Experian Announced New Credit Scores for Small Businesses

Experian debuets three new credit scores that enable members of its Small Business Credit Share program to quickly recognize high-risk accounts. With Experian's business data and analytics capabilities, the new portfolio risk scores could help customers cut down costs and increase revenue by letting them to address accounts that could pose future business jeopardies.
Credit scores are used as a snapshot of how the borrower has handled his/her bills in the past as well as how he/she is paying today.
Nowadays, it is more crucial than ever for lenders to prevent losses by dealing with the risk in their existing portfolios, said Allen Anderson, president, Experians Business Information Services. "We developed the new scores employing product-specific performance data based on recent economic conditions to optimize predictability. In fact, based on important statistical measurements, the new scores have outperformed other scoring models by as much as 60 percent in performance studies on financial portfolios."
Experians Small Business Credit Share is a collective database that enables customers across different industries to contribute more complete commercial payment data than is usually offered. In exchange, members get individualized access to account information from financial and nonfinancial trade subscribers. The portfolio risk scores offer greater insight into financial portfolios, allowing program members to increase existing account relationships and reduce the costs related with manual inspection of marginal accounts.
Experians Small Business Credit Share Portfolio Risk Scores offer three model alternatives to maximize portfolio conduct:
- All financial score: Recognizes businesses that has a high probability of going delinquent on a financial account within the next year.
- Commercial credit card score: Recognizes businesses that are likely to go 90 days delinquent on a commercial credit card account at least once as well as an account that will go 60 days delinquent two or more times within the next year
- Retail credit card score Similar to the Commercial Credit Card Score but is focused specifically on commercial retail card accounts
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