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 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.

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:

• Key economic outcomes of a V-, U-, and W-shaped recovery
• Key sectors at risk during the global pandemic
• Government and fiscal policy measures