Steps to Apply:
1
Quick Application:
Complete our simple online form and receive swift approvals.
2
Explore Choices:
Compare various options to find the ideal solution for your needs.
3
Personalize Your Terms:
​Choose the options that best suit your business objectives.
4
Get Funding:
Access funds within a few business days for most programs.
Get the Best Small Business Loan for Women
Empowering women entrepreneurs with customized loan solutions to grow their businesses. We connect you with the best financing options to help you achieve your goals.
Need help? Reach out to us:
Email: CS@merchantprofunding.com
Small Business Loans for Women
Women-owned businesses have traditionally faced challenges when applying for business loans. This is often because they start their companies with fewer financial advantages compared to their male counterparts. These advantages include higher credit scores, greater net worth, and financial support from others. According to the National Association of Women Business Owners, there are 11.6 million women-owned businesses in the United States that generate $1.7 trillion in annual revenues and employ over 9 million people. However, the financing industry's historical bias against women-owned businesses could hinder economic growth.
Thankfully, companies like Merchant Pro Funding (MPF) help level the playing field by offering access to online lenders with specialized small business loans for women. These options provide women entrepreneurs with the financial resources they need to overcome systemic barriers and reach their potential.
In this guide, we will answer the following questions and more:
What Are Small Business Loans
for Women?
Small business loans for women aren't a specific type of loan exclusively for female entrepreneurs. Instead, these loans are the result of lenders' efforts to address systemic challenges that women business owners face. Women-owned businesses often struggle to secure financing due to factors like limited credit history, lower working capital, and industry stereotypes.
At MPF, our network of lenders looks beyond these limitations to assign loan amounts, rates, and terms that are aligned with the borrower's actual performance and potential rather than rigid traditional criteria.
Max Funding Amount:
$1K - $10M
Factor Rates:
Starting at Prime + 2.75%
Term:
3 months - 25 years
Speed:
Days to weeks
The primary purpose of these loans is to provide women-owned businesses access to financial products that may have previously been out of reach. Women entrepreneurs often start their businesses with less personal funding and operating capital than their male counterparts. This can lead to lower credit scores or limited growth potential.
​​By partnering with a network of online lenders, MPF ensures that women business owners can access tailored financial solutions. These loans include:
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Bad Credit Business Loans
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Business Line of Credit
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Business Term Loans
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Equipment Financing
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Invoice/Receivables Factoring
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Merchant Cash Advance
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Revenue-Based Financing
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SBA Loans
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Working Capital Loans
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Borrowers can potentially secure funding up to $10 million with terms extending up to 25 years.
​
Recent Facts, Figures & Reports on Women-Owned Businesses
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Access to capital remains one of the largest barriers for women entrepreneurs. (Source: National Women's Business Council)
Women start businesses with an average capital of $75,000—half the average amount for businesses owned by men. (Source: National Women's Business Council)
74% of women-owned businesses rely on personal savings or money from friends and family to fund operations. (Source: 2023 Small Business Credit Survey)
As of 2023, 39% of all U.S. businesses are women-owned—a 13.6% increase since 2012. (Source: 2023 Impact of Women-Owned Businesses Report)
How Do Small Business Loans
for Women Work?
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Little or Poor Credit History: Women have historically faced challenges with credit systems. Many online lenders, however, have lower credit score requirements, making it easier for female entrepreneurs to qualify.
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Low Working Capital/No Collateral: Many women do not invest as much of their personal funds into their businesses compared to men. MPF's lenders consider the overall health of the business rather than focusing solely on personal contributions or collateral.
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Industry/Niche: Female entrepreneurs often operate in industries that are stereotyped as "low-growth" or "risky," such as hospitality or retail. MPF lenders assess cash flow and performance rather than making decisions based on industry stereotypes.
Advantages of Small Business Loans for Women
Disadvantages of Small Business Loans for Women
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Higher Rates & Fees: Borrowers with lower credit scores may face higher costs.
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Collateral Requirements: Some loans might still require collateral.
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Shorter Terms for High-Risk Borrowers: Certain options may come with shorter terms and higher repayments.
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Experience Requirements: Some loan options require at least one year in business.
​​
Business Loan Product Comparison:
-
Loan Types
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Max Amounts
-
Rates
-
Speed
Merchant Cash
Advances
$7.5K - $1M
​Starting at 1-6% p/mo
1-2 business days
Receivables/Invoice Financing
$10K - $10M
Starting at 1% p/mo
1-2 week
SBA Loan
​
$50K - $10M
Starting at Prime + 2.75%
8-12 weeks
Equipment
Financing
Up to $5M per piece Starting at 3.5% (SBA)
3-10+ business days
Business
Term Loan:
$10K - $5M
Starting at 1-4% p/mo
1-3 business days
Revenue-Based Business Loans
$10K - $5M
Starting at 1-6% p/mo
1-2 business days
Business
Line of Credit
$1K - $250K
Starting at 1% p/mo
1-3 business days
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Step 1: Consider Your Needs Research each financial product to determine the best fit for your business's cash flow and growth goals. Seasonal businesses or industries prone to revenue dips may require more flexible repayment structures.
​​
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Step 2: Gather Your Documents. You may need:
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Voided business check
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Bank statements (3 Months)
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Credit card processing statements (3 Months)
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Accounts receivable aging report
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Accounts payable report
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Driver's license
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​
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Step 3: Complete Application Submit an application online or via phone, including the necessary documentation and desired funding amount.
​
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Step 4: Speak to a Representative An MPF representative will explain the repayment structure, rates, and terms of your available options.
​
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Step 5: Receive Approval Once approved, funds can appear in your account within 1-2 business days for most products. What If I'm Declined for Women-Owned Business Loans? If your business doesn't meet loan criteria, alternative options such as business credit cards, personal loans, or assistance from credit unions may be viable. Additionally, credit repair services can help improve your eligibility for future funding opportunities.
How to Apply for Women-Owned Business Loans
If your business doesn't meet loan criteria, alternative options such as business credit cards, personal loans, or assistance from credit unions may be viable. Additionally, credit repair services can help improve your eligibility for future funding opportunities.
What If I'm Declined for Women-Owned Business Loans?
Conclusion
Small business loans for women are crucial tools for overcoming systemic challenges and ensuring equal opportunities for female entrepreneurs. By partnering with lenders who focus on cash flow and performance, MPF provides women-owned businesses with tailored financial solutions that pave the way for growth and success.
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