Women are more likely than men to rely on personal credit to finance their business

Hiq Lee

Hiq Lee

In an effort to improve financial health, Experian study compares credit behaviors of male and female business owners

Costa Mesa, Calif., June 18, 2019 — 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 today 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:
• Female business owners account for 34% of businesses and represent 22% of active commercial credit shoppers
• On average, women business owners have half the number of commercial trades as male business owners and carry approximately $15,000 less in commercial balances
• Women have an average commercial balance of $25,000, while men have an average balance of $40,000

“According to the Women’s Business Enterprise National Council, more than 1,800 women-owned businesses are started every day in the U.S, representing significant opportunity for our economy” said Hiq Lee [pictured], President Experian Business Information Solutions. “Experian is committed to creating opportunities for small businesses to succeed. With this report, we hope to help women business owners understand how leveraging commercial credit can positively impact their business as well as their financial health.” More...