Studies have repeatedly shown that lenders regularly misjudge the quality of small business applicants. This occurs not because lenders are bad at assessing information; rather this shortcoming is due to the lack of relevant information. While there are over 25 million small businesses in the U.S., the traditional credit bureaus cover only a fraction of them, which leaves a gap in lenders’ due diligence processes.
PayNet helps fill this gap by rating over $900 billion in loans, leases and other obligations on millions of small businesses not covered by any other service. Moreover, having “comparable credit,” how an applicant has paid on prior loan and lease obligations, provides more relevant information which improves a lender’s due diligence. Studies show that decisions based on term debt data outperform trade data debt by up to 40%. This incremental insight makes a big financial impact on a lender’s profitability by increasing bookings and reducing credit losses.
Transactional Underwriting Products: