IDC describes how new market entrants are offering employment and income verification alternatives to address some of the key challenges facing lenders today.

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.

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.

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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.