Small Business Financial ExchangeSadaf Naz2023-03-11T10:14:23+00:00
SMALL BUSINESS FINANCIAL EXCHANGE
SMALL BUSINESS FINANCIAL EXCHANGE
What is the Small Business Financial Exchange?
The SBFE is a trade association striving to be the trusted advocate for the safe and secure growth of small businesses.
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
Small business lenders and other types of companies are becoming SBFE members.
They provide the SBFE with their commercial performance data and this data is secured from marketing use.
This knowledge is then normalized by the SBFE so that they can make better comparisons.
SBFE Members and Data
There are about 135 members in the SBFE , including 420 total portfolios, and conventional financial lenders contribute to 69 percent of these.
These huge numbers help to make the SBFE a small business lending champion.
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.
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
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.
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.
The data available from SBFE about your company might open up potential funding opportunities that would not otherwise be available.
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.
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.
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.
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.
According to the Bureau of Labor and Statistics, more than half of businesses will fail in 5 years or less. In addition, 82% of business failures are due to issues with cash flow, 90% of business owners agree that loans are not easily available, and 51% of small business owners worry weekly about capital.