Economic volatility shapes business conditions Experian is very pleased to announce the release of the Q4 2024 Main Street Report. Join Experian experts for a deep dive on small business performance Experian will share key findings from our Q4 Main Street Report in the Quarterly Business Credit Review: Tuesday, March 4th, 10:00 a.m. Pacific | 1:00 p.m. Eastern Register to attend Economic Forces at Play: Stability vs. Disruption: In early 2025, U.S. small businesses faced short-term volatility as a new administration introduced policy changes amid global uncertainties. Expectations of tax and regulatory reforms created cautious lending and investment conditions, while inflation kept borrowing costs high. Supply chain disruptions and energy price fluctuations added to economic complexity, with consumer resilience supporting demand despite signs of spending fatigue. Strong cash flows and solid holiday sales led lenders to ease underwriting standards slightly. Moving forward, small businesses must remain agile, adapting to shifting policies and market conditions to sustain growth. Download the latest report for more insight. Download Q4 Main Street Report

Experian shared the latest insights on small business credit conditions and presented key findings from the Main Street Report for Q4 2024 during the Quarterly Business Credit Review. Our lead presenter, Brodie Oldham, provided his perspective on the macroeconomic environment and conducted a deep dive into the Q4 Main Street Report, along with the most recent small business credit data. The session concluded with a live Q&A where we addressed audience questions. Key Highlights from the Webinar: Presentations by leading experts on commercial and macro-economic trends Credit insights and trends on over 30 million active businesses Coverage of industry hot topics, including business owner and small business data Exclusive commercial insights unavailable elsewhere Peer insights gathered through interactive polls Discovery of key small business trends to support informed decision-making Actionable takeaways based on the latest credit performance data Get Notified About Future Webinars

Small business optimism is rising to a historic high, but economic uncertainty continues to present risks. With unemployment down and rate cuts in a holding pattern, the Experian Commercial Pulse Report (Feb 11, 2025) provides a comprehensive snapshot of the macroeconomic environment and small business credit trends—essential insights for lenders, risk officers, and businesses balancing growth and risk. Watch Our Commercial Pulse Update Consumer confidence slips while small businesses are more hopeful When we think about sentiment in the economy, we see a divergence. Consumer sentiment fell to 71.1 in January, down from 74.0 in December and 10% lower than a year ago. This suggests that consumers may be more cautious about spending. Small business optimism, however, surged to 105.1 in December, up from 101.7 in November. This is the highest level since October 2018, signaling that despite economic uncertainty, small businesses remain hopeful about future conditions. Introducing the Experian Small Business Index With an economy as dynamic as this one, small business risk can shift in an instant. To help risk professionals, lenders, and business leaders stay ahead, we have launched the Experian Small Business Index™—a comprehensive, data-driven tool that tracks the financial health of small business owners and their businesses across the U.S. on a monthly basis. Experian trained the model for the index on data dating back to 2006. In this week's Commercial Pulse report, we talk about how the index has evolved since the pandemic and what opportunities it reveals. Download the Commercial Pulse Report Visit Experian Small Business Index Related Posts

Sparking Prosperity: Insights on Small Business Owners and Credit Access Experian is excited to announce the availability of a new monthly index on small business credit health. The Experian Small Business Index™ is a pioneering monthly index that uniquely blends business owner and small business elements to provide an indicator of the financial health among small business owners and their businesses across the U.S. This innovative index bridges the gap between personal and commercial finance, helping to reveal key trends and opportunities for growth within the small business sector. December 2024 Index The Experian Small Business Index (SBI) declined two points in December to 40.5, following an uptick in November 2025 to 42.9, as business owners grappled with balancing inventory and slow consumer retail sales, growing only 4% during the holidays. This is a return to the level businesses saw in March of 2019, prior to the pandemic and subsequent inflationary pressures of the recovery. In December, consumer 30+ delinquencies rose 1.4% and utilization rates remained flat MoM. Small business lenders grappled with loosening credit while seeing an increase in commercial delinquency rates leading into the holidays. According to the US Census Bureau, 458K new businesses opened in the U.S. in December, up 1.5% from November. The Experian Small Business Index will capture the challenges these emerging business and their owners will face in obtaining credit and avoiding delinquency in their first 24 months in business. The large number of new businesses opening in the southern regions have higher than average utilization and more difficulty accessing credit in traditional credit markets. Small business cashflows remain positive, aligning with NFIB owner optimism at 105.1, a level not seen since May 2019. This will place upward pressure on the index in 2025. What to expect to see in Experian's new index Powerful view of business owner & small business data By integrating personal and commercial financial data, the Experian Small Business Index provides a comprehensive view of industry trends, state-level dynamics, and overall financial health, making it a valuable tool for uncovering growth opportunities, identifying potential risks, and supporting informed decision-making. Insights pulled from millions of Experian commercial profiles The Experian Small Business Index monitors the small business environment by tracking trends such as the number of emerging businesses, delinquency rates, credit utilization, and new credit approval rates. Index values range from 0 to 100, with a normal range between 40-60, where values trending below 40 indicate a less favorable business environment than average for owners, and values above 60 indicate a more favorable business environment than average. A favorable environment indicates overall health and ease of access to and usage of credit in the region by a small business owner. If a region is below 40, it indicates a more difficult environment in gaining credit for small business owners based on a variety of factors such as age of business, delinquency rates, and other attributes used in the index. The Experian Small Business Index also compares state performance to the national average and evaluates industry performance within each state. View the latest Experian Small Business Index

“Everyone is a Small Business!” was my answer to the question “What will we be talking about in 2030?” at the most recent Financial Digital Frontiers forum hosted by Biz2X. AI is not only redefining how we work, but also why we work. With each AI model release pushing the frontiers of reasoning one can surmise that there will be a large shift in “knowledge work” required by large corporations since information now is quickly accessible to everyone in short format. Education will have to change, but so do actual job requirements and number of jobs -since people will be expected to do more with AI support. This change leads to flattening corporations and fewer entry ladders available to recent college grads. Society will need to bridge the gap between jobs available and people who are actively looking for work, to sustain a robust economy. Small Business, entrepreneurship is the answer. 50% of Gen Z want to start their own small business.Samsung & Morning Consult Survey The growth in entrepreneurship is supported by the most recent data, where we see the number of small business upstarts double per year starting in 2021 – totaling almost a half-a million businesses started each month. This is driven not only by the digital and AI revolution enabling entrepreneurs to be a 1-person shop and drive millions of dollars in revenue (and in the future billions of dollars) but also by the redefinition of the purpose of work and people craving flexible time management as well as a need to own their production, especially Gen Z. In summary, I see three trends that will continue to drive the increase in entrepreneurship: AI and the Digital Revolution: one person can run a business easily if educated enough in digital and AI tools on the market. Corporations leaning into AI and flattening their organizations, forcing a gap between highly educated people and full-time jobs available. Younger generations focus on flexible time management, studies have shown they want to own their time and production – with 50% of Gen Z stating they want to start their own small business. So how can lenders and the government help support the entrepreneurs? Lenders have to expand the view of small business. At Experian we offer non-traditional factors and a willingness to work across industries to help drive small business lending decisions. Access to credit has to be grown across communities: One key factor is making sure people understand the importance of business credit and the benefits of keeping it separate from their consumer profile. Education, tools, and access to resources that bridge the digital divide need to be provided to small business owners —especially those who do not have a digital background. In the new world – repetitive work is out, creative work, small business is in.

The January 28, 2025, Commercial Pulse Report reveals fascinating insights into the evolving U.S. economy, with a spotlight on the transportation and warehousing sector—a critical backbone of global trade and supply chains. Watch Our Commercial Pulse Update Over the past year, this industry has experienced steady growth, largely fueled by younger businesses. Companies less than two years old now account for a remarkable 50% of new commercial credit accounts in the sector. This entrepreneurial surge reflects the industry's role as a magnet for new opportunities amid expanding global trade. Rising Credit Risks Amid Growth While the sector’s growth is a promising trend, it has come with challenges. Credit risk for transportation and warehousing businesses peaked in 2023, prompting lenders to tighten underwriting standards. This shift has led to a noticeable reduction in the total volume of commercial credit granted within the sector, making it harder for businesses to access the funding they need. Source: Experian Commercial Pulse Report Global Trade and Its Influence The broader trade environment has also played a role in shaping this industry. Global trade expanded by 3.3% in 2024, with services trade leading the way at a 7% increase. However, the U.S. trade deficit widened to $78.2 billion in November, driven by rising imports and geopolitical uncertainties. Tariff adjustments under President Trump’s administration could further impact this industry, introducing a layer of unpredictability for 2025. Looking Ahead The transportation and warehousing sector stands at a crossroads, balancing opportunities for growth with mounting credit constraints and external pressures from the global trade landscape. Businesses operating in this space will need to stay agile, exploring innovative strategies to navigate financial challenges and capitalize on expanding trade networks. For more insights into how these trends are shaping the small business economy download the Commercial Pulse Report, visit Experian’s Commercial Insights Hub or reach out to your Experian account team to explore customized solutions for your business. Download Commercial Pulse Visit Commercial Insights Hub Related Posts

The increase in business formation in recent years has remained elevated—a trend that is expected to continue—presenting a unique opportunity to create digital relationships with new business owners. As the economy transforms the demand for business credit is set to surge1. Firms looking to capitalize on this need should prepare for evolving expectations from a digital buyer demographic, who has low tolerance for barriers. Credit risk automation can help firms to be responsive, while mitigating risk exposure. The pandemic has ushered in a new trend in increased new business formation1, and it’s expected to continue. As more new businesses form and economic conditions transform, pent-up demand from the small business market will be unleashed. Customers now expect seamless digital experiences and self-serve models to carry out their business needs. Firms can be first to the table to build digital relationships with small business customers through credit risk automation. New tools can automate the ability to render small business credit decisions, reducing the friction and time spent on manual business credit applications, underwriting or approvals. The nature of B2B buyers: younger buyers in solo ventures demand instant digital applications and self-service options Business buyers are changing, and most small businesses are solo ventures. The face of business buyers is changing according to Forrester’s global research, “younger generations of business buyers born after 1980 are having their say and now represent the majority of business buyers globally at a whopping 64%.2” The 2023 Forrester’s annual Buyers’ Journey Survey shows that the younger generation of buyers also prefer to go through different channels to buy, like self-serve methods via external marketplaces or digital applications 2. Over 90% of the nation’s small businesses are solo ventures.U.S. Small Business Administration Office of Advocacy 2024 Report Small business ownership breakdown by generation There are 34.7 million small businesses in U.S., 27.1 million are managed solely by their owners and don’t employ any additional personnel. Gen X owns most small businesses (47%), followed by baby boomers (40%) and then millennials (13%), with the average age to start a business as 35 years old.3 The art of the possible: How to automate your business credit processes to scale quickly and efficiently The breakneck pace of innovation has caused an uncomfortable scenario for firms looking to innovate without a large budget or much room for error and delays. How can firms apply credit risk automation fast, with minimal resources, to stay competitive as the small business market continues to change? The modern catalyst for growth is knowing when to buy or build new capabilities. It can be difficult to actualize the right combination of automation, data and tools to build the best operational processes that deliver a customer experience tailored to the needs of small business customers. This difficulty is due to complexities in business models, resource capacity and the ability to create mindshare with key decision-makers on the subject. Onboarding new data sources or tools and then adapting them to existing systems can often be a time-consuming undertaking within organizations. Modern firms typically require strong technical application vetting and vendor management protocols to avoid systemic risk and fraud. However, this creates an odd scenario for teams that urgently require sophisticated tools within an organization: Once onboarded, the process is so long that the tools are already obsolete. Your credit risk automation strategy should aim to include easy-to-implement tools that can easily be approved. Knowing when to buy or build a solution can be a competitive differentiator in gaining speed to market. B2B firms should reflect on the rapid market shifts within the last few years when considering their level of proficiency in building solutions at the pace of the market. Firms should envision and optimize their operations to enable automation and look toward technology partnerships with enterprise solution providers that help build the technology stack. Finding strong technology partners that can deliver robust data and solutions to solve a multitude of challenges with a single vendor relationship is an important differentiator when time is a valuable resource. Firms should consider finding partnerships that also create mutual value in the form of delivering analytical insights back into their business. Experian’s Business Information Services can help you to understand how easy it is to bring on web-based credit decisioning and application processing within your small business customer experience and leverage our wealth of experience, vast datasets and commercial solutions to achieve profitable growth. Want to get more details? Download the eBook to learn how to quickly automate business credit with real-time decisions. Download eBook Source Information 1U.S. Small Business Administration, Business Formation Statistics 2Younger Business Buyers Are Having Their Say, Forrester, February 2023. 3Forbes Advisor, Small Business Statistics of 2024, January 2024

Commercial Pulse Report | 1-14-2025 Experian has just released the Commercial Pulse Report for January 14th, 2025 which includes a compelling look at the leisure and hospitality sector. The Leisure & Hospitality sector has long been one of the hardest-hit industries following the COVID-19 pandemic. But in 2024, it demonstrated impressive resilience and recovery, with data from the latest report highlights several noteworthy trends that mark a turning point for this vital sector of the economy. Watch Our Commercial Pulse Update Travel Reaches New Heights Air travel soared to record-breaking levels in 2024, with the TSA screening over 903 million passengers—a 6.5% increase from pre-pandemic levels. This rise reflects not just pent-up travel demand but also growing consumer confidence in the safety and accessibility of travel. Hotel occupancy rates, while recovering, still lag slightly behind pre-pandemic levels. Reduced corporate travel and the rise in remote work have contributed to this trend. However, leisure travel remains strong, and small businesses in the travel ecosystem are seeing the benefits. Stabilizing Credit Activity and Improved Risk Scores On the commercial credit side, there’s good news. Businesses in the Leisure & Hospitality subsectors have experienced a gradual increase in new account inquiries, and credit risk scores have steadily improved since late 2023. These metrics indicate a promising stabilization of credit activity. Interestingly, the average number of commercial credit accounts per business continues to decrease. This could reflect cautious financial planning as businesses strive to balance growth with sustainable debt. Consumer Trends Drive Growth The affordability of travel is another major driver of the sector’s recovery. Inflation in the travel sector has trended lower than the broader economy, making vacations and leisure activities more accessible for many consumers. Despite financial pressures, such as a significant portion of Americans living paycheck-to-paycheck, this trend has supported a surge in travel demand. Challenges Remain While the outlook is positive, challenges persist. For example, delinquency rates within the sector fluctuate month to month, although no long-term trend of increased risk has been observed. The Hotel, RV, and Campground subsector, which bore the brunt of the pandemic’s impact, now boasts the lowest charge-off rate among Leisure & Hospitality categories—a testament to its steady recovery. There’s a lot more on the leisure and hospitality study in this week’s report, so download your copy today! Download Commercial Pulse Visit Commercial Insights Hub Related Posts

Happy Holidays! We hope this post finds you in good cheer and enjoying festivities where you are, whether it be with your friends and colleagues or with family. As 2024 draws to a close, businesses across the U.S. are navigating a changing economic landscape, with new opportunities and risks emerging across industries. The latest Experian Commercial Pulse Report, released December 17, 2024, highlights critical trends in inflation, employment, business optimism, and a special focus on some interesting trends in commercial credit — industry-specific credit risk. Watch our Commercial Pulse Update The Rise of New Businesses and Shifts in Commercial Credit 🏢 One of the most striking trends in the latest Commercial Pulse Report is the rapid growth of new businesses, particularly in the Southern and Western U.S. regions. In November alone, 449,000 new businesses opened, a figure that reflects a 50% increase compared to pre-pandemic levels, and how these newer businesses access and manage commercial credit. Also: Focus on Growth Regions – With new businesses booming in the South and West, lenders can identify opportunities to support small business formation and expansion in these high-growth regions. Tailored Financial Products – Recognizing the preferences of new businesses for commercial cards and established firms for term loans can help lenders offer products that meet the unique needs of different business stages. Risk Management by Sector – Industry-specific risk insights enable businesses and lenders to make informed decisions. For example, supporting Healthcare or Real Estate firms may offer more stability, while Construction and Food Services may require more robust risk management. There's a lot more in this week's report, so download your copy today! Download Commercial Pulse Visit Commercial Insights Hub Related Posts

As small businesses prepare for growth – tariffs take center stage Experian is very pleased to announce the release of the Q3 2024 Main Street Report. Join us for a deep dive on Q3 performance Experian will share key findings from our Q3 Main Street Report in the Quarterly Business Credit Review: Tuesday, December 10th, 10:00 a.m. Pacific | 1:00 p.m. Eastern Register to attend Gain insight on small business health The Q3 2024 Experian Main Street Report offers a deep dive into the economic trends and policy shifts shaping small business performance and their credit outlook. With credit risk managers at the forefront of navigating evolving financial landscapes, the report highlights critical developments in economic stability, global trade, and credit performance. These insights are essential for refining risk assessment strategies and positioning portfolios for a resilient 2025. Download the latest report for more insight. Download Q3 Main Street Report

Happy Thanksgiving and welcome to our November 26th, 2024 Commercial Pulse Report preview! As the economy continues to evolve, the latest Commercial Pulse Report from Experian highlights some interesting trends in the housing market and for the many small businesses in the construction industry. These sectors are navigating complex challenges, showcasing resilience in the face of rising costs and changing market dynamics. Check out this week's report for our deep dive on construction. Watch our short video below for a summary of what the latest report includes. Watch Our Commercial Pulse Update Construction Industry Highlights: 🔧 Adaptation in Financing: Construction businesses are shifting from term loans to commercial credit cards to manage costs. 🏗️ Controlled Delinquencies: While rising, construction delinquencies remain much lower than other industries, showing sector strength. 📊 High Demand Drives Growth: Despite challenges, the sector thrives due to strong housing demand. Housing Market Highlights: 🏠 Affordability Challenges: Housing costs are rising faster than incomes, forcing many households to allocate more of their earnings to housing. 📈 Rent Inflation Soars: Since 2020, monthly rents have increased by 127%, adding strain to renters nationwide. 💸 Mortgage Payments Surge: High property prices and 6.4% mortgage rates have driven average payments to record highs. 🌟 Resilient Demand: Despite challenges, home sales rose 5% year-over-year, signaling robust buyer interest. 🚀 Relief Ahead? Potential interest rate cuts and increased homebuilding activity could balance the market. Download Commercial Pulse Report Visit Commercial Insights Hub Related Posts

Experian provided the latest insights on small business credit conditions and presented key findings from the Main Street Report for Q3 2024 during the Quarterly Business Credit Review. Our lead presenter, Brodie Oldham, shared his perspective on the macroeconomic environment and delved into the Q3 Main Street Report along with the most recent small business credit data to uncover what it revealed about small businesses' performance. The session wrapped up with a live Q&A, during which we answered audience questions. Highlights from the Webinar: Insights from leading experts on commercial and macro-economic trends Credit trends and analysis across 30+ million active businesses Discussion of industry hot topics, including business owner and small business data Exclusive commercial insights not available elsewhere Peer perspectives through interactive polling Exploration of small business trends to support better decision-making Actionable takeaways grounded in recent credit performance Get Notified of Future Webinars