Financial Support For Women

Which Franchise:

One of the biggest hurdles facing potential franchisees is approaching banks for advice in raising finance.

Research however has revealed that women have a greater understanding of the sources of finance available to them. Levels of a “good” understanding of bank overdrafts and loans, hire purchase, invoice discounting and grant aid schemes were generally 10-15 per cent higher amongst women.

The difference in depth of financial knowledge between the sexes is reflected in the fact that 68 per cent of female bosses view bank borrowing as a business tool for cash flow management, compared to 54 per cent of men.

More than one in five male bosses actively avoid borrowing from banks whilst one in four of their female counterparts view bank borrowing as an inescapable fact of business life.

Also:

* Four in five women bosses have a good understanding of bank term loans, compared to just two in three male bosses,
* Eighty four per cent of women bosses claimed to have a good understanding of bank overdrafts compared to seventy five per cent of men,
* Half of female owned or managed businesses are currently part funded by a bank loan, compared to thirty nine per cent of those owned or managed by men,
* Female bosses are three times less likely than their male counterparts to feel comfortable with the idea of deliberately delaying payments to suppliers to raise business finance.

“Many women who have been running a home and raising a family have many of the attributes needed to run a business successfully - they are decisive, energetic, organise well and are used to doing at least three things at once! If you have these qualities you may be well suited to running your own business but if you are unsure what to do, then franchising could be just the thing.