Credit decisioning platform Uplinq has partnered with Visa to offer small Businesses in the US and Canada access to Credit. The collaboration aims to help lenders reduce risk while providing fair credit to small business owners. Uplinq’s advanced credit decisioning technology goes beyond traditional financials and credit scores to better understand the entire ecosystem of a business before deciding on lending. The platform leverages billions of alternative data sets, including market and environmental conditions from over 150 countries. Uplinq’s technology has supported over $1.4 trillion in underwritten loans globally. Visa acknowledges the importance of fast access to working capital, particularly for small businesses that play a fundamental role in the global economy. The partnership will introduce Uplinq’s technology to financial institution clients in the US and Canada, ultimately assisting more small businesses in both countries to access credit.

This collaboration addresses the need for small business lenders to think beyond standard considerations for loans. Many financial institutions rely solely on personal FICO scores or business credit scores for underwriting. However, using personal scores alone is limiting as it does not provide a comprehensive picture of a borrower’s creditworthiness. Visa’s Head of Small Business, Matt Baker, highlights the competitive advantage of looking beyond traditional scores. Small businesses are more likely to spend more with a higher credit limit, and access to credit can even lead them to switch financial institutions.

The recent S&P Global Flash U.S Composite PMI indicates increased pressure on small businesses. Manufacturing decreased, and service providers experienced slow growth due to weakened client demand. The reduction in output suggests that companies are reining in their expansion plans due to concerns about end market demand in an uncertain environment.

Sources:
– PYMNTS: Link to article
– Visa Commercial Solutions: Link to article
– Uplinq: Link to website

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