Women own 30% of all businesses in the United States. But as of 2013, they got only 17% of loans backed by guarantees from the U.S. Small Business Administration. Worse still, business loans for women are, in dollar terms, only a tiny slice of the total small business lending pie: Of all the dollars lent to small businesses in America in 2013, only 4.4% went to women-owned businesses.
Part of the reason may stem from the fact that, historically, women-owned businesses were concentrated in industries perceived as having low growth potential, like social services and education. And even though more women are now starting businesses in non-traditional industries for women like construction and transportation, overall lending to women may remain low because traditional lenders don’t lend to start-ups.
Alternative lenders may hold the answer. Many alternative finance companies will lend to businesses that have been in existence for as few as three months. Moreover, when alternative lenders make their speedy pre-approval decisions, they are basing them on credit scores and women have been found to have better credit profiles than men.
In addition to your credit score, alternative lending sites are programmed to consider your business’ monthly sales and the amount of money you are seeking. These three numbers will serve as a starting point for an evaluation and for a referral to the lenders with the highest likelihood of providing you the funding you are seeking.
Utilizing proprietary technology, Bizfi’s automated loan platform simplifies the application process for business owners, allowing them to see real financing offers in a matter of minutes.
Find out how much your woman-owned business could get: Get Started Now