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Small-Business Loans for Women With Bad Credit 2018

June 7, 2018
Small Business, Small Business Loans
Business Loans for Women With Bad Credit
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Being a woman in the small-business world can be tough, especially when it comes to finances. According to the U.S. Small Business Administration, 30% of its 7(a) small-business loan dollars in 2016 went to businesses owned by women.

The good news is that female entrepreneurs have financing options; the bad is that having flaws in your credit history will impede your chances of approval. Alternative lenders work with borrowers who have bad credit, generally have fast application processes and are quick to send funding, but their annual percentage rates vary widely, sometimes reaching upward of 100%.

Here are some options that can help with your financing needs, even if you have a less-than-stellar credit score.

Summary of options: Small-business loans for women with bad credit

In the table below, scroll right to see all the lenders.
Funding optionsKabbage
Kabbage_Logo_150x40
Fundbox
fundbox
Fundbox line of credit
fundbox
OnDeck
ondeck
BlueVine
bluevine
StreetShares
Street Shares
Best forWorking capitalBusinesses with unpaid customer invoicesFast cash, working capitalFast cashFinancing large unpaid customer invoicesLower rates
Loan details
Loan amount$2,000 - $250,000$1,000 - $100,000$1,000 - $100,000$5,000 - $500,000$20,000 to $5 million$2,000 to $150,000; Up to $2 million for specialty products
APR24% - 99%10.1% - 78.6%10.1% - 79.8%16.7% - 99.4% as of Q1 201815% - 68%9% - 40%; 1% to 5.5% for specialty products
Minimum qualifications
Personal credit scoreNot required
Not requiredNot required500530600
Annual revenue$50,000Not required$50,000$100,000$100,000$75,000
Time in business1 yearNot required3 months1 year3 months1 year
Apply now at Kabbage
Apply now at Fundbox
Apply now at Fundbox
Apply now at OnDeck
Apply now at BlueVine
Apply now at StreetShares

For more details:

If your personal credit score is less than 500

If your personal credit score is from 500 to 600

If your personal credit score is greater than 600

If you own a startup

If your personal credit score is less than 500

Line of credit: Unlike other lenders, Kabbage doesn’t have a minimum credit score requirement. The company offers a line of credit up to $250,000.

  • Pro: Kabbage weighs accounting, banking and data about online sales more heavily than personal credit score
  • Con: High annual percentage rates compared with other options
  • Loan amount: $2,000 to $250,000.
  • APR: 24% to 99%.
  • Loan term: 6 or 12 months.
  • Funding time: A few minutes to several days.
  • Read our Kabbage review.
Apply now at Kabbage

Line of credit: Fundbox also doesn’t require a minimum credit score. You will need at least $50,000 annual revenue and a minimum three months in business to qualify.

  • Pros: You can qualify with bad credit and you can gain access to funds as fast as the next business day; less expensive than Kabbage
  • Cons: Funding tops out at $100,000; it’s only suitable for short-term financing, as lines of credit are repaid weekly up to 12 weeks

Line of Credit

  • Loan amount: $1,000 to $100,000
  • APR: 10.1% to 79.8%
  • Loan term: 12 weeks
  • Funding time: As fast as next business day
  • Read our Fundbox review
Apply now At Fundbox

Invoice financing: If you need help covering unpaid customer invoices, Fundbox’s invoice financing option will advance 100% of accounts that are 60 to 90 days outstanding.

  • Pro: No personal credit score or minimum revenue required to qualify
  • Cons: Can qualify for only up to $100,000; high APR

Invoice financing

  • Loan amount: $1,000 to $100,000
  • APR: 10.1% to 68.7% for 12 weeks; 11.4% to 78.6% for 24 weeks
  • Loan term: Equal repayments over a 12- or 24-week period
  • Funding time: As fast as the next business day
  • Read our Fundbox review
Apply now at Fundbox


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If your personal credit score is 500 to 600

Term loan: OnDeck requires only a 500 credit score to qualify for its term loans, though the lower your score, the higher the interest rate.

  • Pro: Loan may be funded within 24 hours
  • Con: No benefit to paying the loan back early

Term Loan

  • Loan amount: $5,000 to $500,000.
  • APR: 16.7% to 99.4%, as of Q1 2018
  • Loan term: Repaid daily or weekly for 3 to 36 months.
  • Funding time: As fast as 24 hours but typically a few days.
  • Read our OnDeck review.

*APRs change quarterly

Apply now at OnDeck

Invoice factoring: For outstanding invoices beyond what Fundbox can cover, BlueVine offers invoice factoring loans from $20,000 to $5 million.

  • Pro: Access to funds within 24 hours
  • Con: High cost of borrowing

Invoice Factoring

  • Loan amount: $20,000 to $5 million.
  • APR: 15% to 68%.
  • Loan term: 1 to 13 weeks
  • Funding time: 1 to 3 days.
  • Read our BlueVine review.
Apply now at BlueVine


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If your personal credit score is greater than 600

Term loan and line of credit: StreetShares offers term loans and lines of credit with competitive rates.

  • Pro: Only need $75,000 annual revenue to qualify
  • Con: Funding cap at 20% of your annual revenue
  • Loan amount: $2,000 to $250,000 for term loans; $5,000 to $250,000 for standard line of credit; Up to $2 million for invoice factoring and government contract financing
  • APR: 9% to 40%; 1% to 5.5% for select products
  • Loan term: 3 to 36 months
  • Funding time: 1 to 5 days
  • Read our StreetShares review
Apply now at StreetShares


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If you own a startup

Startups face unique challenges. Many lenders are not keen on financing new companies that don’t have a track record, but other sources of startup funding can help get you going.

Find and compare the best small-business loans

If you’re still on the hunt for small-business loan options, NerdWallet has compiled a list of loans to help meet business owners’ needs. We’ve gauged them on trustworthiness, market scope and user experience, and sorted them into categories based on revenue and the length of time you’ve been in business.

 

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