan:

1. Time in business

Your company should have been operational for at least six months. How long you’ve been in business is a risk assessment signal for lenders. So the longer you’ve been in business, the lower the risk for alternative lenders to give you a working capital loan.

2. Monthly revenue

Your cashflow helps us decide how much capital your business qualifies for. The minimum revenue we suggest your business should be making is $10,000 per month.

3. Credit score

We approve women for a business loan with both good and bad credit score. Your credit rating is a factor in the interest rates and term length offered on your loan package. We recommend you have a credit score of at least 550.

Prequalify for a Business Loan

Takes less than 2 minutes and doesn't affect your credit score.

How to Apply for a Business Loan as a Woman Entrepreneur

Business Loan for Female Minorities

The speed of the application process is a top priority for women-owned businesses. We take pride in having the quickest funding process — all you have to do is fill out our online application. It takes less than a couple of minutes.

Here is a complete overview of how our simple process works:

Step 1: Identify how much you need to borrow

While we’d all love to get $50 billion dollars, the best approach to figure out how much to borrow is understanding your business goals. Write down how much capital you need to pay for expenses to sustain and grow your company. This will help you borrow the right amount and lower your costs.

Step 2: Apply online

Once you apply for a business loan with us, you’ll wonder why can’t everything in life be so simple. It’s the core reason why over 10,000 women-owned businesses have chosen Clarify Capital as their lending partner.

Step 3: Get your documents ready

Once you’ve applied online, our team will reach out to you to better understand your business. All you need is three months of bank statements to verify your cashflow. That’s it. There is no lengthly paperwork to fill out — we’ve got you covered.

Step 4: Go over loan offers with your Clarify advisor

We’ll walk you through all your available options to help you make a better decision. There are no hidden fees or mumbo-jumbo to figure out. We keep it fully transparent.

Apply for a Business Loan

How Women-Owned Businesses Use Financing

The key to running a successful and sustainable business is having enough working capital to handle operations. Here are the top ways to for women to utilize their funding from Clarify:

  • check  Hiring new employees, training & education
  • check  Material purchases
  • check  Advertising & marketing
  • check  Equipment purchases
  • check  Operating expenses
  • check  Refinance existing debt
  • check  Overcoming unanticipated business expenses
  • check  Opening a new location
  • check  Short-term operational costs
  • check  Store improvements / renovations
  • check  Payroll & taxes
  • check  Growth opportunities
  • check  Emergency repairs
  • check  Gap in accounts receivables vs. payables
  • check  Coronavirus related expenses
  • check  Pandemic assistance

FAQ about Business Loans for Women

We strive to make getting a loan simple and transparent. Here are the most frequent questions female-owned businesses ask our advisors before getting funded:

How do you qualify for a small business loan?

There are three simple requirements to qualify for a business loan: your time in business, personal credit score, and average monthly revenue. Clarify’s lender network offers the highest approval rates for women.

What credit score do I need to get approved?

You need to have a credit score of at least 550 to get approved. The higher your personal credit rating, the better your loan terms are from banks and alternative lenders.

How long does it take to get approved and funded?

You can apply, get approved, and have money in the account in as little as 24 hours. You can speed up the already simple process by having 3 months of bank statements handy for cashflow verification.

Do I need a downpayment to get a business loan?

No, you don’t need a downpayment to get a term loan or line of credit.

Are business loan payments tax deductible?

Yes. You can safely deduct any interest paid on your principle loan amount when you file your business taxes. It further reduces your costs of getting financing.

How much working capital can I qualify for?

The amount of capital you qualify for depends on a few factors including your average monthly revenue. When you apply with Clarify, you get multiple offers from lenders. Our team helps you decide on a loan that best fits your business objectives.

Do I need collateral for a business loan?

No, you don’t need any collateral or personal guarantee to get approved for a business loan with Clarify.

Small Business Loans for Women with Bad Credit

"I have worked with Clarify Capital to secure multiple loans for my company of the past few years. They are professional, trustworthy and efficient in all of their work. They overcame obstacles to get my company the financing I needed to hire more employees and grow sales. The capital I borrowed also allows me to buy raw materials at a discount from suppliers, improving my return on investment."

Toy Manufacturer
New Jersey
5-star Trustpilot reviews5-star Trustpilot ratingClarify Capital is rated 10/10 based on 139 reviews on Trustpilot
Ready To Grow Your Business?

Women-owned businesses can get instant pre-approval and have money in the account within as little as 1 day. Prequalify without affecting your credit! Application process takes less than 2 minutes.