Experian unveiled further enhancements to its Small Business Credit Share (SBCS) program. These new elements enable users to obtain deeper insights into the payment performance and credit history of companies, ultimately promoting greater credit access for small businesses.
The new enhancements to the SBCS program include new scoring models; updated report format and features; and integration with Experian’s decisioning and application management platform, DecisionIQ.
• New scoring models — The new highly predictive risk models have the ability to leverage multiple databases, including Experian’s BizSourceSM (for commercial only), File OneSM (for blended reporting) and Small Business Credit Share (consortium data). The models provide unique insight into the credit history of a small business and its owner. Furthermore, the new risk models provide a deeper assessment of historical trends of a small business’s past payment and credit utilization performance, as well as the ability to predict the likelihood of delinquent payment further into the future.
• New report format and features — The enhanced SBCS report provides assessment of credit and fraud risk and compliance checks in one report. Quick-glimpse views visually direct a user’s focus to key information needed for business decisions and precise small-business credit risk assessment:
◦ Risk dashboard: Highlights potential risk tied to payment behavior, legal filings and fraud. It also is color-coded to help highlight areas of higher risk.
◦ Commercial Fraud Shield: Provides a series of checks to screen for potential indicators of fraudulent activity. These include Office of Foreign Assets Control, victim and inconsistencies checks.
◦ Small Business Credit Share financial acquisition score: Predicts the likelihood of seriously derogatory payment on a financial trade within the next 24 months. Both commercial and blended versions are available using 260 new SBCS aggregates, more than half of which are trend indicators.
◦ Performance trending: Provides 36-month financial, revolving and total account utilization trends, as well as a 36-month view of delinquency and payments.
• Integration with Decision IQ — SBCS members now can leverage Experian’s decisioning and application management platform with SBCS data. With this new ability, users can configure an application form and set custom policies to automate how an application is handled, saving time and resources by reducing the number of manual applications reviewed.
Launched in 2007, Experian’s Small Business Credit Share program is designed to provide a complete view of the fundamental data required for small-business credit risk assessment, which promotes financial inclusion and spurs growth in the small-business segment. SBCS enables clients in financial and nonfinancial (including trade credit) industries to contribute data from their commercial portfolios, such as lines of credit, credit cards, loans and leases, and accounts receivable information. In exchange, members receive exclusive access to unique account data from financial and nonfinancial trade contributors. The program also leverages Experian’s commercial and consumer credit databases, providing members with information on tradelines, collections and public filings, helping them to make more insightful lending decisions.
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