The Summer 2023 report contains several insights on the economic landscape impacting small businesses, among them — rising delinquencies being a significant concern. The latest report emphasizes the need for strategic planning and careful management of debt, along with an understanding of broader economic factors that may impact small business performance.
Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
Are you a small business owner navigating the process of establishing your business credit profile?
Experian is here with a helpful guide about business credit and how it works to help you on your journey. From understanding how business credit scores and reports are originated, to employing best practices for building up a strong business credit report, the Experian Blueprint is here to assist you every step of the way.
Spending during the first quarter exceeded expectations, providing much-needed cash flow for small businesses. This influx of capital has enabled small firms to reduce debt and consider future growth and capital expenditures. Despite inflationary pressures and tighter lending conditions, the outlook remains cautiously optimistic. The Federal Reserve’s anticipated rate cuts, expected to begin late in 2024, could further stimulate economic activity and provide a boost to small businesses.
North American economic strength is riding on the backs of the resilient U.S. Consumer. For the past two years, the fear of an imminent recession rang in the ears of economists and consumers alike, radiating declining confidence in growth and the ability to prolong spending behaviors consumers grew accustomed to during pandemic recovery. Those fears have been pushed aside as consumers beat holiday spending expectations, upending retailers' anxiety entering the season.
Explore state-level and industry level data that banks, credit unions and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
Discover five business intelligence reports that can help drive your strategies across the customer lifecycle.
Outstanding performance in the third quarter is a great headline focused on the resiliency of the American consumer. Business confidence and financials benefited from a consumer confidence boost as market conditions appeared to improve as inflation receded. Consumer spending remained elevated, supporting small business cashflow health, but a rising percentage of that consumer spend originated from leveraged consumer credit products. Creditors have been monitoring the rise in unsecured debt utilization and putting into action exposure limiting underwriting criteria.
Lenders are tightening underwriting criteria due to high delinquencies among consumers and small businesses amid inflation. People are revising their spending and investment plans. While technology companies thrive, sectors like logistics, utilities, and healthcare face challenges. Supply chain issues are easing, but reduced demand affects inventory orders, impacting trucking and logistics with lower tonnage and mileage. Consumers show resilience, bolstered by a strong job market, wage growth, and lower energy and food costs. However, dwindling savings and increased reliance on unsecured debt, along with the resumption of debt obligations like student loans, and ongoing inflation, put pressure on consumers. Recession fears are easing, but concerns for 2024 remain.
Q1 GDP grew by 1.1% annualized, following a 2.6% gain in Q4 2022. However, recent data's accuracy is affected by weather-induced consumer spending and unusual seasonal adjustments. Notably, Q1 GDP doesn't reflect the impact of tightened lending standards yet. The core of the economy, measured by real final sales to domestic purchasers, rose by a solid 2.9% annualized, driven by strong consumer spending concentrated in early Q1 and aided by significant cost-of-living payments. Inventory reduction subtracted 2.3ppts from Q1 GDP growth, and this trend is expected to persist as businesses draw from existing stockpiles to meet demand. The Oxford Economics US Business Cycle Indicator declined for two consecutive months, indicating weak Q1 performance. The indicator suggests feeble Q2 growth and a possible H2 2023 recession.
The Spring report contains several insights on small business performance including - delinquencies are rising for small businesses across regions and products, and businesses are making decisions about how they repay debt. The economy will slow in 2023, and consumer and small business credit health and spending behavior will adjust to the new reality. Cashflows will be tested in industry segments focused on home-based work/life as the labor force returns to the office, but some businesses require hybrid work schedules to encourage collaboration and a more connected work environment.
Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
The fourth quarter boasted open commercial lending markets, inclusive of all tiers of credit risk, even as measured commercial delinquencies returned to pre-pandemic levels. An increasing number of commercial lenders are developing product and underwriting strategies to limit the expected exposure in a near term recession. The Fed is unlikely to cut rates in the near term as hietened inflation lingers. Higher costs of goods and services will pressure spending behavior as affordability tightens and personal cashflows thin.
Small businesses are struggling to access inventory, components, and staff due to the pandemic's impact on the supply chain. However, emerging small business growth has been explosive during the pandemic, with businesses adapting to the high demand, low supply market by focusing on digital experiences. Small businesses are also focusing on diversity, equity, and inclusion initiatives to create a more inclusive small business ecosystem. Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
Experian and Oxford Economics shares and discusses critical insights in the latest Q3 2022 Main Street Report. This webinar includes: - Leading Experts on Commercial and Macro-Economic Trends - Credit insights and trends on 30+ Million active businesses - Industry Hot Topics Covered (Inclusive of Business Owner and Small Business Data) - Commercial Insights you cannot get anywhere else - Peer Insights with Interactive Polls (Participate) - Discover and understand small business trends to make informed decisions - Actionable takeaways based on recent credit performance
The US economy grew a buoyant 2.6% annualized in Q3, confirming Experian and Oxford Economics’ view that the economy was not in recession. Indeed, the economy created a robust 261k jobs in October, while the unemployment rate came in near a historically low of 3.7%. Higher borrowing costs will weigh on corporate profits, hiring, and business investment. The consumer will feel the effects of an increase in unemployment and a reduction in excess savings. Download the full report to learn more.
Reward and protect your borrowers and businesses throughout their financial journey by revealing a more complete credit history through consistent data reporting. Learn how to report data to Experian in a simple easy to follow 8-step process. Learn more about consumer data reporting at experian.com/datareporting and business data at experian.com/datareportingbusiness.
The Fall 2022 Beyond The Trends report focuses on the retail industry and small business strategies. Key points include: 1) Lenders tightening credit criteria, affecting small business loan availability. 2) With declining consumer demand, businesses must prioritize repayments, and lenders need to plan for delinquent accounts. 3) Retailers can attract consumers during the 2022 holiday season by providing personalized experiences, utilizing social media, and optimizing their online presence. Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
Business owners continue to struggle to access quality labor, strengthen operations, and create backup supplier networks as supply chain disruption and inflation hamper delivery. Diesel prices are up 71% YOY according to the U.S. Energy Information Administration and the higher cost of energy is resulting in lower margins and impacting delivery of goods and services. These costs have been rising sharply since February 2022 and exacerbated challenges already being addressed by business owners in the 1st quarter of 2022 commodity, component, and inventory shortages. Small businesses are adjusting to a high-demand low supply market through 2022. Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
Experian begins a new chapter with the release of the Q1 2022 Main Street Report through our collaboration with the leading economists at Oxford Economics. During Q1, small businesses kept average commercial loan balances healthy and stable. At the same time, moderate delinquency inched up but remained low overall as business and consumer travel returned to form, offering major tourist destinations a boost.
This report provides insights into the current state of the small business economy in the US. Despite challenges such as inflation and supply chain disruptions, small businesses remain a vital part of the economy and are showing resilience. Lenders and creditors are adapting to engage with new small businesses and differentiate risk earlier in the life of a business. Non-traditional data overlays are becoming critical in assessing and pricing risk. The report also highlights the importance of innovation and entrepreneurship in the US, with new business applications trending at almost 425k a month. Subscribe to this quarterly report here or follow our full suite of quarterly insights on our Commercial Insights Hub.
The fourth quarter of 2021 enhanced the pressure felt by small businesses as the largest wave of COVID-19 hit the US. In addition to the effects of pandemic outbreak of labor and consumer engagement, an inflationary surge, largest increase since 1982, coupled with pandemic-related supply-and-demand imbalances, weighed heavily on US small businesses along with a notable impact to consumer sentiment.
Although workers were getting raises in the currently tight job market, rapid price increases are eroding consumers’ earning power. Average wage earnings went up by 4.0% in Q4 ’21 vs. the previous year, yet a 7.5% increase in inflation results in a net decline in real earnings. Workers’ money is not going as far as it used to. Rising wages, however, put pressure on businesses’ payrolls who may be forced to pass those costs to consumers.
Small business credit performance was mixed in the third quarter as businesses dealt with the COVID-19 Delta variant. Early stage delinquency rates rose modestly while late state delinquency and bankruptcy rates fell decisively. With daily COVID cases falling, demand for goods and services should rise in coming quarters. Downside risks are concentrated on the supply side with businesses struggling to hire workers and dealing with supply chain stress.
While many financial institutions may be fearful of the risks associated with lending to thin-file consumers, there are numerous ways to expand lending beyond a generic 700 credit score threshold.
Watch this on-demand webinar where Experian experts, Shawn Rife, Product Management Director, and Alvin Yuan, Senior Product Manager, explore how diversified data can help financial institutions grow and protect their portfolios while expanding financial access to underserved communities.
Mortgage lenders are preparing now for the end of CARES Act forbearances and are focused on assessing the impact on their portfolios as borrowers exit accommodation. In our latest Experian analysis, we explore how mortgage lenders can more accurately gauge this impact and strategies to help navigate the current mortgage landscape.
In today’s digital-first world, providing a seamless customer experience is no longer a nice-to-have, it is a necessity. Join Experian and Celent as we explore the benefits of modernizing your lending experience with digital income and employment verification. We’ll share best practices for implementing a successful verification strategy so you can mindfully grow your business and give your customers the experience they deserve.
The risks associated with BNPL have many BNPL providers predicting the possibility of increased scrutiny by the federal and state regulators. Watch this on-demand webinar where Experian experts, Tony Hadley, Senior Vice President of Government Affairs, and Aaron Kline, Vice President of Product Management, explore BNPL and look at associated regulatory issues.
Access our webinar on-demand and watch Experian and Nova Credit experts break down the importance of diversity, equity and inclusion initiatives to advance financial inclusion. Our experts will share real takeaway strategies and capabilities designed for fintechs and other financial institutions to leverage for lending deeper and expanding customer universe.
Small businesses increased hiring for the holidays funded by credit while servicing their outstanding debts. The moderately delinquent balances for small businesses declined to 1.21 percent in the fourth quarter from 1.60 percent at the same time last year. Taxes are a rising issue for small businesses, but increasing concerns here did not dampen borrowing or hiring in the fourth quarter. The availability of credit has cushioned the blow of the pandemic for now and a third stimulus will help insulate small businesses from altered consumer spending patterns.
As some industries struggle to contain price increases and to survive in a post-pandemic world, others are thriving on the back of economic reopenings driving consumption. Reopenings and the release of pent-up demand for services is pushing up economic growth and powering an economic recovery that will be among the fastest in modern times.
Unsatisfied with the time-consuming process of physically collecting and reviewing pay stubs and bank statements as part of their tenant screening process, AppFolio knew it was time to turn to a digital-first solution. Initially challenged to find an income-verification solution that would easily integrate into its platform while being fast, convenient and digitally efficient – AppFolio turned to Experian as their trusted partner.
Download the case study to learn about the incredible results AppFolio saw after their first year with Experian’s AccountView.
We’ve narrowed down practical steps to deploy that will help you preserve positive customer relationships, comply with regulators, while continuing to collect delinquent balances. Dive into these topics and more in this on-demand webinar:
The surge in digital demand over the past year reinforced the deep connection between recognition, fraud prevention and the online customer experience. Learn more about business and consumer priorities in this infographic.
The health crisis brought unprecedent challenges to the US rental industry and housing market. The pandemic exacerbated legacy business problems while at the same time creating new hurdles for consumers, landlords and property management companies alike. But by leveraging the latest data and tools available, rental professionals could absolutely see growth in their portfolios in 2021.
In this eBook you’ll learn:
• Top metrics driving the housing market in 2021
• How to reduce risk and prevent fraud while improving the customer experience
• Key strategies you can deploy today to mitigate risk and promote growth
IDC describes how new market entrants are offering employment and income verification alternatives to address some of the key challenges facing lenders today.
Learn what consumers are most concerned about regarding digital interactions in this infographic.
Fintechs have and are disrupting the business of banking. It no longer just revolves around taking deposits, making loans and facilitating payments. While some fintechs are specializing in just one aspect, many continue to expand their service offerings, constantly asking the question, “what other customer experience can we revolutionize?” If this sounds like your fintech, you must first ask yourself, do we need to operate like a bank in order to meet our goals?
Learn how regulatory decisions may impact fintechs in 2021, the pros and cons of bank-fintech partnerships and the different types of bank charters and their advantages in this eBook.
Join our industry experts to get the latest credit trends on originations, delinquencies, and average balances and listen in for the latest data on economic drivers and the current outlook as of March 2021.
View our latest tip sheet to learn how you can develop a more focused debt collection and recovery strategy to help reduce costs, save time and maximize resources.
Explore state-level and industry-level data that banks, credit unions, and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
In Experian's latest Energy Symposium Series, our expert speakers discuss emerging fraud schemes related to the COVID-19 vaccines and how increased use of digital and home technologies could lead to an upsurge in identity theft and ransomware attacks on vulnerable families.
Discover how organizations can transform their lending strategies for post-recovery with AI and advanced analytics and learn about ways to implement these new technologies.
Discover how Atlas Credit was able to double their loan approval rates while reducing risk with instant decisioning and custom models.
Join our industry experts to get the latest credit trends on originations, delinquencies, and average balances and listen in for the latest data on economic drivers and the current outlook as of February 2021.
For many companies, the greatest opportunities for growth lie in increased digitalization and new technology that enable organizations to accelerate their digital transformation.
Download our new white paper to get a closer look at five ongoing technology trends that are likely to advance throughout the year.
In today’s challenging economic environment, it’s more important than ever for utility providers to adopt strategies and processes that preserve positive customer relationships without hurting their bottom line. Learn how can you more accurately assess your customers’ ability to pay and provide relief to those who need it most.
Small businesses increased hiring for the holidays funded by credit while servicing their outstanding debts. The moderately delinquent balances for small businesses declined to 1.21 percent in the fourth quarter from 1.60 percent at the same time last year. Taxes are a rising issue for small businesses, but increasing concerns here did not dampen borrowing or hiring in the fourth quarter. The availability of credit has cushioned the blow of the pandemic for now and a third stimulus will help insulate small businesses from altered consumer spending patterns.
Access our latest white paper to discover current collections industry trends, outlook for 2021 and the benefits of leveraging data and analytics to make more profitable decisions and better serve consumers in times of extreme economic uncertainty.
As the global health crisis nears its one-year anniversary, it’s clear it has caused a paradigm shift in the way we work, live and think. The pandemic also encouraged an acceleration of innovation and transformation across the mortgage industry while mortgage lenders navigated through one of the most unique lending environments of our time.
As we look ahead in 2021, it’s important to assess trends and strategies for mortgage transformation. Our complimentary eBook explores the answers to these questions:
What were the key trends that shaped mortgage in 2020?
What are the main hurdles lenders face in modernizing the mortgage process?
What should lenders focus on to accelerate their path towards the modern mortgage?
Explore state-level and industry-level data that banks, credit unions, and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
Join our industry experts to get the latest credit trends on originations, delinquencies, and average balances and listen in for the latest data on economic drivers and the current outlook as of January 2021.
Explore state-level and industry-level data that banks, credit unions, and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
Join our industry experts to get the latest credit trends on originations, delinquencies, and average balances and listen in for the latest data on economic drivers and the current outlook as of December 2020.
Leading economists from Moody's Analytics and experts from Experian provide a deep dive on the Q3 2020 Experian/Moody's Analytics Main Street Report credit insights.Cristian DeRitis, Moody's Deputy Chief Economist provides an update on the impact of COVID-19 and an overview of macro-economic conditions impacting small business. Derrek Grunfelder-McCrank, Moody's Associate Economist provides a regional analysis of credit trends including business sectors that are performing well, and which ones are under pressure, and what's driving the trends. Brodie Oldham, Experian's Senior Director of Analytics Consultancy closes by sharing Experian's perspective on how small businesses are fairing.
The 2020 presidential race, divided government and the latest developments on state legislature – there is a lot to talk about in the regulatory world these days. Join Tony Hadley, SVP, Government and Regulatory Affairs, and our expert panel as they dive into legislative and regulatory trends in the context of the recent election, including insights into privacy, the CFPB and more.
Topics discussed:
Explore state-level and industry-level data that banks, credit unions, and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
Join Craig Wilson, Senior Director of Experian Advisory Services and our credit union industry partners to discuss the top three issues effecting the credit union industry and share insights for using digital transformation to accelerate recovery during and following COVID-19.
In a fight for survival small businesses have turned to layoffs and borrowing as they attempt to reach the other side of COVID-19. Increasing borrowing is helping to mask rising late-stage delinquencies and bankruptcy. Layoffs and borrowing can only mask weakness for so long until a reckoning will arrive. A new round of government stimulus could mitigate this reckoning but doesn’t appear likely to arrive before year’s end. This will push more small businesses to again borrow for survival. When new borrowing is no longer a necessity delinquency and bankruptcies will rise.
In the fourth session of Experian's Energy Symposium Series, our expert speakers discuss the different types of available generic and industry-specific risk scores, as well as modeled income options at the time of onboarding to ensure proper individualized treatment of all customers.
Watch this webinar for the latest updates regarding the macroeconomic forecast and credit trends as we head into Q4 2020. Our experts will conduct a deep dive into changing trends as a result of COVID-19, featuring all-new data and implications.
Explore state-level and industry-level data that banks, credit unions, and fintechs can leverage to track the downturn and be correctly positioned for the recovery in this monthly report.
Read our new report delivering in-depth analysis on COVID-19 economic scenarios as of October 2020 and what they mean for potential trajectories of the economy – with all-new data for Q4.
The report, featuring key insights from Mohammed Chaudhri, Experian Chief Economist, provides a deep dive on:
Leading economists from Moody's Analytics and experts from Experian provide a deep dive on the Q2 2020 Experian/Moody's Analytics Main Street Report credit insights.Cristian DeRitis, Moody's Deputy Chief Economist provides an update on the impact of COVID-19 and an overview of macro-economic conditions impacting small business. Derrek Grunfelder-McCrank, Moody's Associate Economist provides a regional analysis of credit trends including business sectors that are performing well, and which ones are under pressure, and what's driving the trends. Brodie Oldham, Experian's Senior Director of Analytics Consultancy closes by sharing Experian's perspective on how small businesses are fairing.
Small businesses have turned to borrowing to survive periods of prolonged slumping sales, in many cases from government programs offering loan forgiveness. This increased borrowing has masked rising delinquent balances, but such a solution is a short-term fix. Small businesses will need to find ways to generate revenue to keep their credit current. Defaults are expected to rise in coming quarters as forbearance programs expire and as customers are likely to change their priorities in the wake of COVID-19.
Leading economists from Moody's Analytics and experts from Experian provide a deep dive on the Q1 2020 Experian/Moody's Analytics Main Street Report credit insights.Cristian DeRitis, Moody's Deputy Chief Economist provides an initial assessment of the impact from Coronavirus on the economy and an overview of macro-economic conditions impacting small business. Derrek Grunfelder-McCrank, Moody's Associate Economist provides a regional analysis of credit trends including business sectors that are performing well, and which ones are under pressure, and what's driving the trends. Brodie Oldham, Experian's Senior Director of Analytics Consultancy closes by sharing Experian's perspective on how small businesses are fairing.
After only one quarter there is no doubt the theme of 2020 is the pandemic, Covid-19. Unrelated to the pandemic and subsequent shuttering of a swath of economies across the world, delinquencies rose in the first quarter. This was as businesses reduced their borrowing. Lower borrowing will not have lasted long as government efforts to aid small businesses have taken the form of SBA lending. Nevertheless, 2020 will be a year of deteriorating performance and rising bankruptcies for small enterprises.
Leading economists from Moody's Analytics and experts from Experian provide a deep dive into the Q4 Experian/Moody's Analytics Main Street Report credit insights. Ryan Sweet, from Moody's provides an initial assessment of the impact of Coronavirus on the economy, and Derrek G. McCrank provides an overview of regional credit conditions. Brodie Oldham, Experian's Senior Director of Analytics Consultancy closes by sharing Experian's perspective on how small businesses are fairing.
Confidence in a US-China trade deal helped to cushion business borrowing in the fourth quarter. Delinquent balances were up over the quarter due mainly to seasonal trends but were down from last year thanks to the continuation of the economy’s expansion. Weakness continued in agriculture and manufacturing businesses, but a trade deal could help these firms next year. All things considered, 2019 was a good year for small-business borrowing, and 2020 should bring more of the same.
In this webinar, we share insights about how states and municipalities can reduce the level of unclaimed property through effective location and outreach to commercial property owners. Experian's vast and robust data repository of U.S. commercial entities can be used to improve unclaimed property performance. We share how using this data can help you rapidly and accurately identify commercial organizations operating in your state that should be reporting to you but are not.
Talk of a trade deal helped to shape the narrative for the third quarter, but there is more at play for small businesses than trade. Delinquency rates fell across most industries, but agriculture-related industries like construction and transportation had a rough quarter. A rising number of small businesses seeking credit should help to keep performance around current levels.
In this webinar, Experian reveals the results of a five-year study of 8,300 Veteran Business Owner credit profiles. We studied credit behavior between 2015 and 2019 to see how Veteran-owned businesses were performing compared to Non-Veteran-owned.
Businesses are now increasingly renegotiating their payment terms with suppliers through a program called terms push-back (TPB). In this webinar, Scott Blakeley leads a discussion about how businesses can effectively respond to Terms Pushback requests.
In spite of business confidence in the second quarter being shaken by talk of trade war escalation, businesses got a helping hand from seasonal factors which combined to push delinquency rates down. New businesses continue to form, providing an opportunity for credit expansion, if these businesses can access credit. Delinquency rates fell across most industries, but agriculture’s problems continued as weather and trade conditions continued to weigh on small farms. These factors won’t be as helpful in the third quarter so fundamentals or confidence will need to improve to propel performance and growth forward.
Experian Business Information Services recently sat down with Sarah Evans, owner of Sevans Strategy, a digital PR agency and Linda Waterhouse, owner of WSI Web Systems, to get their perspectives on managing credit, and some of the insights revealed in the Experian Women in Business study.
Experian Commercial Data Sciences analyzed 3.1 million commercial entities from June 2016 to June 2018. We focused our research on approximately 2.8 million of those entities with either a male-owned or a female-owned designation. In this talk, Analytics Consultant, Andrew Moore, presents the results of our research.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q1 2019.
In this 15-minute session, Analytics Consultant Emily Garrett will walk through some examples on how alternative data can make a big impact in your business, including how to:
Small businesses brushed off a government shutdown as stock markets recovered and income gains remained steady in the first quarter of 2019. Delinquency rates remained mostly stable, with pockets of weakness spread out among regions and industries, notably agriculture in the Great Lakes and manufacturing in the Southwest. Small firms seem to have simply shrugged off the first-quarter headwinds and continued with business as usual.
Download this e-book to learn more about transforming the customer experience with data, analytics, and automation.
We are in an age of unprecedented opportunity, where ubiquitous data and new technologies are shaping the world and dramatically changing the way consumers interact with businesses like yours. To succeed you need a comprehensive, unified view into your customers and their needs.
As a business leader, what can you do to attract and acquire new customers? What tools do you need to quickly act on insights and to make relevant decisions consistently to set yourself apart from the competition?
To answer these questions and better understand how businesses are tackling the challenges and opportunities surrounding digital transformation, we commissioned Forrester Consulting to survey over 900 senior executives with responsibility for enterprise risk, analytics, customer data, and fraud management across North America, Asia-Pacific, Europe, Middle East, and Africa.
Download the whitepaper to learn more.
The fourth quarter capped a second year of solid performance and growth for small-business credit, but there are signs that the period of moderation experienced during the past two years is over. Since the government shutdown has the potential to throw small-business lending a curveball in the first half of 2019, the outlook for small-business credit is neutral. Conditions were positive in the fourth quarter, but this may not last long. Delinquency rates remained mostly stable, with pockets of weakness spread out among regions and industries, notably construction in the Plains. In addition to the 35-day shutdown, rising interest rates, destabilizing trade policy and slowing home-price growth are potential trouble sources that are already starting to impact some regions.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q3 2018.
The overall outlook for small-business credit is positive. Outstanding balances rose in the second quarter, as did the average balance per business. Delinquency rates continued the downward trend they have maintained through the expansion, and default rates stabilized at the level they reached last quarter. Continuing strength in the economy will keep small-business credit performance strong through the end of the current expansion, if not longer. Rising rates and destabilizing trade policy are potential sources of trouble, but thus far they haven’t slowed down small-business credit growth.
The overall outlook for small-business credit is positive, but some industries such as construction have a negative outlook. Outstanding balances rose in the third quarter, as did the average balance per business. Delinquency rates are stable around their current levels, but this could change quickly if risks mount for certain industries. Continuing strength in the economy should keep small business credit performance in check through the fourth quarter and early next year. Rising interest rates, destabilizing trade policy, and slowing home price growth are potential sources of trouble that are already starting to impact some regions.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q2 2018.
Business leaders today recognize a myriad of benefits the digital economy has to offer, such as improved customer experience and better insight for decision-making. Despite these advantages, organizations struggle to deliver the experience they would like, and data isn’t always in a suitable state to be used for this purpose.
This study provides a unique perspective on customer experience as it relates to digital transformation priorities and challenges. Check out the full report for our in-depth analysis and key findings, such as:
David Britton, VP of Industrial Solutions gives a talk about fraud trends and the future of identity, and how Experian helps clients mitigate fraud.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q1 2018.
The overall outlook for small-business credit is positive. Outstanding balances rose in the first quarter, as did the average balance outstanding per business. Delinquencies were down and default rates rose slightly, suggesting that credit conditions have peaked as the economy is in a late-cycle expansion. Continuing strength in the macroeconomy will keep small-business credit moving in the near term, along with higher profits from the recently passed tax legislation. Small-business credit will be less certain in the medium to long term as rising wages, interest rates and changes to the tax code take a toll.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q4 2017.
Student loan debt has been increasing year-over-year since the 1990s. Experian Commercial Data Sciences is monitoring the effect student loans have on small-business creation and survival. This paper examines whether or not student debt is hampering the ability to open new businesses and keep them open
Millennials are projected to be the largest generation by the year 2050, according to Pew Research Center. With this projected population growth in mind, Experian wanted to take a closer look at how this generation would affect business by analyzing the trends and behaviors of millennial business owners.
Highlights:
Is your agency considering a data modernization in 2018?
Join Experian and Rhode Island DMV on March 29th 10:00 AM PT / 1:00 PM ET.
We will discuss why modernizations are important in the public sector, common obstacles, and how we worked together to overcome challenges and drive success for RI DMV’s data conversion project in under 6 months. We'll also take you beyond the modernization, and shed some light on how RI is supporting data management proactively.
The overall outlook for small-business credit is positive. Outstanding balances rose in the fourth quarter, as did the average balance outstanding per business. Delinquency and default rates rose slightly, suggesting that credit conditions have loosened. Continuing strength in the macroeconomy will keep small business moving in the near term, along with higher profits from the recently passed tax legislation. Small-business credit will be less certain in the medium to long term as rising wages and tax code changes take a toll.
In response to increasing interest in the mining industry, Experian® completed a review of the coal, natural gas and oil/petroleum industries, along with their impact on small businesses. Depending on the region of the United States, fossil fuel mining is both increasing and decreasing. With the current changes in these industries, the impact on other industries ranges from an increase in new small businesses to an increase in delinquencies. To understand the nuances of the fossil fuel industry, Experian® conducted a further study on Kentucky, West Virginia and North Dakota was done to analyze the impact that industry changes have on the economy of individual states.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q3 2017.
The overall outlook for small-business credit is stable. Outstanding balances on small-business credit declined slightly in the third quarter, continuing a two-year trend. Delinquency and default rates were steady to declining, and business balance sheets continue to improve. Continued improvement in the labor market and economic growth bodes well for credit performance in the short term. Despite the overall optimism, pockets of localized weakness are developing and will warrant observation over the next few quarters.
Most companies are likely to undergo a data migration project at some point. Our 2017 global data benchmark report revealed that 83% of data migrations fail or exceed their budgets and schedules. Given all this business investment, doesn't it make sense to invest in the quality of data being migrated before it costs your organization?
This white paper takes a look at the biggest obstacles in data migrations, how to complete a migration project in time and on budget, and provides a pre-migration impact assessment checklist to ensure your data migration success.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q2 2017.
Financial services firms have vast quantities of data, much of which is used during the course of their day-to-day operations. However, many fail to fully exploit that data, due to a combination of inadequate systems and siloed teams. Not only that, concerns over the quality of that data result in process duplication as teams feel the need to redo reports they have received.
Take a look at how Schroders Bank used Experian Pandora, a data management solution to identify data issues and assure the quality of their investment data.
From data governance to migration to regulatory compliance, financial services organizations have a lot of priorities to juggle. Cabot Credit Management is a market leader in credit management services and looked to a data governance tool to help implement their data governance strategies and meet business objectives.
Read about how Experian Pandora successfully integrated into Cabot's critical business elements and helped them monitor and continuously improve their data in real time.
Credit utilization rates expanded briskly in the first quarter of 2017. Taken with upside risk, which at the moment outweighs downside risk, credit conditions for small businesses are looking up. Rates of severe delinquency are declining broadly, and credit constraints should ease as a result. However, balance growth is threatened by the lack of clarity regarding fiscal policies. Small-business credit will be defined this year by what happens with the potential revisions to government policies and how full or nearly full employment translates into activity for small firms.
As organizations today look to their data to power business opportunities, the role of the chief data officer (CDO) is becoming increasingly mission-critical. While the value a CDO brings to businesses is widely acknowledged by C-level executives, not all CDOs are set up for success. In our latest research report, Experian Data Quality spoke with over 50 CDOs to understand how their roles have changed in recent years, and how the realities of the position may differ from CDOs' expectations.
Small businesses have varying credit needs which evolve as the business matures from inception to maturity. Experian sought to understand what kinds of credit these businesses needed at different stages of the business lifecycle and how lenders could best serve small business by offering right sized capital at the optimal time. The analysis involved a study of trade credit profiles for one million businesses between 2010 and 2016 and the results are surprising and compelling.
By watching this webinar you will learn:
As people age, so do their needs. The same is true for businesses, especially in terms of how they handle credit. A startup company with few customers is likely to need more commercial loans than an established business with a strong customer base and predictable cash flow. On the other hand, a mature company is likely to have many open tradelines with the suppliers with which it has built long-term relationships.
But there are some notable exceptions to this pattern, as we discovered when analyzing the behaviors of commercial customers throughout their life cycles. This whitepaper examines those trends based on 1 million active business credit profiles between 2010 and 2016.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q1 2017.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q4 2016.
Small business credit balances expanded broadly in the fourth quarter driving delinquency rates down. Taken with upside risk, which at the moment outweighs downside risk, credit conditions for small businesses are looking up. Balances are growing in the Southeast and West, and delinquency rates are low throughout the country. The theme for 2017 will be robust balance growth and falling delinquencies. Combined with the prospect of tax reform, small businesses look set to thrive in the near future.
It’s time to start thinking of yourself as an identity-proofing expert. You’ll be grateful when you are confidently authenticating individuals while delivering a great user experience.
This paper provides our perspective on identity proofing and risk-based authentication — and more specifically — how those activities may be leveraged for remote access to information systems. Content provided is intended to highlight current industry conditions, risk-based authentication concepts and best practices, and lastly how our expertise with comprehensive identity proofing and risk-based authentication can help you mitigate risk while delivering a great user experience.
Experian and Moody's Analytics experts present insights from the most recent Experian/Moody's Analytics Main Street Report for Q3 2016.
Small-business credit declined slightly in the third quarter, led by the mining and transportation/utility industries. Businesses have access to plenty of credit, and utilization rates remain low. The low delinquency/bankruptcy environment combined with low utilization rates leads to an overall positive outlook over the next several quarters. However, this optimism could change rapidly if interest rates rise or slow economic growth persists. Agriculture and construction credit remain bright points in the small-business credit outlook. Despite some downside risks, the sectors remain stable and well-positioned for growth.
When businesses face a financial burden, they will prioritize which creditors are essential and which are not. In this webinar, we share research which will help you determine if there is a consistent overall prioritization by industry.
Experian Business Information Services did a data study of 2.5 million small business owner profiles and analyzed the data, comparing small business owners with average consumers. In this webinar Peter Bolin, Director of Consulting & Analytics for Experian shares the results of this research.
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. The results of this research are explained in this whitepaper.
Experian Business Information Services recently concluded a data study to compare the credit profiles of small business owners compared to average consumers. Our Infographic offers some of our key findings.
Experian and economists from Moody's Analytics present a macro-economic review of small business credit health based on Q2 2016 data. Though this webinar you will gain insights on Brexit impact on U.S. small business, thriving construction trends, rising bankruptcy trends in West Virginia and the outlook for the coming quarter.
The Experian/Moody’s Analytics Main Street Report brings deep insight into the overall financial well-being of the small-business landscape. Small-business credit conditions improved in the second quarter. With the exception of some specific segments, delinquency and bankruptcy rates declined. Sentiment among small businesses is positive, with 11 percent planning to increase employment and 26 percent considering additional capital investment. Despite some downside risks, the sectors remain stable and well-positioned for growth.
Last year, mobile made up a third of all U.S. commerce. And in banking, the mobile channel is quickly becoming the customer’s preferred channel. The mobile channel offers many opportunities for your business and your customers — and unfortunately for fraudsters too.
Go beyond understanding fraud protection and the customer experience in your offline and online channels. Give your customers the freedom they need to do anything in any channel, without taking on more risk.
Gain valuable insight and deeper understanding of the complex world of mobile fraud management, effective mobile fraud strategies in practice, and tips for evaluating your mobile fraud strategy.
Experian®, the leading global information services company, and Moody’s Analytics have teamed up to develop the new Experian/Moody’s Analytics Main Street Report. Unlike previous quarterly analyses, the new report brings deeper insight into the overall financial well-being of the small-business landscape, as well as providing commentary around what certain trends mean for credit grantors and the small-business community as a whole. Key factors of the Main Street Report include a combination of business credit data (credit balances, delinquency rates, utilization rates, etc.) and macroeconomic information (employment rates, income, retail sales, investments, etc.).
Experian and Moody's Analytics present insights from the most recent Experian/Moody's Analytics Main Street Report for Q1 2016.
Experian Business Information Services recently concluded a data study to explore how minority-owned small businesses are faring in today’s economy. The analysis highlights credit characteristics, industry preferences and demographic attributes of business owners.
Key topics include:
As a group, minority-owned businesses receive far fewer commercial loans and have significantly fewer trade accounts than the general small-business population. At the same time, minority-owned businesses have average business credit scores that should qualify them as viable prospective borrowers. This whitepaper highlights key findings from a recent analysis of minority-owned business data. They include a review of the study, the major insights revealed, and suggestions for how a change in common business practices can deliver “win-win” outcomes for minority businesses and the lenders that extend them credit.
As part of our ongoing analytical series on small business, Experian just completed a data study focused on U.S. minority owned businesses. This Infographic offers a summary of our findings.
In this webinar Peter Bolin, Director of Consulting & Analytics for Experian shares the results of his research, revealing the statistical differences between small business owners in each of the major political parties. We explore the kinds of industries jobs are being created, also how small business owner credit scores compare as we gear up for the coming election season.
Webinar topics:
Companies are collecting more data than ever before on prospects and customers alike, but are having trouble making the most of that data. Information is often bad or incomplete, making it difficult to answer common questions like - How many customers do I actually have? Which ones should I upsell to? What channels should I be using for acquisition? What’s the real opportunity out there? Watch this on-demand webinar to learn best practices for driving the most value from your business marketing data, and gain insights to maximize results.
The evolving landscape of online marketplace lending and the future of the industry.
With consumers immersed in the holiday season, retailers enjoy the constant swiping of credit cards. As a lender, shopping means both opportunity and risk. Credit utilization peaks this time of year, but high balances result in consumers seeking greater card deals. To capitalize on this prime season to grow, and protect from attrition, leveraging specific models and/or tools can help identify when to lower APRs, sweeten rewards and increase credit limits for specific consumers. Check out our holiday infographic illustrating post-holiday trends and solutions.
In 2008, a short two years after the first online marketplace lenders opened for business, the Great Recession began to wreak havoc on worldwide financial markets. Small businesses struggled to survive, banks failed and access to capital was limited. More online lenders saw an opportunity and opend for business. These technology-driven newcomers hired an army of data scientists, coders and digital marketers. In the fall of 2015 the innovation, industry disruption and regulatory uncertainty that characterize this dynamic sector led Experian to produce a series of articles focusing on different aspects of online marketplace lending. This report contains those articles.
While most in the political arena believe Independents and Republicans share many of the same political views, small-business owners who identify as one of the two major political parties also share similarities outside of politics. Business owners who identify as Independents relate more closely to Republicans than to Democrats in a number of areas, including average personal income, education level and credit usage.
The similarities between Independent and Republican small-business owners are a few of the key findings included in a recent Experian analysis examining the characteristics of small-business owners based on political affiliation. In this whitepaper, we go in depth on these findings.
Kathryn Ebner, head of capital markets for Credibly shares her perspectives about online marketplace lending, innovation and where the industry is headed.
Andrew Smith, Partner with Covington & Burling, LLC shares his perspectives with Experian about regulatory and legal issues facing online marketplace lenders.
Peter Renton, Founder of Lend Academy shares shares his perspectives on regulatory change, innovation and what's driving growth in small business lending via online marketplace lenders.
Sam Hodges, Co-Founder of Funding Circle shares his perspectives with Experian about the online marketplace lending industry, what makes Funding Circle unique, and what lays ahead for the industry.
In this webinar, Experian provided a 360-degree industry view of the fast-growing Online Marketplace Lending industry. Our experts help explain go-to-market strategies, self-regulation vs. government regulation and why this fintech-driven segment of financial services is attracting so much attention from investors, banks and the small businesses they lend to.
Presenters:
Gavin Harding, Sr. Consultant, Experian
Tony Hadley, SVP Government and Regulatory Affairs, Experian
Peter Renton, Founder, Lend Academy
Virtually unheard of just 10 years ago, Web-based companies that offer funding options beyond traditional bank loans have grown considerably. Small businesses — drawn by the easy application process and flexible repayment terms — have become increasingly comfortable working with online lenders, which offer rapid access to capital, a wide array of niche products and a low-friction customer experience. In this article we discuss emerging trends in online marketplace lending we can expect to see over the next several years. You can also find the article on our blog.
When it comes to matching small-business borrowers to the most appropriate lenders, a new breed of marketplace matchmaker or loan aggregator is finding success bringing the two parties together. Aggregators compare the needs and qualifications of borrowers with lenders in their network matching their target criteria. Think of it as speed dating for business financing. This article explores the various go-to-market strategies and tactics employed by loan aggregators. You can also find our blog post for more details here.
When attempting to determine a small business's credit risk, which is more useful, the company's credit history or its owner's? For decades, conventional wisdom has held that a business owner's personal credit history alone can be used to judge his or her company's creditworthiness. Many lenders have tended to see small businesses and small-business owners as one and the same, their funds so frequently commingled as to make the two entities virtually indistinguishable. However, this strategy is not always successful. A business owner with good personal credit still can have a failing company, and someone whose personal credit is messy still can own a successful business. Since a bad call can cost a creditor thousands, perhaps tens of thousands, of dollars, Experian® decided to test the conventional wisdom for itself.
As an industry, marketplace lending has enjoyed considerable success over the past five years. In some entrepreneurial circles, names such as Lending Club, Fundera, Creditera and Funding Circle are as well-known as Citibank, Bank of America and Wells Fargo. Many full-service banks see these newer online platforms as opportunities to increase their own efficiencies as well as a way to capture future long-term customers. In this article we explore how financial institutions are aligning with online marketplace lenders. This article is also published on our blog.
The evolution of commercial lending over the past seven years has certainly had its share of ups and downs. Remember the ominous days leading up to the financial crisis when it seemed like everything was teetering on collapse? During that uncertain time, commercial lenders took a lot of criticism from several directions. On top of those worries, a new channel emerged, online marketplace lending. In this article, Charles H. Green from Advice On Loan shares his perspectives about how financial institutions can play to their strength, and play to win with online marketplace lenders. You can also read this article on our blog.
Online lenders represent a valuable resource for small businesses in need of working capital. Also known as "alternative" lenders, they are particularly useful to new businesses lacking the long, detailed credit history that banks and traditional lenders usually require to underwrite a commercial loan. In this article we explore the various new data sources being used by online lenders to make lending decisions. You can also read this article on our blog.
The Responsible Business Lending Coalition, a group of non-bank small-business lenders announced a self-regulatory program that is designed to bring greater clarity and consistency to its industry's pricing and consumer protections. In this paper we talk about self-regulation in the online marketplace lending sector and what the Small Business Borrower's Bill of Rights is all about. You can also read this article on our blog.
Online marketplace lenders, have caused quite a stir over the past couple of years by offering alternative financing products to serve consumers and businesses. But what's so radically different about what they do, other than using a Website rather than a drive-up branch to initiate a financial relationship? This article explores what sets online marketplace lenders from traditional financial institutions. You can also read this article on our blog.
Over the past two to three years, online marketplace lending (OML) — also called alternative lending — has made dramatic changes in the landscape of small business lending. In this paper, the first in a series of eight articles, Experian experts discuss this exploding fin-tech-driven market from several angles. You can also read our blog post - How online marketplace lenders are changing the rules of small-business finance.
In this update we provide an overview of Commercial Risk Database Plus along with data quality improvement statistics.
In this update we report on improvements in our data coverage and provide a progress report on alternate data sources.
Experian Business Information Services and our Decision Analytics team recently completed a data study on the formation of startups between 2010 and 2014. This Infographic summarizes some of the findings in the study.
Turning the page from recovery to growth, small businesses continue to have access to a wider availability of credit, as credit conditions reached the highest level on record, improving for the third consecutive quarter. Outstanding credit balances grew by 2.2 percent from a year ago, while delinquency rates declined to a cyclical low of 8.5 percent, both of which contributed to the improvement in the index.
The Rekindling Success white paper uncovers your portfolio's hidden potential using advanced triggers to prevent risk
Identify the Best Near-Prime Prospects
Are you excluding significant revenue by missing out on profitable segments within the broader consumer spectrum? As lenders aggressively seek to grow their portfolios, inclusion of specific micro-segmentation tools and risk models make it possible to identify highly responsive, low-risk prospects.
Watch the webinar now to hear analyses and the resulting strategy to target more effectively across a broader credit spectrum of consumers while mitigating risk. You will learn how to identify the most credit-worthy, near-prime prospects.
Understanding a consumer's past behavior s crucial to developing a strategy for the future.
The value of trended data is that it allows you to get the full picture of your customers: both short-term changes — the past one, two and three months — and an extended view up to 24 months prior. How can trended data offer deeper behavioral transparency and aid in targeting, underwriting and retention decisions?
View this on-demand Webinar and find out how trended data can be used to:
Learn how you can add depth to a credit report and give your customers credit for their history. Watch now.
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