5 ways cash flow data helps SMB lenders make better financial decisions

A holistic view of borrowers’ creditworthiness is vital to the success of small business lenders. While traditional credit bureau data offers a wide range of insights, it can fall short of providing a complete picture, especially for borrowers with limited credit histories or those who rely on personal credit to get their business off the ground. This can lead to lenders missing out on good loans and reduced access to credit for financially healthy businesses.

To address this, cash flow data from bank statements, tax forms, and other documents can provide valuable context alongside credit bureau data. This added insight helps expand access to credit for those who may be disqualified using traditional methods and can help lenders reduce risk and make faster, more informed decisions based on a complete picture of financial health.