A significant gap remains between the credit scores of women-owned companies and those owned by men, according to a Biz2Credit.com survey.
The average credit score of women-owned businesses in 2015 was 600, compared to 615 for the average credit scores for companies owned by men. Both average scores were the same as in 2014.
"Despite the increased profitability that we have seen in women-owned businesses over the last year, our analysis has confirmed that a gender gap does still exist," Rohit Arora, chief executive of Biz2Credit, said in a news release.
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For an industry on the precipice of redefining what a bank is and does, there's a disturbing absence of effort to welcome more women.
December 14 -
Customers Bancorp in Wyomissing, Pa., is building an online borrowing experience for its small-business clients.
October 27 -
Small business alternative lender Biz2Credit has added Fortis Payments to its roster of payment partners.
January 30
Biz2Credit's data comes from its analysis of 35,000 small-business loan applications submitted nationwide.
Credit scores weren't the only measurement that showed women trailing men, in terms of small business management.
On average, businesses owned by men generated about 60% more revenue, at $229,1115, compared to women-owned businesses, at $142,804. The average earnings for male-owned businesses were 61% higher, at $117,096, than for women-owned companies.
Additionally, loan approval rates for women-owned businesses were 33% lower than companies owned by men.
Still, trendlines are on the rise for women-owned companies.
Average annual revenues for women-owned businesses rose 12% to $142,804. Average annual earnings rose about 7% to $72,529. Also, the number of women who applied for funding for their businesses increased more than 130%.
