The Best Small Business Loans and Funding Options for Women in 2020

Today, women own four out of 10 businesses in the U.S., employing 9.2 million people and generating $1.8 trillion in revenue annually. 

According to the most recent American Express report, from 2007 to 2018 most women, especially minorities, have started their own business out of necessity. A reality that has only grown stronger due to the current economic turmoil and today women have to face more economic hardships than before. 

And yet - they are still not getting equal and fair access to small business loans and funding options. In fact, a recent Federal Reserve report found that women were less likely to be approved or receive a full amount of small business funding in comparison to men.

We know the quest to access capital can be challenging. So we've decided to provide you with some useful information about some of the different types of small business loans and funding options for women out there. 

Before you apply to them, consider looking into your business’s financial profile, credit rating, financing needs, and overall goals, they’ll rail you in the right direction. 

Small business loans and funding options for women: 

Working capital: If you need a solution to cover the immediate costs of your business, this is it. This type of small business funding is designed to cover short-term day to day expenses. For example, paying your employees on time or covering your leasing costs. Working capital allows you to continue your daily operations without tapping into your cash flow.

Inventory or equipment loans:  These types of loans can be used to purchase equipment or supplies for your business. Inventory loans are best suited for retail stores that sell goods, for example. Equipment loans could also help you out if you're seeking to purchase technology to convert to an online store or manufacturing tools to produce more in shorter spans of time. It can be possible to borrow up to 100%, but most lenders require a type of down payment.