Credit Claims For Kansas Small Business Owners: Legal Considerations – By Laura Alix CloseText About Laura twitter lauraalix linkedin lauraalix Dec 06, 2017, 12:56 pm EST 5 Min Read
When women business owners need money to support growth, buy equipment or pay off debt, they often turn to credit cards or tap their savings before seeking a loan. from banks, credit unions or other lenders.
Credit Claims For Kansas Small Business Owners: Legal Considerations
Among the reasons why women are more afraid of debt than men are and are often gun-shy about applying for a loan if they have been rejected in the past, the bankers and watchdogs said.
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Also, many may be so focused on running their business that they don’t take the time to network and build relationships with other business owners or even companies that can provide guidance on the growth of their work, said Charles Smith, Small Business. Management consultant with $10.7 billion-asset Eastern Bank in Boston.
“A lot of women entrepreneurs isolate themselves … while men tend to get together,” Smith said. “That creates a unique set of problems. You don’t get enough support, and you don’t get the same communication time as your men. “
Women-owned companies have grown steadily since 2007 and now account for one in five U.S. businesses, according to a report released last week by the Federal Reserve banks of New York and Kansas City. The report’s authors note that the proportion of employment from women’s small businesses increased by 20% between 2007 and 2015, even as employment across all types of small businesses declined. by 4%.
However, the report found that women are not only more likely to get approved for a loan than men, they are less likely to apply for a loan in the first place.
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Women- and men-owned small business owners used credit cards similarly, but women-owned small business owners were less likely to use other types of debt or equity than those male companies (28% versus 34%), the report said. When women entrepreneurs face financial inequality, 78% of them rely on personal savings, while 41% choose to pay additional debt.
The report found that women are reluctant to pay debt and fear rejection more than their male counterparts, which is no surprise to Joy Lutes, vice president of operations work outside of the National Association of Women Business Owners.
“Women business owners as a whole are more at risk,” she said. “They ask for less, they are less valuable to themselves and the company, and they are less willing to return if they hear no. They will put it on a credit card or take it pour into the pension plan or fall back on any private property they have acquired.”
It is the fact that the risk is not acceptable that should make women who own small companies a good bet for banks, Lutes said. He thought that the good would have saved women’s companies from bankruptcy.
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However, businesses owned by men are more likely to be approved for loans than companies run by women. During the one-year period from mid-2015 to mid-2016, the approval rate for men’s companies was 61% compared to 47% for women’s companies.
Eastern’s Smith gave two reasons why that could be the case. The first is that women tend to start more service businesses that already have lower productivity. The second is that many borrowers are men and will not really understand the business if it attracts women.
“A lot of the guys in the room may not understand the business model or see the need for it,” he said. “A lot of times you’re trying to convince a room full of people who won’t use that service, so they, by default, won’t choose to consider a loan.”
For male and female companies, the approval of the loan application is higher among the community banks. Similar to their men, women who own small companies said that the previous relationship with the lender, in addition to their approval of the agreement, affected them the decision to apply for credit.
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Female entrepreneurs also reported the greatest satisfaction when working with small banks (80%) compared with large banks (55%) and online lenders (48%) . However, women business owners who have applied for loans or lines of credit are less likely than their men to turn to small banks in the first place. Among those who applied for loans, 40% of female companies applied to small banks and 49% applied to large banks, compared with 48% and 52% of male companies , respectively.
Women have had a fair share of success getting loans from the US Small Business Administration loans and lines of credit than men’s companies. According to the survey, 61% of women were approved for SBA loans compared to 50% of men.
Smith said the agency has done a good job of making smaller loans more affordable for borrowers, by eliminating loans under $100,000, for example. She said she hasn’t seen a gender difference between those who apply for, and receive, SBA-financed loans, but for women- and minority-owned businesses that tend to have less capital to start with , it makes a difference.
“We do most of our loans in the under $100,000 area, so the waivers are doing their job. I can’t say that enough,” he said. negative impact on women- and minority-owned businesses.”
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Dolores Rowen, director of policy and research with the National Women’s Business Council, said she has experienced reluctance on the part of women entrepreneurs to apply to financial institutions. He said that many women business owners, especially minority women, feel that the deck is the group protecting them from the beginning.
“We like to encourage women entrepreneurs, regardless of their level, always find a women’s business center or SCORE or other SBA partners,” she said. “We don’t want the feeling that you’re going to be rejected to prevent you from throwing your hat in the ring.”
Claire Kramer Mills, assistant vice president and community affairs officer at the Federal Reserve Bank of New York, said economic underemployment is a major reason for women. business owners use credit cards or tap into their savings accounts when they are short on cash. . However, the reliance on private assets and more expensive financing can make it difficult for companies to grow, which makes it difficult for companies to build their capital copy, he said.
Lutes agrees. “If you don’t start your business with a loan, it will be more difficult in the future,” he said. “Too many of our members are looking for personal resources to fund the start-up, and then when it comes time to scale, it’s hard to jump behind.”
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Small Loan Marketplace Loans SBA Federal Reserve Bank of Kansas City Federal Reserve Bank of New YorkA based on a database of businesses opened in the past two years, showing the top states for those who do business.
After spreading across America is the best place to start a small business, because there are 10 million new small businesses starting in 2021 and 2022-data for these applications, according to the report on January 17, 2023 from the White House.
2020 is one of the toughest years in history for small business owners. The economic impact from the global pandemic continues to ripple through the US and the global economy. Rising costs, remote work, and the migration of educated workers to new locations are just some of the challenges that small businesses face. In light of the changes in how—and where—Americans work and live, this project has been launched to explore the state of small businesses across the country.
We explore trends in nine indicators that are critical to the success of small business owners in 2023’s rapidly changing and uncertain environment. These measures include small business loans, cost of living, housing data, migrant workers, corporate tax rates, state incentives for business owners, etc. Our key findings include:
Kansas Department Of Revenue Business Tax Home Page
Utah boasts 12.6 million small business loans per 100,000 residents, second-highest in the U.S. It also has $15,000 in VC funding per $1 million GDP, ranking 7th in the U.S. in 2022 .That’s why Utah isn’t ranked higher. in our list is because it has become an increasingly popular place, and as a result, it has seen the largest rate of living in the country at 16.3% every year.
Georgia is also a great place to do business, as it ranks among the top states with the most small business loans approved – more than 10 million small business loans per 100,000 residents. Georgia saw an influx of 81,406 people moving in, making it the sixth best state in this important category. Although housing costs are still reasonable, Georgia has the second largest cost of living.
Half of all startups in the Palmetto State survive at least five years, and the state government offers 77 different incentives for small business owners — only two states have more incentives. than South Carolina. The state has a low rate of 5% corporate income tax. In addition, housing costs and housing costs are the lowest of all states, and 84,030 people will move in 2022, making
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