Banks reported that during the third quarter, they tightened their lending standards for small businesses, subprime mortgages and borrowers not meeting credit scoring thresholds for consumer loans, the Federal Reserve said in the October edition of its Senior Loan Officer Opinion Survey on Bank Lending...
Businesses are using several forms of working capital to pay bills that previously could have been covered by customer receipts arriving earlier. Bank credit lines, corporate cards and supplier payment terms give firms different ways to finance the interval between purchasing goods and collecting payment....
A commercial borrower’s finances keep changing after a loan is approved, as invoices are collected, inventory is purchased and payroll comes due. Continuous underwriting brings that activity into the purview of credit reviews. Payment receipts, account balances and operating records offer lenders information about repayment...
The credit score has a strange blind spot. It knows a lot about the borrower and almost nothing about what the borrower is about to buy. And as latest installment of “The Future of AI Credit” playbook, a PYMNTS Intelligence collaboration with Thredd, shows, creditworthiness is not...
Auto lenders are entering a period in which collections performance will depend on more than identifying borrowers who are falling behind. They also must account for what happens between the monthly statement and the receipt of payment. The Federal Reserve Bank of New York’s “Quarterly...
The biggest threat to a company’s working capital strategy is now commonly hiding in a perfectly drawn up sales contract, not an overdue invoice. Finance departments can automate collections, optimize cash forecasts and accelerate reconciliation. But when commercial teams negotiate longer payment terms to win customers, the cost of financing growth gets decided before...
Mpower Financing, an American lender focused on loans to international students, is reportedly shutting down. That’s according to a report Wednesday (Oct. 7) by Bloomberg News, which calls this one of the biggest corporate implosions related to President Donald Trump’s immigration crackdown. According to the report, Mpower had...
Experian has launched a new consumer reporting agency that helps financial institutions leverage consumer-permissioned cash flow insights to support underwriting decisions, the company said in a Tuesday (Oct. 6) press release. The Experian Cashflow Data Bureau operates under the Fair Credit Reporting Act (FCRA) and...
A credit file doesn’t capture every signal lenders can use to judge whether a borrower will repay. Roughly 25 million U.S. adults lack enough recent credit activity to generate a usable score, the Consumer Financial Protection Bureau (CFPB) noted last year, as PYMNTS reported. PYMNTS...