Warning over interest rates (From Gazette & Herald)

Warning over interest rates

WOMEN entrepreneurs in York and North Yorkshire should beware of being charged higher interest rates on their business loans than men.

That is the warning from Laura Morrison, the York-based project manager for Women in Enterprise.

Mrs Morrison, whose Yorkshire Forward-funded initiative aims to lure more women into business, was referring to a new study which looks at the relationship between lenders and women's enterprise.

The study, by Professor Sarah Carter of Strathclyde University, shows that women pay "significantly higher margins on term loans than male owned businesses" - 2.9 per cent on average for women, compared with 1.9 per cent for men.

Mrs Morrison said: "This makes it even more difficult for women, who already have issues of building up a credit rating with lenders as a result of bringing up children and being away from the action for so long.

"In spite of this we are making huge strides when it comes to the fact that women are half as likely to go into business than men.

"I know that the banks, in particular, are aware of the problems and taking them seriously, but we need action soon."

Updated: 14:41 Wednesday, March 29, 2006