Equifax, a renowned data analytics and technology company, has launched a new commercial credit score, OneScore for Commercial, designed to enhance credit access for small businesses. This innovative tool will empower commercial lenders with a comprehensive overview of a small business’s creditworthiness, facilitating an increase in approved loans and helping businesses, especially startups, to secure the capital they need for growth.
Using the advanced Equifax Cloud technology, OneScore for Commercial integrates financial data from over 33 million businesses and combines it with credit information from business owners. By providing a more holistic view of a business’s credit standing, this new commercial credit score could pave the way for 3 to 4 million more small businesses to gain access to credit.
Equifax’s OneScore for Commercial could increase the scorable rate of loan applicants by up to 50%, allowing lenders to approve 15 to 20% more loans without changing their risk profile. This new tool aims to bolster the thriving small business sector, which, according to the U.S. Small Business Administration, comprises 99.9% of all U.S. businesses.
“Small businesses are the lifeblood of the U.S. economy. They create jobs and contribute to the vitality of communities,” stated Todd Horvath, President of Equifax U.S. Information Solutions (USIS). “Equifax is investing in new data and analytics to further support business growth and access to capital. Today’s announcement builds on our recent launch of the OneScore consumer credit score, reinforcing our commitment to financially inclusive lending.”
The surge in new business applications between 2020 and 2022, which saw 14.9 million new businesses registered, underscores the need for commercial lenders to expedite loan application processes to meet capital demand.
Bill Phelan, General Manager of the Equifax USIS Commercial business, added, “Lenders want to make more efficient credit decisions without increasing their risk exposure. The OneScore for Commercial credit score offers a more comprehensive view of a business’s ability to pay, providing greater predictability for lenders.”
OneScore for Commercial is designed for use by financial and non-financial institutions, such as telecommunication and utility companies, when conducting business. This solution leverages Equifax’s unique Commercial Financial Network, public records, firmographic data, and non-financial business information, powered by Equifax’s patented NeuroDecision® Technology, an explainable artificial intelligence (xAI) system.
Apart from offering highly predictive credit scores in 12 major industries, OneScore for Commercial is also expected to streamline application, credit decisioning, and risk model management processes, helping lenders qualify more accounts confidently and enabling more small businesses to access credit.
The new tool is available to lenders and service providers now. To learn more about OneScore for Commercial, visit the link here.
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This article, "Equifax Unveils OneScore for Commercial to Boost Small Business Credit Access" was first published on Small Business Trends