Associated Press writer Joyce Rosenberg reported recently that, “Getting a bank loan is still a struggle for many women who own businesses.
“Kirsten Curry has had three rejections in the past six months and is waiting to hear from a fourth bank. Curry, owner of Seattle-based Leading Retirement Solutions, has applied to national banks, a regional bank and a credit union. The problem is that her 8-year-old retirement advisory firm lost money last year as it invested in technology to help it expand. Although revenue has consistently risen and her company has no debt, her expenses last year were a red flag.”
The AP article stated that, “A survey of businesses conducted this summer and released Wednesday found that 30 percent of companies owned by women were able to get bank loans during the previous three months, compared to half of all the owners surveyed. The survey conducted by researchers at Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet Corp. questioned owners of companies with up to $100 million in annual revenue.
“Only 21 percent of the women surveyed said they expected it will be easy to raise debt financing — essentially loans — in the next six months, compared to 44 percent of all companies. Fewer of those owners said they were likely to pursue a bank loan, at 67 percent compared to 75 percent of all owners.
“Women were also more pessimistic about the impact on their companies of not being able to get financing — 64 percent predicted slower growth versus 44 percent of all business owners. Many women will turn to personal savings, friends and family, credit cards and other alternatives. Curry isn’t optimistic about an approval from the fourth bank, so she and her finance manager, Jaime Humphrey, are working with a referral program to link them up with other banks.”
