Credit Strategy
LinkedIn
Twitter
0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles


To view more free articles, please register

Free registration or Login

Equifax aims to support SME lending

Equifax has launched a new solution to support the government Commercial Credit Data Sharing (CCDS) initiative, seeking to stimulate competition and encourage new entrants in SME lending, thereby addressing the shortfall in access to finance.


Amber-Ainsley   Pritchard

Share on Twitter Linkedin black
Amber-Ainsley   Pritchard
Share on Twitter Linkedin black

The solution will give lenders a comprehensive picture of a businesses’ financial health to facilitate faster and more informed lending decisions.

 

As a government designated credit reference agency under the data sharing scheme, Equifax has access to new data sets from leading business banks, including a view of cash flow activity, debit and credit turnover, and minimum and maximum average balances.

 

The data will be provided to lenders through Equifax Business Insights, which blends commercial and consumer insights for the commercial lending and credit market to optimise underwriting, lending and validation processes.

 

Equifax said the additional data will be a particular benefit to SMEs who only occasionally apply for finance. With a clearer view on whether businesses can afford repayments, banks and non-bank lenders will be able to offer SMEs more competitive loans.

 

The new solution also enables lenders to monitor a customer’s financial status, alerting them early to any potential problems with repayments, and identifying the most suitable course of action. This facilitates the requirements of the new lending standards to better support SMEs in times of financial stress.

 

Nic Beishon, head of commercial at Equifax, said: “CCDS is a game changer for many businesses who have the financial ability to repay a loan, but are currently either denied it, or left in limbo when a lack of information leaves banks unable to make a timely decision. The new data overcomes this issue by providing an in-depth view of a business’ financial activity than has ever been accessible before.

 

“Combined with other industry initiatives, such as Open Banking and the Payments Services Directive 2, CCDS forms the foundation to restructure the SME lending market and help the sector grow.

 

“We will be using the data in a variety of ways to create new products for the market, helping lenders better evaluate loan applications. Whether a business needs finance to expand, invest in new technology or open a new office, they will now be able to get faster decisions to help make their plans a reality.”

Share on Twitter Linkedin black
Add New Comment

YOU MIGHT ALSO LIKE

Calum Fuller joins Credit Strategy as editor

Shard Media Group has appointed Calum Fuller as editor of Credit Strategy, succeeding Marcel Le Gouais who is taking on the role of consulting editor

FCA calls for input on using tech in regulatory reporting

The Financial Conduct Authority (FCA) has launched a call for input on the use of technology to achieve smarter regulatory reporting

Half a million households at risk of negative equity

If house prices drop to the same levels of 2008, nearly 500,000 households would be at risk of negative equity, warns mortgage servicer Computershare

FCA action sees loan shark jailed

A convicted illegal money lender has been sentenced to prison and issued with the Financial Conduct Authority’s (FCA) first Serious Crime Prevention Order (SCPO)

The CS Interview

The patriot

The patriot

Features

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award
Share on TwitterLinkedin black

Ahead of the curve: Five reasons why Intelligent Environments secured the Best Collections Technology Award

Opinion

"There are upcoming opportunities for both government and regulators to step up and deliver meaningful change"

"There are upcoming opportunities for both government and regulators to step up and deliver meaningful change"

Credit 500 - 2017/2018

Will you help to shape the next Credit 500?
Share on TwitterLinkedin black

Will you help to shape the next Credit 500?

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group