Nic Beishon, Head of Commercial at Equifax, the consumer and business
insights expert, comments on the new Standards of Lending Practice for
small businesses, which come into effect tomorrow [1 July]:
major contributors to the ongoing success of the UK economy, SMEs will
benefit from the new Standards of Lending Practice. The standards will
drive good practice for lenders when assessing different types of
business, protecting those borrowing money and delivering fair
customer outcomes. Evaluating a borrower’s capacity to meet their
ongoing repayments is increasingly important to safeguard them against
over indebtedness, and to identify businesses at risk of falling into
“The standards now apply not just to the very smallest
business, but to any business with a turnover of up to £6.5 million.
In order to meet their responsibilities to both clients and
regulators, lenders need a 360-degree view of the applicant to
understand their financial health. They should not just look at the
businesses financials, but also the individuals behind the business.
In particular, lenders should consider information such as the
business current account turnover data and the use of overdrafts to
assess whether, for example, a loan is appropriate. This should be the
case no matter the size of the SME, whether the person being dealt
with is a sole trader or a director of a company.
“This information is not just important at the time of
application, it should also be assessed on an ongoing basis to
identify any change in circumstances, and in the case of financial
difficulty, the best way to assist the business owner.
“The SME sector is vital to the UK’s continued economic
recovery and the Standards are designed to create fairer lending for
these important businesses. Integrating a mix of commercial and
consumer analysis into lending decisions will allow lenders to commit
to responsible loans while helping the sector to grow.”
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For additional information on using consumer and commercial
insights to make responsible lending decisions, please click [here].
For further information, please contact:
Sonam Patel or Alastair Doyle
Telephone: +44(0) 20 3697 4200
Equifax is a global information solutions company that uses
trusted unique data, innovative analytics, technology and industry
expertise to power organizations and individuals around the world by
transforming knowledge into insights that help make more informed
business and personal decisions. The company organizes, assimilates
and analyzes data on more than 820 million consumers and more than 91
million businesses worldwide, and its database includes employee data
contributed from more than 7,100 employers.
Atlanta, Ga., Equifax operates or has investments in 24 countries in
North America, Central and South America, Europe and the Asia Pacific
region. It is a member of Standard & Poor's (S&P) 500® Index,
and its common stock is traded on the New York Stock Exchange (NYSE)
under the symbol EFX. Equifax employs approximately 9,700 employees
Some noteworthy achievements for the company include:
Named to the Top 100 American Banker FinTech Forward list (2015-2016);
named a Top Technology Provider on the FinTech 100 list (2004-2016);
named an InformationWeek Elite 100 Winner (2014-2015); named a Top
Workplace by Atlanta Journal Constitution (2013-2016); named one of
Fortune’s World’s Most Admired Companies (2011-2015); named one of
Forbes’ World’s 100 Most Innovative Companies (2015-2016). For more
information, visit www.equifax.com.
Equifax Limited is one of
the Equifax group companies based in the UK. Equifax Limited is
authorised and regulated by the Financial Conduct Authority.