Small businesses account for over 60% of net new jobs in the United States. As the crisis caused by COVID-19 hopefully abates, small businesses will require capital to form, to operate, and to grow. As lenders begin to scale up their activity, forward-thinking leaders will be wise to consider how they can evaluate borrowers in a more complete and nuanced way. This is essential for making capital available while also managing risk amidst volatility. Through analyzing an expanded set of data, over a longer period of time, in greater detail, lenders can make high-quality decisions. If they can do this in an efficient and automated way while maintaining a pleasant customer experience, significant value will be created for lending companies, SMEs, and the overall economy. It is critical for lenders to develop a nuanced understanding of customers’ business dynamics and future prospects. Ocrolus offers an extensive set of analytical metrics for use in small business underwriting and are now augmenting and enhancing them with insights specifically geared towards recovery. Bank data is particularly important, as lenders will want to understand cash balances, revenue, and expenses. Several important questions can be answered with this information. In addition to bank data, lenders may also seek to examine payroll information, tax documents, financial statements, and personal/corporate identity verification documents.

https://www.ocrolus.com/blog/new-analytics-for-small-business-lending/?utm_content=132671925&hss_channel=lcp-3651177