SMALL BUSINESS FINANCIAL EXCHANGE
SMALL BUSINESS FINANCIAL EXCHANGE
What is the Small Business Financial Exchange?
The SBFE
The SBFE is a trade association striving to be the trusted advocate for the safe and secure growth of small businesses.
Lending Industry
They do this by gathering and protecting the largest aggregation of small business payment data in the US today and leveraging the power of that data to help the lending industry build a true and accurate picture of small business credit health.
Data From Members
Essentially, they collect data from members and then interpret it.
Membership in the SBFE
SBFE Members
Small business lenders and other types of companies are becoming SBFE members.
Commercial Performance
They provide the SBFE with their commercial performance data and this data is secured from marketing use.
Better Comparisons
This knowledge is then normalized by the SBFE so that they can make better comparisons.
SBFE Members and Data
Total Portfolios
There are about 135 members in the SBFE , including 420 total portfolios, and conventional financial lenders contribute to 69 percent of these.
Business Lending
These huge numbers help to make the SBFE a small business lending champion.
Membership
- Anyone who has the capacity to report information to the SBFE about their small business lending may become a member of the SBFE.
- Both types of financial institutions, including banks, credit unions and alternative lenders, are members.
Doing business with exchange partners will benefit you, but if you do not do it correctly, it can also harm you.
- When you do business with members of the SBFE, you remove the risk of not getting any business credit.
- However, if you do not treat your business properly, it will not be favorable for the report representatives to get to your business.
- Members agree to report positive and negative facts at the same time.
SBFE Members (Lenders and Credit Providers)
Members
Some of the best-known business credit providers and lenders are members of the SBFE.
American Express
They include American Express, Bank of America, Online Lender Fundation, and Wells Fargo.
SBFE Certified Members
SBFE Controls
The SBFE controls the consistency of the data contribution and verifies vendor compliance.
Lexisnexis
There are four members who are accredited, including D&B, Equifax, Experian, and LexisNexis.
Using SBFE
These organizations develop risk products exclusively for members, using SBFE.
Certified Vendors
- Credit vendors are agencies that have a partnership with the Small Business Finance Exchange.
- Credit vendors distribute the SBFE data that they collect.
- They do this by designing items for business credit review using the knowledge given by the Small Business Finance Exchange.
- Credit vendors then report the details to members seeking a business credit report on an enterprise that is included.
- There are other business credit institutions open to lenders, but when they are a member of the SBFE and use one of these business credit vendors, they get the benefit of the vendor’s own information.
- Plus they get information from the data received from the Small Business Finance Exchange.
SBA Members and Data Products
- Sbfe Data-driven Goods May Be Purchased By Members.
- These Products Are Produced By Sbfe Accredited Vendors And Offered By Them.
- These Commodities Are Then Used For Decision-making On Business Credit.
They Are Used To Screen Portfolios As Well. For More Information, Visit: SBFE.ORG/CERTIFIED-VENDORS
Why Should Merchant Acquirers Become Members?
SBFE
Borrowing Activity
They would be able to view the current activity of borrowing and a merchant’s debt status.
Without SBFE
The early warning signs that a merchant may be in financial trouble might be missing without the use of SBFE data-driven products.
Data-driven Products
To verify the existence of a small company, merchants may use SBFE data-driven products.
United States Business
Information on one of the largest repositories of commercial data in U.S. industry, including name, address and contact information, can be accessed.
Visit
For more information, Visit: sbfe.org/membership/merchant-acquirers
What Kind of Data do They Have on a Business?
Naics Code
Merchants have access identifying information such as business name, DUNS number, EIN number, address, and NAICS code.
Card Payment History
Merchants also have positive and negative payment details, credit account limits, lease payment payment records, and credit card payment history.
How the Small Business Finance Exchange Can Help Your Business
SBFE Representatives
By doing business with SBFE representatives, the SBFE will help you create business credit.
Positive Recorded Knowledge
Then you know it’s reporting your stuff. Positive recorded knowledge creates business credit.
Grow Your Business
The SBFE is also able to help you grow your business.
Expanded Funding
Via the SBFE, you might have expanded funding options.
Better Business Credit
Better business credit provides more opportunities for access to funds that can be used to grow and develop your business with these funds.
Potential Funding
The data available from SBFE about your company might open up potential funding opportunities that would not otherwise be available.
Lending Decisions
If you extend business credit to clients, they will help you make better lending decisions.
Which Actions Can a Business Take
- You are accountable for your business credit as a small company. What data ends up on your business credit sheet, you power.
- You will regularly pay your bills on time, do business with members of the SBFE, and invite businesses you do business with to join the SBFE.
- If you are registered, you can enter the SBFE, but your own data can not be self-reported.
- Through joining the SBFE, if you are lacking in that area, you can make better credit decisions for your business and add some credit.
- A company may take business credit actions that include obtaining vendor credit, obtaining business credit cards, applying for Credit Line Hybrid, and monitoring your business credit information.
Credit Monitoring
- There are multiple ways to monitor business credit. One choice is to ask one of the business credit reporting agencies, including D&B or Equifax, for a business credit report, however this is expensive.
- Joining a credit monitoring program, like the one given by Credit Suite, is a more affordable option.
- Get continuous access, including your credit score and what affects it, to the data on your study.
You can pay 90% less than it would cost you through the business CRA’s through visiting: creditsuite.com/business-credit-monitoring
- Use the data you obtain from credit monitoring to search for ways to construct your business credit and refute any errors.
- Give a thorough summary of what is wrong to the department and inform them what the right data is. Send in copies of all available support products and retain the originals.
Recap
- The Small Business Financial Exchange is a not-for-profit enterprise that gathers business data.
- To get access to more business data, members of the SBFE exchange information.
- To help its members make informed business credit and lending decisions, the SBFE offers risk items.
- The three big business CRAs are certified members of the SBFE.
- The SBFE will help you build business credit, but if there are derogatories on your business credit report, it can also hurt you.
- Doing business with SBFE members assures your payments are being reported.
- If you loan money, information from the SBFE can help keep you from making poor lending decisions.
