Edge expands score suite

Edge has expanded its cashflow reporting suite with new scoring tools designed to help lenders better evaluate consumer creditworthiness. For retailers and operators, this is a positive development for approval rates. These new scores look beyond traditional credit reports. They focus on real-time cashflow data, which means lenders can more accurately assess customers who might have a thin credit file or a lower traditional FICO score but actually have the income to support a purchase. The update includes an improved Early Payment Default Score. This helps lenders identify high-risk borrowers before a loan is even funded. For a business owner, more precise underwriting technology generally leads to a healthier financing program with fewer defaults and potentially more competitive rates for your customers. By using cashflow data rather than just historical debt data, these tools allow for better lead screening. This ensures that the customers being approved for financing are truly capable of making their payments, protecting both the merchant and the lender from bad debt. As these tools become integrated into the consumer financing platforms you use, you may see shifts in how your customer base is approved for monthly payment plans.

Source: Finextra — Lending

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