There were 5.4 million new business entrants to the U.S. economy in 2021, and the trend is expected to continue. All of these new businesses are candidates for business credit from the commercial lending market. However, most of them do not have the credit...
Business Credit Models: Three Reasons Why They are so Critical Right Now
When was the last time you updated the credit models you use to make business credit or commercial lending decisions? If it has been a few years, you may be approving customers who are likely to default and turning away customers who are a good risk. The fact is...
Beyond NAICS Codes: Using key words for better credit decisioning
The small business failure rate is high. In fact, 50% of small businesses fail after only five years. This means it’s more risky to extend credit to small businesses. What makes a business risky? To answer that, let’s review the top reasons businesses fail: 42%...
Ask Xactus: Answering the Top Four Business Credit Monitoring Questions
While business credit reports are useful, they are only a snapshot of an ever-evolving picture. Proactively monitoring business credit performance within your portfolio is key for identifying risks and opportunities. This is truer than ever given how Covid has...
Are You Responsible for Defining and Identifying Credit Risk? Here are Four Ways to Become a More Efficient Credit Manager/Analyst
As a credit manager or analyst, your job is to help facilitate risk-based credit decisions by defining and identifying areas of risk. It’s a complex role because so many factors must be taken into account: Can you give high-risk borrowers terms or products that will...
Afraid Your Customers Can’t Pay?
Business Credit Tools Can Minimize Your Company’s Credit Risk As a credit or portfolio manager, you make crucial decisions. You must support your customers with business credit, and at the same time, protect the profits and cash flow of your organization. A natural...
Four Ways for Your Business to Survive (and Possibly Thrive) During a Downturn
Having the flexibility to adapt isn’t a top priority for many businesses ─ especially when times are good. Continuous expansion and progress are the usual measures of success, and they are more obtainable when the economy is humming along. However, when businesses...
Three Easy Ways to Improve Your Business Credit Approval Process
The credit approval process has a lot of complexity to it, but if you boil it down to its core function it really is meant to define and identify risk. The process itself is designed to help facilitate risk-based credit decisions. Based on your risk assessments, you...