New research has found that female business owners are more likely to repay the funds they have borrowed on time than men, although they cite the ability to access traditional funding channels as a key challenge.
According to the study, undertaken by one of Europe’s largest alternative small business lenders, female applicants are 18 per cent more likely to repay their business loans on time than their male counterparts.
The study was undertaken after the Federation of Small Businesses (FSB) found that a quarter of female business owners find it hard to raise cash to grow their business, with many relying on alternative sources, such as crowdfunding, personal cash and credit.
The lender believes that funding small businesses to help them reach their full potential is more necessary than ever at the moment, as UK Finance figures show that the value of lending to small and medium-sized enterprises (SMEs) has contracted by 9.5 per cent over the past three years. In contrast, lending to consumers grew by 9.6 per cent, year-on-year, in October 2017.
As a spokesman for the lender said, more can be done to narrow the entrepreneurial gender gap in the UK and making it easier for women to access business funding would go a long way towards that.
However, he added that the banks appear to be withdrawing critical finance from across the entire small business sector, which the Government must address, preferably by encouraging greater competition in the funding sector.