New business formation strong, making accurate credit risk assessment crucial
I’m excited to share the current Experian Commercial Pulse Report with you. I have the opportunity each week to analyze data on the millions of U.S. small businesses in Experian’s database and discover actionable insights that benefit our clients. Making these discoveries is rewarding work, and we utilize these insights to guide our recommendations. I thought I would share what I am watching through Experian’s bi-weekly Commercial Pulse Report (just bookmark the link; we will update it on a bi-weekly basis).
This week’s report includes a study about the predictive nature of different credit scores, and how well a consumer risk score versus a commercial risk score or a blended risk score works to predict the future risk of a small business.
What I am watching:
- Unemployment increased to 4.1% in June, the first time over 4% since November 2021.
- The U.S. economy added 206K new jobs in June while job-openings and job-quits continue to trend downward.
- 424K new businesses opened in May. The high level of new businesses opening makes it critical for lenders to accurately assess credit risk.
That’s a quick take – Download the latest report.
