What the World Would be Like if Business Loans for Women Didn’t Exist
Not a very pleasant thought. Is it?
It’s amazing that competent and qualified individual’s, especially women, still struggle to secure financing for their business.
According to a survey by researchers at Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet Corp., women who own businesses struggle more with getting financing than small company owners in general.
According to the Senate Committee on Small Business and Entrepreneurship, they only receive $1 of every $23 in business financing.
That is staggering.
Here are the facts:
- 37% of the 364 women-owned businesses surveyed said they had sought financing during the previous three months,
- Just over 25% of the women-owned businesses got bank loans, compared to 37% of all small companies.
- 39% of women owners turned to savings and other assets to finance their companies.
- 33% non-women owned small businesses turned to personal assets for financing.
- 60% used personal credit cards
- 66% borrowed from business credit cards
- 54% took out personal loans.
There are many theories that we could espouse as to the reasons for these facts. Rather than propose theorems on the social injustices prevalent in today’s business world, we feel a more positive route is to propose solutions to this challenge.
Business Loans for Women in 1 Easy Step
Seek to work with a top alternative lender.
The traditional route of securing a business loan is through the bank. Everyone knows that. The paradigm shift that started in the mid-2000’s is that the banks are not lending, especially to small businesses. Apparently even less so to women who own small businesses.
Alternative lenders are filling that gap. The traditional barriers that banks use to inhibit the borrowing by women are nonexistent.
These new lenders, who have been around for decades recognize that there is a much better model that enables them to offer fair financing to all small businesses. It has more to do with the health of the businesses and less to do with the traditional scoring models based upon personal credit, personal guarantees, and the assets and or collateral to back the loan.
The result is that more women can get a business loan