Biz2Credit study finds credit scores and average incomes

NEW YORK, March 24, 2021 (GLOBE NEWSWIRE) – The Annual Report Biz2Credit Women-Owned Business Study found that although the incomes of women-owned businesses fell in 2020, their incomes increased, mainly because spending declined during the pandemic.

Average earnings of women-owned businesses averaged $ 330,226, higher than in 2019, but $ 421,928 lower than the average for male-owned businesses ($ 716,842) in 2020. L The analysis also found that while the average credit score (597) for a female business owner fell from 590 last year, it was 23 points lower than the average score for a male business owner. (620) in the study.

The Biz2Credit study examines 40,000 credit applications across the country for the entire previous year (2020) and examined the financial performance of small and medium businesses owned by women in the United States. Despite the austerity imposed by the COVID-19 pandemic, many women-owned businesses continue to find growth opportunities.

In 2020, the effects of the pandemic were particularly noticeable for women-owned businesses, many of which were historically less well funded than male-owned businesses.

“Weaker financial indicators among women business owners are indicative of a lack of service and attention provided by traditional financial institutions. This creates a gap in financial opportunities between women who run their own businesses compared to men, ”said Biz2Credit CEO Rohit Arora, who oversaw the study. “COVID-19 has highlighted this trend by exacerbating a long-standing funding gap between men and women. “

The Biz2Credit analysis looked at financial metrics including annual income, operating expenses, age of business, and personal credit score of the loan seeker.

Key Findings of the Biz2Credit Study on Women-Owned Businesses:

Performance of women-owned businesses

  • Average annual income increased from $ 384,359 in 2019 to $ 330,226 in 2020.
  • Average earnings (annual income – operating expenses) of women-owned businesses increased to $ 181,770 in 2020 from $ 107,804 in 2019, largely because spending declined from $ 276,554 in 2019 to $ 148,455 in 2020.
  • Average credit score for women entrepreneurs rose from 590 in 2019 to 597 in 2020.
  • Best industry: Services (excluding public administration) represented 26% of women-owned businesses in 2020.
  • The percentage of business loan applications from women-owned businesses decreased by 2% in 2020, compared to 2019.

Comparison of female and male owned businesses

Biz2Credit compared the health of male and female-owned businesses in its study, and the numbers point to a bigger problem. Women-owned businesses are much less likely to apply for loans. Part of the problem is that, on average, their businesses’ incomes were less than half the incomes of male-owned businesses and their credit scores were lower. Some specificities:

  • Female-to-male borrowing ratio: 27% of women vs 72% of male business loan applications according to Biz2Credit data in 2020.
  • Average annual income gap: women-owned businesses ($ 330,226) earned $ 421,928 less on average than male-owned businesses ($ 716,842) in 2020.
  • Average credit score: On average, the credit rating of women-owned businesses (597) was 23 points less than male-owned businesses (620) in 2020.
  • Average loan size for women-owned businesses ($ 36,981) was 33% less than the average loan amount for male-owned businesses ($ 55,061) in 2020.
  • Average age of the company for women-owned businesses 5 years (60 months) was below the enterprise age for male-owned businesses 6 years (72 months).


More than a quarter (25.8%) of women-owned businesses that applied for business loans in the past 12 months were in services (excluding public administration). Retail trade represented 17% of applicants, followed by health care and social assistance (9.5%), accommodation and food services (9.2%), construction (6.2 %) and arts, entertainment and recreation (5.5%).


Texas and California are the states with the most applications from women-owned businesses, followed by Georgia, New York State, North Carolina, Ohio, Pennsylvania , Michigan, Illinois and Tennessee.

“The average amount funded for women-owned businesses ($ 39,731) was 36% lower than for male-owned businesses ($ 61,958) in 2020,” added Arora, one of the leading experts at the country in small business finance. “After careful analysis, company factors, including lower FICO scores, young company age and higher operating expenses, played a bigger role in this gap, rather than gender. alone. But there is still a gender gap. “

Paycheck Protection Program (PPP) Round 2: Women-owned vs.Men-owned businesses

In December 2020, Congress allocated $ 284 billion for COVID small business assistance for a second round of the Paycheck Protection Program (P3). Biz2Credit looked at its data from PPP loan applicants and found that 49% of PPP Round 2 applicants were female business owners (compared to all SBA lenders at 31%). The average amount approved for PPP Round 2 applicants who identified as female business owners on the Biz2Credit platform was $ 22,000, compared to $ 30,000 for those who identified as male business owners.

Jennifer Moore, a self-proclaimed “mom-entrepreneur”, sees the $ 20,000 PPP loan she secured with the help of Biz2Credit as a “lifeline” that allowed her to keep her business home. Stickers by Jennifer, Go. The mother-of-two creates planning stickers that she usually sold at craft fairs and other events in and around Wayne, Michigan.

“I couldn’t make money locally, and COVID made travel unsafe, so I had to figure out how to run my business entirely online,” Moore said. “When selling online, the key is speed. Customers want things fast. I have new cutting machines; now i’m ready to cut and send the same day by Amazon prime. “

“P3 funding relies on companies like Ms. Moore’s that are working hard, adapting to new market realities and adopting creative solutions to overcome this pandemic. These loans help real small businesses stay viable, ”said Arora. “Biz2Credit is proud to be the leading national provider of PPP loans in terms of number of loans approved.


The 2021 data set for women-owned businesses includes nearly 40,000 completed credit applications received through the Biz2Credit platform from January 2020 to December 2020. The four most important variables in the analysis were: annual income, operating expenses, age of business, and personal credit score. The data was then compiled to examine female and male owned businesses based on annual revenue, operating expenses, age of business, personal credit rating, financing rate. and the average loan amount. The study covered 20 different industries, as well as geography.

About Biz2Credit

Founded in 2007, Biz2Credit has arranged over $ 3 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit or Twitter @ Biz2Credit, Facebook, and LinkedIn.

Media Contact: John Mooney, (908) 720-6057, [email protected]

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