Trends

 

01 19 2015

Women Business Owners Struggle to Get Working Capital

01 19 2015

Women Small Business Owners Struggle To Access Capital

Women are increasingly a major force in the small business world, but their access to working capital isn’t keeping pace, according to Bloomberg Businessweek.

The paper spoke to Carrie Charlick and Marcia Cubitt, who own a company called Essential Body Wear, have $4 million in annual sales and have repeatedly been rejected for $500,000 loans since 2012. Their company works by selling women’s underwear at parties at customers’ homes, so their circumstances are unique – but their difficulty getting business financing as women is not.

Women’s business loan approval rates are lower than men’s, according to Bloomberg Businessweek. There are many reasons for this, one of which is that women-owned businesses tend to be younger, which many lenders see as a significant risk factor. Some industry experts say this could also be due to the fact that women are less likely to be assertive when seeking financing.

Women business owners who are seeking business financing should consider whether they would be best served by banks. In many cases, they simply may not be. When banks are unwilling to loan, women business owners may choose to seek financing from an alternative lender like National Funding. Its standards for lending are different from banks’, which may make a loan more accessible.

Featured


  • Working capital for small businesses

    How Much Working Capital Does a Small Business Need?

    Your business needs money - there's no doubt about that. Cash allows you to purchase equipment and supplies, fund marketing campaigns and pay salaries - yours included! But just how much working capital should you have at any given time? Every business has its own unique needs, so no two companies' financial requirements will be… […]

  • Choosing a restaurant location

    How To Choose A Prime Location For Your Restaurant Business

    Restaurants can thrive when they're in a good location and suffer when they're in a less-than-optimal one. Changes ranging from the preferences of customers to downtown development and the closure of nearby businesses can all have an effect on the number of tables a restaurant serves each day. The influence of those factors means you… […]

  • Craft beer bar success tips

    Tips On Running A Successful Craft Brewery Bar

    Beer has a long and storied history, with recipes dating back to some of the earliest recorded civilizations. It's highly preferred in the U.S., too. Aggregated Gallup polls from 2010 through 2016 show beer is the most popular alcoholic beverage in America. Overall, beer is preferred over wine and liquor by 54 percent of men and… […]

  • Trump's Impact on Construction Businesses

    How Will the Trump Administration Impact Construction?

    Like many presidents before him, Donald Trump campaigned on several issues he plans to address during his tenure in the Oval Office. One that stuck out was the need for improved infrastructure. "We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation," he told the… […]