The market for alternative finance (AltFi) saw a sudden growth spurt last year, and there were several peer-to-peer business lending and crowdfunding platforms that surfaced. The banking system is still very strong, however it might not always be ready to serve the small and medium-sized enterprises (SMEs). On the other hand, the alternative finance industry started to get bigger shares of SMEs lending by funding in new innovations. Yet, women who own businesses are still unaware of these highly helpful, highly lucrative alternative options.
69% of female business owners were unaware of altfi options
Surprisingly, there are a lot of female business owners that just gave up once they were declined by their banks. This was proven by a research report, carried out by Just Cash Flow PLC, where 35% female business owners decided not to pursue their dreams once they heard the word ‘no’. These female owners never searched for alternatives. 69% of them said that they were unaware of altfi options, while 95% of all women surveyed don’t know of any commercial broker in their area who can give them trustworthy financial business advice. This is in contrast with male business owners, where only 24% gave up when their banks rejected them.
A government report from last year emphasized this lack of awareness by female owners. The report revealed that most of the time, female entrepreneurs are challenged to find the support they need when their businesses need funding. They are usually referred to options that are sponsored by the government, to which they find themselves ineligible.
Compared to traditional banks, alternative finance provides entrepreneurs with a simple, fast, effortless approach to getting the funding they need. These options allows their business to rapidly grow and prosper. This would be a great benefit to female entrepreneurs who are trying to balance the time they’re exerting into their business with time for family.
Nowadays, entrepreneurs want flexibility, especially since no one wants to waste precious time setting up bank appointments and waiting for application approvals. Time is money for all entrepreneurs.
SMEs, especially those run by female entrepreneurs, should be aware of the financial options available to them. These alternatives might be the key to turning their ambitious business dreams into well-founded business realities.
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