Experian, a global information services company, has introduced new small business credit share financial acquisition score, to better assess small-business risk at the point of application or portfolio acquisition.
The new commercial credit score predicts the likelihood that a small-business applicant will become severely delinquent or chronically delinquent on a financial instrument such as a commercial credit card, an installment loan or a lease within the next 12 months.
The predictive financial acquisition score allows small business credit share members to maximize their customer relationships by providing them with attractive credit terms and limits.
Experian’s small business credit share is a data reciprocity program that enables members across multiple industries to contribute detailed commercial payment information than is typically provided. In exchange, members receive access to unique account data from financial and nonfinancial trade contributors. The new financial acquisition score is available exclusively to small business credit share members.
The membership in the small business credit share program provides access to Experian’s tools, including: market intelligence through customized portfolio benchmarking; new financial acquisition score; portfolio risk scores that predict delinquency at the product level; and proprietary collection tools, including delinquency notification service.
Allen Anderson, president of business information services at Experian, said: “Now more than ever, commercial lenders and card providers require tools that enable them to accurately and confidently assess small-business risk at the point of application or portfolio acquisition. We developed the new financial acquisition score using performance data from before and after the recent recession to make it highly relevant and more predictive when evaluating risk than competitive offerings.”