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Equifax Launches New Merchant Data Network: A Game-Changer for Small Business Financial Insights

ATLANTA, Sept. 18, 2024 /PRNewswire/ — Equifax® (NYSE: EFX) has proudly announced the launch of its innovative Merchant Data Network, a significant development built on the robust Equifax Cloud™. This state-of-the-art network is designed to enhance transparency regarding the financial profiles of small businesses across the United States. In a financial landscape that is constantly shifting, lenders and service providers are increasingly finding it critical to have a clear understanding of the financial health of small businesses before extending capital. Research conducted by Equifax indicates that this powerful network can enhance traditional commercial scoring metrics by over eight percent, thanks to the vast insights it provides into the revenue small firms generate from aggregated credit card transactions conducted at the point of sale.

Collaboration for Comprehensive Data

The Merchant Data Network is a collaborative initiative combining the strengths of the Equifax Commercial Financial Network with crucial aggregated credit card transaction data sourced from Fiserv and other leading data providers. As a result, this network grants unprecedented visibility to over 5.5 million small businesses through an analytical lens that covers more than 50 billion credit card transactions processed annually.

According to Sal Hazday, Senior Vice President and General Manager of Equifax U.S. Information Solutions (USIS) Commercial Business, "In the United States, small businesses play a crucial role, employing nearly half of the nation’s workforce. Therefore, understanding their financial health is critical to fostering the overall stability of our economy. By facilitating new credit opportunities for small businesses, we can significantly impact their growth and sustainability. The Merchant Data Network, in partnership with organizations like Fiserv, aims to create the most comprehensive financial profiles of businesses available, allowing lenders to make informed decisions that nurture the entrepreneurial ecosystem."

Accelerated Decision-Making for Lenders

Equifax’s Merchant Data Network is poised to revolutionize the lending process for small businesses. By providing access to up to 60 months of aggregated credit card transaction history, it equips lenders with essential sales insights for businesses that may otherwise have limited traditional credit histories. This aggregation of credit card transaction data serves dual purposes: it validates merchant income while establishing a business’s capacity for repayment. This newfound transparency can complement additional business data, including firmographics and credit history, leading to multiple advantages:

• Streamlined Verification: Expediting the verification process for businesses while simplifying the underwriting process considerably.
• Improved Scoring: Raising the scoring potential for merchants lacking traditional trade or firmographic data.
• Fraud and Failure Indicators: Identifying early warning signals of business fraud or potential failures.
• Calibrated Risk Assessment: Enhancing confidence in evaluating business sustainability and mitigating commercial risk.

The Importance of Access to Capital

In today’s challenging economic environment, access to capital for small businesses is more crucial than ever. Prasanna Dhore, Chief Data Officer and President of Data Commerce Solutions at Fiserv, emphasizes this point: "The current climate demands that we prioritize access to capital, particularly for small enterprises. By contributing low-latency payment data to business credit reports, we are enabling Equifax to furnish even deeper insights into small businesses’ financial health. This empowerment allows lenders to make more informed loan decisions, thereby improving credit access for businesses that grapple with limited credit histories."

Future Expansion and the Role of AI legalese decoder

Equifax is committed to enhancing the insights available regarding small business revenues through the Merchant Data Network. The company aims to integrate additional contributors in the future, which will further support its mission to provide greater credit access for small businesses. This initiative aligns seamlessly with Equifax’s development of innovative commercial solutions, which include the Business Verification Solution and OneScore for Commercial.

In this evolving landscape, businesses may face complex regulatory environments when it comes to data utilization and credit access. This is where AI legalese decoder can be an invaluable asset. By utilizing AI-powered technology, the Decoder can help small businesses understand intricate legal documents related to financial agreements, partnerships, and lending policies. This understanding can empower entrepreneurs to make decisions that are not only informed but also compliant with applicable regulations, further enhancing their chances of securing needed funding.

About Equifax

Equifax (NYSE: EFX) is dedicated to the belief that knowledge drives progress. Operating as a global data, analytics, and technology powerhouse, Equifax plays an essential role in the global economy by helping various stakeholders—including financial institutions, companies, employers, and government agencies—make critical decisions with increased confidence. With a unique blend of differentiated data, advanced analytics, and innovative cloud technology, Equifax delivers insights that facilitate progression and development across the economic landscape. With headquarters in Atlanta and a workforce of nearly 15,000 employees worldwide, Equifax’s reach extends across 24 countries, including North America, Central and South America, Europe, and the Asia Pacific region. For further details, visit Equifax.com.

For More Information

For inquiries, please reach out to Tiffany Smith at Equifax:

Email: [Email protected]

SOURCE Equifax Inc.

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