Equifax Launches Cloud-Based Data Network for Small Business Lending

20 Sep, 2024

Equifax Launches Cloud-Based Data Network for Small Business Lending

Equifax has introduced the Merchant Data Network, a cloud-based solution aimed at enhancing financial insights into U.S. small businesses. By combining the Equifax Commercial Financial Network with aggregated credit card transaction data from providers like Fiserv, the network offers deeper visibility into more than 5.5 million businesses. It leverages over 50 billion annual credit card transactions to provide up to 60 months of transaction history, improving commercial scoring accuracy by more than eight percent.

The Merchant Data Network supports lenders by offering key sales insights for businesses with limited traditional credit history. This helps verify income, accelerates the underwriting process, and boosts confidence in assessing commercial risk. It also aids in identifying potential fraud and business failure, enhancing business sustainability evaluations.

By advancing access to capital, especially for small businesses, the network aims to facilitate smarter lending decisions. Equifax plans to expand the network’s data insights with more contributors in the future, continuing its commitment to supporting small businesses with solutions like the Business Verification Solution and OneScore for Commercial. These efforts help create a more complete financial picture, ensuring small businesses have the credit opportunities they need to grow and thrive.