Finance & Lending

 

07 13 2015

Women Benefit from Faster Business Lending Options

07 13 2015

Women-Owned Businesses Can Benefit From Faster Lending Options

With the economy improving and posting steady employment numbers, researchers are taking another look at gender gaps in business, particularly in regard to business loans for women.

The wage gap prevalent between men and women has long been discussed and heralded as an issue of equality, but it’s not just female employees who may be short-changed, as women-owned businesses also have tougher times accessing adequate loans from financial institutions in comparison to their male counterparts, according to statistics recently reported on by CNBC.

One of the reasons for the disparity is that female business owners on average have credit scores 15 points lower than male owners. As a result, lending institutions are more hesitant to offer loans. In 2014, the average loan approval rate for women was 15.3 percent compared to 21.5 percent for men.

Though the numbers have actually gotten modestly better year over year since 2014, there is still room for improvement in the form of tailored lending solutions for women-owned businesses. The lending gap in the past year closed nearly 30 percent, indicating women are improving the financial positions of their businesses while accessing other forms of capital they need to expand.

To aid female business owners in their quests to attain credit, faster, personalized lending options could be the key. Here’s how quick credit can help women-owned businesses:

Streamline operations

Business loans should never be seen as a one-size-fits-all approach to business needs. That’s why smaller and faster advances are more useful. To stay ahead in an increasingly competitive environment, companies must stay lean and efficient at all times. Having high expenses and debt obligations ties down too much working capital and leaves owners with little room to make improvements to their businesses.

A quick, convenient loan can free up this capital and allow businesses to implement new strategies, improve their services and compete at a higher level with both male- and female-run firms. The key is to have an adequate loan amount with favorable terms.

Cover immediate costs

As opposed to traditional bank loans, businesses also need quick influxes of cash to cover monthly expenses and new purchases. Because larger loans typically come with longer repayment periods and stricter lending criteria, it’s not always worth it to put in the time and money to apply for a loan, especially if the chances of approval are slim. Further, lengthy approval processes aren’t aligned with the real-world needs that female business owners face on a routine basis. When increased funding is needed, it’s required as quickly possible, not at some future date that’s yet to be determined.

Fast credit lending makes it easier for companies to continue forward with their original business plans without having to stall expansion processes or delay the purchase of new equipment.

Working with National Funding

Alternative lenders can be a great resource to access capital quickly. At National Funding, women-owned businesses can take advantage of a fast one-page application process that makes it easier and more convenient to fill out the loan request. Plus, with credit scores that are typically lower than men, women may be wary they don’t have enough assets, capital and lending history to be approved for a loan. However, National Funding does not require any collateral or payment upfront at all, which is an especially pertinent and business-friendly means to provide alternative business financing to those who need it.

With this straightforward process, there are no deceptive tricks or hidden charges, and female business owners may be able to access capital in less than 24 hours.

Contact National Funding for small business financing solutions.

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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, 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, 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.

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.