Women in Business: Getting Startup Funds (Even with Bad Credit)

Good news: Funding for women planning to start up a small business is readily available.

Bad news: It’s not that easy to get.

Most of these funding sources for women business owners come in the form of loans, and this can be very tough to avail of especially for those with a bad credit standing. Fortunately however there are still ways through which women can avail of these resources even with their bad credit. And one effective way is by being able to prove that you have what it takes to run the business.

The Peer-to-Peer Lending System

The peer-to-peer lending system is ideal for those women who only need a small amount of money (less than $10,000) to get started with the business. The process requires you to talk about your business and your qualifications to manage and run it. Prospective investors will look into your story, check its credibility, and decide on how much percentage of the money will they offer for a loan. Here, having a low credit means higher risk, so your interest rate will be higher as well.

Soliciting help from family and friends can be formally done through peer-to-peer lending. Here, they can lend you some funds that you can use to start up your business while they earn interest from the transaction, which will all be done under an intermediary online site.

The Venture Capitalists and Angel Investors

Venture capitalists and angel investors are those individuals or organizations that are ready to give you the financial capital that you need to start up your business, but they will need to have some control over a portion of your company and its profits. This system is ideal for those looking for a significantly large amount of money like around $100,000 to $1 million.

These individuals or organizations would not be bothered about your personal credit rating. Rather, they would examine your business plan, your capacity to run the business, your experience as well as those of your staff and personnel. Normally, these capitalists will look for those business ventures in the technology industry where the potential for enormous profits are high.

Business Grants and Loans for Women

Many nonprofit organizations grant help to women who would like to start up a business. The competition is stiff, and the grants are normally designated for disadvantaged women or those coming from low-income regions. You may increase your chances of winning a grant if you can hire the services of a professional grant writer for this.

Trying to get a loan with a low credit score can prove to be a daunting task. If you approach a lending company that offer SBA loans, which are normally backed by the government, then you have higher chances of getting an approval. But your best chance would be to get in touch with organizations that really specialize in helping women fund up their businesses and will not bother lending some funds despite your low credit. 

StateAndFederalBids is the one-stop solution for all those start-up businesses seeking to be part of and grow in the government bidding market. We help you find the right opportunities that your business needs.