Business Credit Scores and the FI Opportunity
- Date:November 30, 2023
- Author(s):
- Ian Benton
- Report Details: 6 pages, 4 graphics
- Research Topic(s):
- Digital Banking
- Small Business
- PAID CONTENT
Overview
Business credit scores are important components in financial management for small businesses, enabling them to secure financing, obtain credit cards, and access trade credit at large suppliers. But credit scores remain underused and misunderstood by business owners, with only 38% aware of their current score. This perception gap means entrepreneurs are navigating financial waters with a blind spot regarding how their business behaviors influence credit availability and terms, potentially restricting their growth and access to capital.
This is a clarion call for banks to step into an advisory role. Financial institutions that bridge this knowledge gap can transform the borrowing experience and guide business owners to improve creditworthiness and broader financial opportunities. Banks that integrate credit monitoring and education within their authenticated online and mobile platforms can position themselves as strategic partners, crucial in deepening relationships and advancing the financial acumen and success of small-business clients.
Companies Mentioned:
Bank of America, Dun & Bradstreet, Experian, Equifax, FICO, TransUnion, VantageScore
Learn More About This Report & Javelin
Related content
How Accountants Shape Business Finances, And What Banks Can Do to Help
Running a small business starts out as a personal endeavor, but sooner or later complexity creeps in and an accountant is brought on board. Yet there’s no playbook for how to manag...
Beyond Auto Loans: Opportunities for Lenders to Own the Car Buying Journey
Banks and credit unions in the auto financing market are under threat. Digitalization has profoundly refashioned how consumers shop for cars, line up financing, and pay off their l...
Security Centers in Digital Banking: How to Tell an Empowering Story of Prevention, Detection, and Resolution
Javelin Strategy & Research’s analysis of security centers at seven top-performing financial institutions reveals widespread gaps in empowerment features and a failure to tell a co...
Make informed decisions in a digital financial world