Finance & Lending

 

11 30 2015

Female Business Owners Need Alternative Lending

11 30 2015

The Need For Alternative Lending In Female-Led Small Businesses

Despite the economic and social advances of female business owners, too few are taking advantage of the benefits afforded by alternative lenders to expand their operations. With the country recently honoring females in the workplace with both Women’s Small Business Month during October and with Women’s Entrepreneurship Day falling on on Nov. 19, now is a great time to showcase and highlight the tremendous efforts women have made in the world of business.

Female-led companies on the rise

NerdWallet recently released an infographic illustrating the gains made by women in companies large and small. For instance, women-owned businesses grew 27 percent from 2000 to 2012, while new U.S. businesses merely averaged 2 percent growth rate during this time period. This signifies a promising shift on the economic landscape, which is becoming much more welcoming for female entrepreneurs. Still, no matter the gender or race, business owners face significant challenges on a regular basis, including finding the necessary funding to reinvest in the business.

However, while women-owned businesses have made much headway in the past 10 to 20 years, there is still ample room for improvements. NerdWallet’s infographic also highlighted how far women still have left to travel, as females only comprise 15 percent of corporate executives, despite accounting for 52 percent of college graduates. This gap has created a lot room for burgeoning female entrepreneurs to carve out their niche in the business world. In an effort to help female entrepreneurs, some alternative lenders have begun offering small business loans for women that are tailored to the growing demand of women-owned businesses.

Setbacks to business

Operating a business on a razor-thin profit margin might be enough to keep the doors open each year, but it might not necessarily provide enough working capital to reinvest in the business, whether it be in new technology, additional inventory or hiring more workers. Without being able to grow the company, female small business owners will continue to lag behind their male counterparts in terms of revenue and growth opportunities.

Despite not having the necessary funds to re-invest in the business to scale up operations, there are many ways female business owners can locate additional capital. Unfortunately, the options are not being utilized. According to a recent Gallup survey commissioned by Wells Fargo, only 9 percent of women business owners plan on applying for new credit during the course of the year, while 21 percent of male business owners have plans to obtain new credit.

The benefits of alternative lending

The Gallup/Wells Fargo survey did not go into the specifics of why such a small number of female small business owners planned on seeking out loans or new lines of credit. However, with 55 percent of female respondents claiming they felt extremely or very confident in their ability to get a loan, it’s surprising so few are taking advantage of this route. With so many female business owners citing their confidence in obtaining credit, yet with so few actually planning on getting this capital, it can ultimately lead to a lack of growth in this otherwise thriving sector.

Even if a company is successfully attracting and retaining customers or clients, there still might not be enough revenue coming into the business to reinvest for expansion. It can be costly to restructure operations and scale up, no matter how successful the current model is.

Applying for a small business loan or a merchant cash advance can be just the answer many female business owners are looking for to get over that hurdle. Working with an alternative lender can provide that crucial capital injection female-led businesses often need to expand operations. Often, women-owned businesses can receive the funding they need with minimal paperwork and with little, bad or no credit.

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Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.