Small Business Financial Exchange
What is the Small Business Financial Exchange?
The SBFE is a trade group that aspires to be a trustworthy voice for the safe and secure development of small businesses. They do this by gathering and safeguarding the largest aggregation of small business payment data currently available in the United States, as well as using the data’s ability to assist the banking community in constructing a true and accurate picture of small business credit health. Essentially, they collect data from members and then interpret it.
Membership in the SBFE
SBFE affiliates include small business lenders and various forms of businesses. They give the SBFE their commercial output info, which is kept private and not used for marketing purposes. The SBFE then normalizes this information so that they can allow more accurate comparisons.
SBFE Members and Data
There are approximately 135 participants, including 420 total portfolios, of which traditional financial lenders account for 69 percent. These massive figures contribute to the SBFE’s status as a small business lending champion.
Membership
Anyone who has the ability to disclose details about their small business loans to the SBFE is eligible to join. Members include insurers, credit unions, and alternative lenders, among other financial institutions. Doing business with trade partners can be beneficial, but it can also be harmful if done incorrectly. When you do business with SBFE representatives, you eliminate the possibility of not being able to get business credit. However, if you do not properly handle your company, it would be difficult for the report members to visit you. Members agree to report both positive and negative information simultaneously. For information, visit: sbfe.org/small-business-resources.
SBFE Members (Lenders and Credit Providers)
The SBFE includes some of the most well-known credit suppliers and lenders. American Express, Bank of America, Online Lender Foundation, and Wells Fargo are among them.
SBFE Certified Members
The SBFE monitors data contribution consistency and ensures provider compliance. D&B, Equifax, Experian, and LexisNexis are among the four participants that have been certified. These organizations use SBFE to create risk products that are only available to members.
Certified Vendors
Credit providers are companies that have partnered with the Small Business Finance Exchange to provide credit to small businesses. The SBFE data that credit vendors accumulate is distributed. They do this by creating credit check products based on the information provided by the Small Business Finance Exchange. Credit vendors then report the information to representatives who are looking for a credit report on a company that is listed. Lenders have access to other credit institutions, so when they join the SBFE and use one of these credit vendors, they gain access to the vendor’s own data. Additionally, they obtain information from the Small Business Finance Exchange’s records.
SBA Members and Data Products
Members may purchase data-driven products from the SBFE. These products are manufactured and sold by SBFE Accredited Vendors. These commodities are then used to make credit decisions. They are also used to track portfolios. Visit sbfe.org/certified-vendors for more information.
Why Should Merchant Acquirers Become Members?
By enhancing a merchant’s risk control capacity, SBFE data will help them price their offerings more effectively. They would be able to see recent loan activities as well as a merchant’s debt status. Without the use of SBFE data-driven products, early warning signals that a retailer may be in financial difficulty may go unnoticed. Merchants may use SBFE data-driven products to validate the life of a small business. It is possible to obtain information from one of the largest archives of commercial data in the United States, including name, address, and contact information. For more information, visit: sbfe.org/membership/merchant-acquirers
What Kind of Data do They Have on a Business?
Identifying details such as the company name, DUNS number, EIN number, address, and NAICS code is available to merchants. Positive and negative payment information, credit account caps, lease payment histories, and credit card payment history are all available to merchants.
How the Small Business Finance Exchange Can Help Your Business
The SBFE can assist you in establishing company credit by doing business with SBFE members. Then you know it’s your stuff being recorded. Positively reported information establishes creditworthiness in the corporate world. The SBFE may also assist you in expanding your market. Better market credit opens up more ways to obtain funds that can be used to expand and improve the company. You may be able to get more money through the SBFE. The information provided by SBFE about your business could lead to funding opportunities that would not have been possible otherwise. Clients who are given credit will assist you in making better loan decisions.
Which Actions Can a Business Take
As a small enterprise, you are responsible for your credit. You have control of what information appears on your company credit report. You can pay your bills on time on a daily basis, do business with SBFE affiliates, and encourage companies you do business with to join the SBFE. You can access the SBFE if you are licensed, but you cannot self-report your own results. If you are lacking business credit, joining the SBFE will help you make smarter credit choices for your company and add more credit. Obtaining dealer credit, obtaining business credit cards, filing for Credit Line Hybrid, and tracking your business credit details are all examples of business credit behavior.
Credit Monitoring
Credit monitoring can be done in a variety of ways. One option is to request a business credit report from one of the business credit rating services, such as D&B or Equifax, but this is costly. Joining a credit management service, such as Credit Suite’s, is a more cost-effective alternative. Get continuous access to your study’s results, including your credit score and what influences it. Visit creditsuite.com/market-check-monitoring to spend 90% less than you will for a business credit reporting agency. Use the information you get from credit management to look at new ways to build your company credit and correct any mistakes. Give the department a detailed breakdown of what’s incorrect and what the correct data is. Send in copies of all available support products and retain the originals.
Recap
The Small Business Financial Exchange is a non-profit organization that collects business information. Members of the SBFE share knowledge to gain access to more market details. The SBFE provides risk products to help its members make better credit and lending choices. The SBFE has accredited the three major industry CRAs. The SBFE can help you create business credit, but it can also harm you if you have derogatory items on your credit sheet. When you do business with SBFE representatives, you can be assured that your fees will be registered. If you lend money, the SBFE’s knowledge will help you from making bad lending decisions.
