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Business Loans for Women with Bad Credit
While business loans are readily available to all business owners regardless of gender or age group, having bad credit presents an exceptional hurdle for most people. When you have bad credit, it’s much more difficult to qualify for the funds you need. And even if you do qualify, you might need to pay an unreasonably high interest rate to make up for the extra risk.
2 lenders for women business owners with bad credit
Certain lenders make the loan process slightly easier for women entrepreneurs with bad credit, however. By loosening requirements and considering other factors outside of your credit score during the underwriting process, these lenders offer more business loans for women with bad credit than most.
If you’re a woman with bad credit who’s ready to strike out on her own, consider these lenders:
StreetShares is another lender that’s often willing to extend business loans to women with bad credit. You can qualify for either a traditional loan or a line of credit you can borrow against, both with annual percentage rates between 9% and 40%.
Most loans funded through Street Shares are for between $2,000 and $100,000, although the amount you can borrow will depend on your creditworthiness and cash flow. Generally speaking, Street Shares prefers to loan money to female-led businesses that have been open for at least one year.
Note: StreetShares is only offering Paycheck Protection Loans to businesses at the moment and is not originating term loans.
Non-credit factors some lenders consider
If you have poor credit but still need a business loan, don’t despair. Some of the lenders on this list will consider factors outside your credit score when determining eligibility.
According to small business lender Fundera, some banks and online lenders will consider the following factors in addition to your credit score:
- Annual revenue: Some lenders consider how much revenue your business brings in each year when determining your eligibility for a loan. If your credit is bad but your business is solvent, your ability to qualify for a business loan becomes much more likely.
- Profitability: In addition to your annual revenue, lenders will want to see real profits as well. If your revenue is okay but your expenses are considerably lower, this will work in your favor when it comes to qualifying for a business loan.
- Debt: A large debt load tells lenders you might struggle to repay your loan, while relatively low debt tells them you’re smart with your business funds. Also, when it comes to business loans for bad credit, lenders want to know who else you’ve worked with. “If you’re currently paying back a small business loan, you might have trouble qualifying for a second loan,” notes Fundera.