Experian India launches Business Credit Report to help sole proprietors assess their firms’ financial heath

Experian, the world’s leading global information services company has launched a Business Credit Report in India that will benefit both sole proprietors as well as fintechs servicing these proprietors. The newly launched solution allows proprietors to check their credit report on the websites of B2B fintech players within seconds. It also enables fintechs to provide personalised financial solutions. The seamless process to get a business credit report requires no documentation, thus removing friction and building a great customer experience.

Fintechs have played a significant role in financial inclusion by offering credit to proprietors. However, there have been two major roadblocks faced by fintechs when it comes to making the best lending decisions – cost to acquire new customers which has increased over the last few years, and analysing credit information of sole proprietors timely and seamlessly. With this solution, sole proprietors can gain access to their Business Credit Reports in real-time thus enabling fintech partners to provide faster and better access to credit. This report is a comprehensive record of a proprietor’s debt-related exposure and payments. It contains valuable information about the business including credit score, tradelines, repayment history, account classification, credit summaries (including share of wallet with different types of lenders), previous credit inquiries and much more.

Expressing his views on this innovative offering, Neeraj Dhawan, Managing Director, Experian India said, “Recent years have seen numerous policies and regulations that are catalysts in making the MSME sector grow significantly. India has approximately 6.3 crore MSMEs and the sector has grown by a CAGR of 18.5% from 2019 to 2020. In FY21, the loan disbursals to MSMEs stood at Rs. 9.5tn, a 40% increase compared with Rs. 6.8tn increase in FY20. However, currently there is friction in the lending process – for proprietors in gaining access to information and for fintechs in using this information to provide personalised solutions.

At Experian, we use the power of data to drive significant advancements and innovation. Considering the challenges faced by both proprietors and fintechs, our new solution, Business Credit Report, aims to create an ecosystem that improves lending to proprietors and provide superior and more personalised offerings to them. We believe that it is imperative for proprietors to be in control of their credit information and the Experian Business Credit Report intends to remove a big friction point as compared to the other market offerings.”

Fintechs can start providing the Business Credit Report in a matter of days since it does not require any separate technological development and is easily accessible through Experian’s APIs. Additionally, the API configurations allow the partner organizations to design their own customer journeys thus customising and enhancing the overall customer experience.

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