Financing is a major pain point for small-business owners, and if you’re a woman, your choices might be even more limited. According to the Senate Committee on Small Business and Entrepreneurship, women receive $1 of every $23 of small-business financing. There are small-business loans to help women-led ventures flourish, but toss in a credit history that includes a few wrong turns, and those female business owners often struggle to access the capital they need.
However, there are alternative lenders that help owners with poor credit establish and grow their businesses. These lenders generally have fast application processes and fund borrowers quickly — but at a cost. Alternative lenders charge a wide range of APRs, sometimes upward of 100%.
Whether your business is just getting started or ramping up for its busy season, here are five alternative lenders that can help with your financing needs, even if you have a less-than-stellar credit score.
For women starting a business
Banks’ small-business lending has yet to bounce back to pre-recession levels, making access to startup capital from traditional lenders scarce at best. Because of this, if you have a poor credit history, funding your venture with a credit card might be your best option.
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For growing women-owned businesses
As your business starts to grow, you might want capital to purchase more inventory, make renovations or support increased labor costs. OnDeck offers term loans and a business line of credit that can help cover those expenses, and the lender’s looser requirements make a bad credit score less likely to affect your chances of qualifying. An added bonus? The application process is quick and simple, and funds hit your account in as little as 24 hours.