About Small Business Risk Score
LexisNexis® Small Business Risk Score is a score that is based on the business’ public record and business registration history designed to predict the early cycle credit worthiness of a small business. If provided, the score incorporates the risk associated with authorized representatives into the final calculation.
The product is targeted to small business lenders whose population of credit applicants cannot be scored using a traditional credit history. This score helps drive critical credit decisions for lenders to small businesses at acceptable levels of risk. Based on the history of the business, including evidence of assets (property and vehicles), evidence of stability and longevity, evidence of filings, and any indication of financial distress (for example, unreleased liens and business bankruptcy), the score predicts the probability of a default on a new credit obligation within 12 months.
If the identity of the business owner, the business agent, or the business officer is also provided in the request, then the risk score includes an assessment of the assets and derogatory information that is known about the business's authorized representative.
Results are assigned a score between 501–900. A value of 222 indicates that there is insufficient data available necessary to generate a score.
 | This Small Business Risk Score is
NOT governed by the FCRA (Fair Credit Reporting Act). The Small Business Risk Score is not
provided by consumer reporting agencies, as that term is defined in the FCRA, and does not constitute a Consumer Report. Accordingly, the [Small Business Risk Score] shall not be used for eligibility determinations in connection with any of the following purposes: (1) in connection with establishing a consumer’s eligibility for credit or insurance to be used primarily for personal, family or household purposes or in connection with the review or collection of a credit account of a consumer; (2) for employment purposes; (3) in connection with a determination of a consumer’s eligibility for a license or other benefit granted by a government agency; (4) as a potential investor or servicer, or current insurer, in connection with a valuation of, or assessment of credit or prepayment risks associated with, an existing credit obligation; or (5) for any other purpose deemed to be a permissible purpose under the FCRA. Based on the Small Business Risk Score, Customer shall not take any adverse action, as that term is defined in the FCRA, or otherwise act in a manner that is contrary to a consumer’s interest unless the basis for doing so is information Customer obtains from a source other than the Small Business Risk Score. If Customer is using the Small Business Risk Score in connection with a loan to a business entity, Customer shall not use the Small Business Risk Score: (1) to revoke consumer credit; (2) to accelerate payment terms in a manner that is chargeable to a consumer or otherwise change such terms in a manner adverse to a consumer; (3) to determine a consumer’s eligibility for any repayment plan. |