Annual Revenues, Profits, and Loan Applications of Women-Owned Businesses Increased in 2014, According to Biz2Credit Study


New York, NY (PRWEB) March 11, 2015

Average annual revenues and loan approval percentages of women-owned companies increased significantly in 2014, according to Biz2Credit.com, the leading online credit marketplace, which analyzed more than 15,000 applications from business owners on its platform during the last year.

Average annual revenues of women-owned business jumped to $ 127,222 in 2014, up from $ 91,488 in 2013 and nearly 40% higher in a year-to-year comparison. Meanwhile, average earnings rose to $ 67,950 in 2014, up from $ 54,114 in 2013.

In comparison, businesses owned by men generated about 50% more revenue ($ 193,268) on average than women-owned businesses. Further, average earnings for male-owned businesses were 55% higher ($ 105,805) than for companies owned by females.

“Our analysis shows that a gender-gap still exists, despite the increased profitability that we are seeing with women-owned business in recent years,” explained Rohit Arora, CEO of Biz2Credit, who oversaw the research. “However, women entrepreneurs should feel a sense of optimism, as the numbers indicate that the gap is narrowing.”

Meanwhile, average credit scores for women-owned companies dropped slightly below 600 in 2014, down from 610 in 2013. Meanwhile, average credit scores were 15 points higher for businesses owned by men (615) in 2014. However, average credit scores male-owned businesses also dropped from 630 to 615.

“More and more business owners are seeking credit because the improved economic conditions, although realistically not everyone is creditworthy. During the good times, more people are involved in the lending mix,” explained Arora, one of the nation’s leading experts in small business finance. “Many banks will not even consider granting a small business loan to companies that have credit scores under 600, so these types of business owners are forced to resort to higher-cost alternatives to funding.”

The Biz2Credit report showed that 36% more women-owned companies sought funding on the Biz2Credit platform in 2014 than in 2013. The average age of women-owned businesses applying for funding in 2014 was 31 months, up from the average age of businesses owned by women (27 months) in 2013.

“These are great signs of the growth in small business confidence,” suggested Arora. “Small businesses do not apply for funding unless they believe they can repay their debts.”

Approval rates for women-owned businesses were 29% lower than for male-owned businesses.

“In 2014, we saw male entrepreneurs return to the credit market after sitting out for a while. Generally, they owned longer established, more creditworthy businesses,” Arora said. “This accounts for much of the difference in approval rates.”

Key findings:


Average earnings for women-owned businesses rose to $ 67,950 in 2013 from $ 54,114 in 2013, an improvement of more than 25%
36% more women-owned businesses applied for credit in 2014 than in 2013
The average credit score for women-owned companies dropped from 610 in 2013 to 600 in 2014
Retail trade businesses represented 19.85% of the women-owned companies in the study, the largest category of businesses.

Statistics: Women-owned vs. Male-owned Businesses

Women to Men Ratio: 26% (4,061) vs. 74% (11,480) registrations on Biz2Credit.com in 2014
Average Annual Revenue for women-owned businesses ($ 127,222) was $ 66,045 lower than the annual revenue of male-owned companies ($ 193,267) in 2014.
Average Operating Expenses: Women-owned businesses tended to have slightly higher average operating expenses. Expenses were 47% of earnings for women-owned businesses; 45% for male-owned companies
Average Credit Score: On an average, the credit scores for women-owned businesses (600) were 15 points lower than male-owned companies (615). The difference was 20 points in 2013.
Average Age of Business (in months): 31 vs. 37 for male-owned companies (the age of businesses applying for loans was lower for women-owned businesses)

Biz2Credit cited the following reasons for the improvement of the fortunes of women entrepreneurs:

The overall improved economy has made it easier for women-owned businesses to get loans.
Peer-to-Peer or “Marketplace Lending” by institutional investors in the small business credit marketplace is changing the industry. While big bank lending is up, they tend to focus on larger amounts. Marketplace lenders are charging attractive interest rates and offering longer terms, thereby taking market share from factors and cash advance companies.
With experience, women-owned businesses have become more competitive, more efficient, and more cost effective than ever before.
Online lending portals have made it easier for borrowers to reach banks, marketplace lenders, micro lenders and other types of financial institutions.
Startup costs of all types of businesses have gone down. Companies don’t need big offices, and many of them are hiring part-time employees who can work virtually from home on their laptops or tablets and smart phones.

About Biz2Credit

Founded in 2007, Biz2Credit has arranged more than $ 1.2 billion in small business funding throughout the U.S. and is widely recognized as the #1 online credit resource for startup loans, lines of credit, equipment loans, working capital and other funding options. Using the latest technology, Biz2Credit matches borrowers to financial institutions based on each company’s unique profile — completed in less than four minutes — in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,300+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers. Visit http://www.biz2credit.com, follow on Twitter @Biz2Credit, and Facebook http://www.facebook.com/biz2credit.







Wednesday’s Spectacular Rise inside Mortgage Applications


Chicago, IL (PRWEB) January 15, 2014

Weekly mortgage applications rose with a incredible 11.9% for the week ending January 11th. Peoples Home Equity was surprisingly pleased with all the information because it was the many positive inside months!

Weekly mortgage applications, reported by the Mortgage Bankers Association now, January 15th, created a dramatic rise now inside what countless creditors, like Peoples Home Equity, were not expecting to find. The information was extremely positive for the housing marketplace plus shows which the marketplace is definitely reacting to the declining initial jobless claims plus unemployment information you have enjoyed over the previous month.

30-year fixed rate mortgages reacted by improving 0.03 to closing at four.53%, because shown about MortgageNewsDaily.com In general mortgage rates have been increasing this week because a big decline was enjoyed last Friday, January 10th. Peoples Home Equity expects both rates plus house costs to continue high because more positive marketplace information, including today’s weekly mortgage applications report, hits the headlines. Prospective house customers ought not to simply wait found on the sidelines hoping either mortgage rates or property values to decline again for a ordering chance. Instead people must know the truth of the marketplace condition that is which mortgage rates continue to be under their extended expression famous average plus nationwide property costs continue to be trending at a discount vs peak degrees inside 2006. The lender encourages all potential house customers to at minimum apply for a house loan today due to the pros it brings. First, the individual learns how much credit they can be provided, this assists change their look for property listings. Second, whenever a house buyer makes a call, the seller takes them more really due to the promise of funds within the bank. This really is important for customers that are contending with investors which are ready to pay with full cash.

In the finish, potential house customers ought not to consider getting a mortgage today because a misfortune to a year ago. Yes mortgage rates plus house costs were lower a year ago, even so they are inside a sturdy trend higher. Trends can last a extended time, plus today is the greatest time to secure a mortgage before rates will heighten further due to the Federal Reserve’s program to further taper quantitative easing. Thus, apply today for a mortgage before the housing environment gets less affordable.

Please contact Peoples Home Equity loan officer now for mortgage details at: (855)-897-0300







Tips For Mortgage Applications & The Home Buying Process


Oakbrook Terrace, IL (PRWEB) November 01, 2013

As the housing market continues to rise with interest rates remaining attractive first-time homebuyers are seeking interest to purchase properties. Peoples Home Equity, an Illinois-based lending company is informing their prospective mortgage applicants that buying a home is an easy and enjoyable process if well prepared, which is instilling confidence with walk in first-time home buyers.

Buying a home should not be a frustrating process. To be prepared and confident in the process, a mortgage applicant should know, roughly, what their credit score is before applying for a home loan. The difference between good credit score and an unappealing one is the interest rate offered to a mortgage applicant. All home buyers and investors want the lowest interest rate possible; the best way to ensure a low monthly payment on a mortgage is to apply for a loan when one has an attractive credit score. To reach good credit score the individual must prove that they paid, on time, a range of financial obligations. If one has missed a few large and important payments in the past, such as a car payment or credit card minimum payment then credit risk will present itself causing the lender to probably raise the interest rate.

Once the credit check process is completed the applicant should know their mortgage rate and amount they may borrow. From this point he or she can filter their property and judge how much to spend in relation to a comfortable monthly payment. People Home Equity will only lend the amount they believe is easy for the homebuyer to prepay. A good rule of thumb is to find a home no more expensive than the homebuyer’s annual income times three. This way the homebuyer is not purchasing something that is not difficult to afford nor is there a great possibility of a large loss of equity in a market down cycle. With national foreclosure rates declining 39% from 2012 to 2013, according to CoreLogic, all lenders are eager to hold the current market trend positive. Keeping lien holders safely away from slipping into another national savings and loan crisis is a priority now given potential losses and current government regulation.

Peoples Home Equity offers a number of loan calculators on their website to assist potential applicants in getting their finances in order before applying for a home loan. A popular calculator is the How Much Do I Have to Earn? tool which informs users how much money they have to earn to afford the house payment and accompanying expenses. To begin using these useful tools please visit PeoplesHomeEquity.com and click on the loan calculators tab.


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