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.

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.