US EditionFINREGLAB STUDY SHOWS CASH-FLOW DATA CAN EXPAND SMALL BUSINESS LENDING
- FinRegLab released a study on June 3, 2025, in Washington analyzing over 38,000 small business loans from two fintech lenders between 2015 and 2024.
- The study addresses challenges faced by early-stage and financially constrained entrepreneurs who struggle to access credit due to traditional underwriting relying on personal credit scores.
- It finds that cash-flow data derived from electronic bank accounts improves loan performance prediction, especially for new businesses or those with low credit scores.
- FinRegLab CEO Melissa Koide emphasized that cash-flow underwriting goes beyond a mere technical advancement, offering an effective approach to overcoming persistent challenges faced by small businesses in securing financing.
- The research implies that integrating cash-flow underwriting can expand responsible credit access, helping fuel economic growth and support recent increases in small business formation.
36 Articles
36 Articles
Beware of cash flow underwriting: Why one expert is sounding the alarm
iStock.com/sesame When interest rates stay high for a sustained period, insurers might start writing more policies because they can make money on their investment yield, even if the underwriting itself isn’t profitable. It’s called “cash flow underwriting,” and one economic expert warns its return could hamper Canada’s P&C industry’s profitability amid tariff worries. “The risk is that, over the medium term, if insurers can make a profit solely …
Rutland Herald
FINREGLAB STUDY SHOWS CASH-FLOW DATA CAN EXPAND SMALL BUSINESS LENDING
WASHINGTON, June 3, 2025 /PRNewswire/ -- A new empirical study from FinRegLab finds that cash-flow data can help lenders underwrite small businesses more accurately, particularly when evaluating early-stage companies and financially constrained entrepreneurs that often struggle to access credit because…
Coverage Details
Bias Distribution
- 67% of the sources are Center
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
