Last updated on September 6th, 2023
Equifax has introduced a new commercial credit score for small businesses. The credit score addition has the potential to open new opportunities like capital access to support more small businesses. The new product is backed by the Equifax Cloud™ and Ai technology. Here’s what you need to know about the new commercial scoring product by Equifax.
Equifax Launches OneScore for Small Businesses
Commercial lenders can now leverage new Equifax data sets to assist in providing capital opportunities to more small businesses. The U.S. Small Business Administration reported that 99.9% of American businesses are small businesses. There are over 33 million small businesses in the U.S. and between the years 2020 and 2022 alone, there were 14.9 million business applications filed.
As a result, commercial lenders are dealing with high workloads for loan application reviews. The new Equifax commercial credit score can help facilitate loan application reviews for commercial lending. The Equifax launch of its OnceScore for Commercial credit score can help provide more credit opportunities for small businesses. It will aid small businesses – and startups – to better exhibit their creditworthiness when they approach lenders.
Equifax’s Commercial Credit Score Technology
OneScore by Equifax is powered by The Equifax Cloud™ – an infrastructure tailored to highly regulated data workloads. It uses data and technology to help customers work efficiently, develop deeper insights, take smarter actions, and provide better service at scale. OneScore is a single commercial credit score and it links financial data to more than 33 million businesses with credit information on the business principal (capital). These efforts especially help startups and small businesses to better demonstrate creditworthiness to lenders. In return, companies get access to the capital they need to grow their business.
In conjunction, OneScore also makes use of Equifax’s patented NeuroDecision® Technology, powered by explainable artificial intelligence (xAI.) Its job is to significantly increase performance by delivering highly predictive credit scores in 12 major industries, including:
It helps commercial lenders save time and money on the following:
- Credit decisions
- Risk model management processes
The Benefits of OneScore For Lenders and Businesses
OneScore has claims stating it can help lenders score as many as 50% more loan applicants. With the growth of business applications filed in the last two years, staying prepared for an influx of business loan applications would be efficient. Lenders will be able to approve 15 to 20 percent more while still maintaining the same risk factors, all thanks to OneScore’s predictive power and higher score rates. According to Equifax’s research, 15 to 20 percent more loan approvals can result in 3 to 4 million additional small businesses gaining access to credit.
Both financial institutions and non-financial institutions, like telecommunications and utility companies can use OneScore when conducting business. Overall OneScore will help commercial lenders qualify more loans with trust in data and technology in efforts to grant more access to capital for small businesses.
Equifax Invested in Data and Analytics to “Fuel Business Growth”
“Small businesses are the lifeblood of the U.S. economy. These powerful economic engines help cities thrive by creating jobs and putting money back into communities,” commented Todd Horvath, President, Equifax U.S. Information Solutions (USIS). “At Equifax, we are investing in new data and analytics to further fuel business growth and access to capital. For decades, Equifax has led data and product innovation to expand access to credit; today’s announcement builds on our recent launch of the OneScore consumer credit score – further evidence of our commitment to financially inclusive lending.” Source.
“In today’s commercial credit landscape, lenders want to make more efficient credit decisions without opening themselves up to greater risk,” said Bill Phelan, General Manager of the Equifax USIS Commercial business. “By providing a more holistic picture of a business’ ability to pay, the OneScore for Commercial credit score delivers greater predictability within a lender’s portfolio. Helping to improve scorable rates and score performance for commercial accounts can assist lenders as they qualify and close more accounts – with confidence.” Source.
Related Article: What Is A Business Credit Score?