In an effort to improve financial health, Experian study compares credit behaviors of male and female business owners. According to Experian's latest Women in Business report, women are opening businesses at a record pace, but they are using less commercial credit and rely more heavily on consumer credit than men, which may be limiting their personal and business financing options. The report was released to educate business owners about the benefits of commercial credit use. According to the report, instead of leveraging commercial credit and traditional small-business loans, female business owners are more likely than men to rely on personal credit to expand their businesses. Experian found:
The impact of relying on personal credit For some women, the inclination to self-finance their business, is having a negative impact on their personal credit scores. Findings include the following:
"Relying on consumer credit can make it more challenging for women business owners to obtain commercial financing in the future," added Lee. "There is a great need for more education about the impact of relying on personal credit. By developing a greater understanding of commercial credit options, women can grow their businesses more quickly and effectively while protecting their personal credit." Tips for Improving the Financial Health of Women in Business Maintaining a business credit profile separate to a personal credit profile can help business owners develop a commercial credit history and protect their personal credit profile. This is especially important should a financial mishap occur with their business. Experian recommends the following to help both male and female business owners improve and maintain their financial health while growing their commercial credit profile:
Business owners looking for additional credit education and resources can visit: www.experian.com/small-business. Methodology Experian Commercial Data Sciences analyzed 3.1 million commercial entities included in Experian's commercial credit database from June 2016 to June 2018. The research focused on a sampling of approximately 2.8 commercial entities included in the database. About Experian Experian is the world's leading global information services company. During life's big moments — from buying a home or a car to sending a child to college to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime. We have 17,200 people operating across 44 countries, and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index. Learn more at www.experianplc.com Media Partner - News and Articles> CEO YEAR - THE BEST CEOS OF THE YEAR CSR LEADER 100 - THE MOST RESPONSIBLE COMPANIES WORLD BIZ MAGAZINE - SUMMER 2019 ISSUE DESTIG ART INVESTMENT: TOP EMERGING ARTISTS Comments are closed.
|