Finance & Lending


04 08 2013

04 08 2013

Women-owned Businesses Rising, Loans Tough to Secure

A recent credit company study revealed that women appear to face more obstacles when it comes to securing a small business loan. The research examined 14,000 small business loan applications during the six months leading up to the end of 2012 and found female small business owners faced more costly operations, smaller profit margins, and an overall more difficult time securing loans for their businesses.

One of the reasons for this is the fact that women were more likely to open businesses that involved retail – an industry that traditionally is more expensive to operate and gets less of a return on investment. As a result, women-owned businesses typically have operating expenses that are 21 percent higher than male-owned businesses and earn 15 percent lower yearly income than their male counterparts. In addition, these factors affected women’s credit ratings negatively, which resulted in female business owners having a credit score 40 points lower than male business owners.

All these factors result in female business owners having a tougher time securing funding for their company. The study concluded that the small business approval rate for women is 15 to 20 percent lower than that among male business owners.

According to BusinessWeek, getting turned down for a loan can put business owners in a negative tailspin, as it causes them to rely more heavily on using credit cards for leverage, acquire more debt and increase their chances of getting a ding on their credit scores. Ultimately, this cycle results in a lower return on investment and more financial stress.

Forbes magazine reports women-owned businesses represent 50 percent of privately held companies in the United States today – quite an improvement from 25 years ago, when only 10 percent of U.S. businesses were owned by women.

Forbes reports that many female entrepreneurs did not grow their businesses as much as they could because they did not have employees, which is a big impediment to financial growth. In addition, the article states, many women limit their vision and opportunities by declining opportunities for more clients or more work because they are so strapped for time. The article recommends that rather than turning down more clients or project opportunities, women find people to help them get more done. More female business owners may benefit from thinking about creative approaches to financing, instead of choosing not to do projects, Forbes said.

Women who are interested in obtaining financing should consider consulting with National Funding to acquire a small business loan and grow their company.



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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.


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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.


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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.