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 economic recovery.
During those dark days, many small business owners complained that they were being denied credit unfairly. They maintained that their financial prospects and health were, in fact, much better than they looked on paper.
So it’s interesting that Experian, the credit-reporting bureau, is working with the Small Business Financial Exchange (SBFE), a nonprofit trade association, to provide a more comprehensive view of the financial health of small businesses nationwide.
The SBFE 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 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/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.
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 business owners should also know that America’s credit unions have always given lending decisions their personal touch.
Travis Credit Union is no different. Business dollars invested here have a direct path back into the communities we serve. As local businesses ask their community to shop local, we ask businesses to bank local. Have questions about what we can do for your business? Contact TCU Business Services at (707) 469-2042 or visit traviscu.org/business-services.
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