The Evolution of Commercial Credit Decisioning
Historically, commercial risk scoring models have relied on basic decision criteria and hard-to-find – or even non-existent – commercial credit data, like:
- Commercial credit scores
- Number of years in business
- Year-over-year growth
- Past utilization of credit
While this information is important, it doesn’t provide an objective, comprehensive assessment of risk. By using a limited range of data, lenders often end up turning away legitimate opportunities due to a lack of information or one “bad” data point.
Fortunately, decisioning techniques have improved over time. Today, a wealth of data and emerging technologies enable lenders to more accurately predict risk and offer credit access to qualified small businesses that need it. As a result, lenders can lend more – and more profitably.