Trends

 

03 06 2014

03 06 2014

Women Small Business Owners Closing Lending Gap

In recent years, women small business owners have made significant strides in launching organizations and achieving entrepreneurial success. Women continue to open businesses at almost twice the rate of men, CNBC reported. In just 12 months, earnings from women owned organizations increased by 54 percent from 2012 to 2013.

According to a recent report, the trend is likely to continue as women in business help improve the U.S. economy as a whole. The Guardian Small Business Research Institute conducted a study on the role of women in business and predicted that female owned enterprises will create around 5 million new jobs by 2018. This represents nearly a third of all positions that are expected to be added to payrolls during that same time, the U.S. Department of Labor projected.

Women increase loan applications, profit margins

CNBC stated that in 2013, the number of women led small business loan applications shot up to 2,985, nearly double the 1,501 applications seen in 2012. This and other statistics point to potential company expansions over the coming years, including possible additional hiring and internal investments. Furthermore, these findings indicate a general improvement in the U.S. economy and increased confidence rates among entrepreneurs.

Loan approval rates are also up from last year, showing a 7 percent uptick, bringing the total success rates among women in loan applications to 31 percent. However, male owned companies still see greater approval rates – 39 percent in 2013. One reason women may not be experiencing the same level of success in this category is that they are launching new businesses, and many traditional lenders are hesitant to disburse loans in moves they may see as risky investments.

Improving their chances of loan approval is the rise in credit scores among women small business owners. The average credit score for this demographic in 2012 came in at 592 – the next year, this had increased to 610, surpassing the important 600 point benchmark, which is generally considered to be a highly valuable asset for individuals and business owners alike.

Gross operating margins also contributed to closing the gender gap among business owners and leaders. In 2012, gross operating margins ranked at 40 percent for men and 29 percent for women. One year later, male owned businesses increased their gross operating margins to 62 percent, while women increased their profit margins to 59 percent. Though women are not quite at the same level as their male counterparts in this particular realm, the 30 percent jump is a solid sign that women are making strong progress in business as the gender gap closes among according to several key indicators.

Driving factors in gender specific improvements

With such serious advancements found among women in business, researchers sought to understand why and how the gender gap is closing. One of the main driving factors in this evolution is that more women than ever are enrolled in universities and colleges, outstripping men in earning higher education degrees.

Additionally, as social media and digital markets continue to rise in popularity, business owners have taken advantage of using these platforms to lower operation costs, making it easier to save money and operate in a more affordable manner. Social media outlets and new technology have helped women owned businesses become more competitive as decision makers are able to drive in new traffic to their sites on a consistent basis.

Those who are interested in exposing themselves to new technology and business equipment may want to explore equipment leasing options. National Funding provides these services, as well as working capital for entrepreneurs around the country.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

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.