A better way to evaluate small business credit risk

| August 8, 2017

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If a new company has not yet established a credit history, many lenders turn to the business owner’s personal credit to evaluate risk. But does personal credit alone paint an accurate picture of a new business’s risk? Is there a more optimal way to determine how creditworthy a young company may be? To find answers, Experian randomly selected the credit files of 2.5 million U.S. small-business owners and compared them with the records of 1 million consumers. We then looked at the credit history of both groups, as well as key demographic data such as age, education and income. We also reviewed the number of open trades, delinquencies, bankruptcies and business survival rates.

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Webcraft - websites, eCommerce, business apps

Established in 1996, Webcraft pioneers practical utility and cloud computing and is today a leading web technologies provider. The company serves customers around the world offering turnkey business software and web development solutions.

Spotlight

Webcraft - websites, eCommerce, business apps

Established in 1996, Webcraft pioneers practical utility and cloud computing and is today a leading web technologies provider. The company serves customers around the world offering turnkey business software and web development solutions.

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