It is impossible to turn on the news and not see a woman’s rights issue dominating the screen, so it should come as no surprise that women are starting businesses these days more frequently than ever before. However, funding offered to women is not always proportionate to the rate at which women are starting those businesses. Women-led startups apply for funding at an almost identical rate to men, but 28% of women were outright declined for funding while 64% received less than what they applied for.
This is where the world of FinTech can truly be an advantage for women (and men) in business.
Traditional banks are looking for past years financial performance, forecasting, projections, etc., while FinTech can approve advances based on just a few months’ worths of data.
Here at Small Business Funding, we focus on just a few things to help get you the advance you need.
Time in business
Traditional banks are looking for multiple years’ worth of financial statements to see a track record. For those just starting their business, this is a huge problem. Small Business Funding has a minimum requirement of only 3 months in business. We also have options for startups so there is no need to be discouraged by your time in business.
Most people are still recovering from the recession in 2008, which resulted in less-than-stellar credit scores for many entrepreneurs. Small Business Funding focuses on many other data points besides your credit score. Who you were is not an indication of who you are.
According to our friends at NAV, “Banks want to see that your business is bringing in a healthy amount of cash flow. They will want to look at your business bank account statements to determine whether you have healthy balances, and to evaluate how much profit you’re actually generating in comparison to the amount of debt your business has.” With Small Business Funding, you need a minimum of 8k per month in revenue over the previous 3 months for a basic qualification.
While there are other factors that determine your approval, a majority of people can be approved for an advance based on these parameters. Ladies, no need to max out your credit cards anymore. Skip the traditional banks and head on over to FinTech.