One of the virtues of small business is that anyone can start a business at any age. If, that is, you have funding. A new study from Biz2Credit and reported by Forbes suggests that older Millennials are applying for funding more than any other age group, but Baby Boomers had the highest approval rates.
The survey, conducted over 12 months, found that 60 percent of applicants looking for funding were in their 30s or 40s, but the approval rating for applicants in their 50s and 60s was higher.
The study also showed that, in general older business owners were in business for a longer period of time, had greater annual revenue, and had higher credit scores. Forbes reports that in general, older business owners had a greater funding percentage approval than their younger counterparts, with those above age 60 receiving approval 30 percent of the time, and those in their 50s receiving approval 26 percent of the time.
For business owners in their 20s with only a nine percent approval rate and lower credit scores, traditional funding via banks may be a more difficult options. Forbes suggests that younger owners are more likely to receive non-bank loans that generally come with higher interest rates.
As for what the funding each these owners requested was put towards, younger owners were more likely to purchase equipment while older owners were looking for working capital.
In NFIB’s most recent Small Business Optimism Index, 50 percent of small business owners specifically indicated they were not interested in a loan, while 32 percent said that all of their current credit needs were met.