A Way for Small Businesses to Have Easier Access to Credit
One of the immediate problems of the Great Recession was that small businesses found themselves cut off from credit. Since small businesses are the country’s true job creation engines, this lack of credit was a real impediment to recovery.
During those dark days, many small businesspeople complained that they were being denied credit unfairly; that their financial prospects and health were, in fact, much better than they looked “on paper”.
So it’s interesting that credit bureau Experian is working with nonprofit trade association the Small Business Financial Exchange to provide a more comprehensive view of the financial health of small businesses nationwide.
The Small Business Financial Exchange, Inc. (SBFE) is a nonprofit trade association that gathers and aggregates small-business payment data in the United States to help organizations build a complete picture of small business.
As a SBFE Certified Vendor, Experian can combine its rich data — including traditional and alternative business data and consumer data on business owners — with SBFE’s data to provide the most comprehensive view of a small business in the market today.
For example, financial institutions looking for broad and deep insights on small and emerging businesses will be able to find that information in a way no one has offered previously.
Also for the first time, Experian clients that are nonfinancial institutions, such as e-commerce, communications, insurers, and software and hardware vendors, can qualify to access this financial data to help them make confident credit decisions by gaining deep visibility into a small business’s capital use and credit history through Experian.
Many Credit Unions Are Expanding Small Business Lending
While it’s great that small businesses may now have an easier time getting big lenders to “see the light” – and look beyond traditional credit metrics – small businesspeople should know that America’s credit unions have always given their lending decisions the personal touch.
These days, many credit unions are expanding their lending to small businesses. So, if you are a small business in search of reliable credit, check with your local credit union.
Find out more at experian.com.
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