The Future of Lending

So think about it: the two questions that the consumerlending machine is based on have nothing to do really with the enterprise value of the business. The ‘Enterprise Value’ of the business, as we have established, are the two most important words for every entrepreneur to discover, monitor and optimize. So wouldn’t you think the commercial and business lending markets would be based – at least in part – on understanding and lending to that value, that metric, or that score?

We believe this will happen in the not-too-distant future. Why? Because it will have to. Online lenders are getting smarter every day by asking myriad Big Data analytic questions that show that they can base their risk and credit decisions on other factors. This has helped them grow at a rate of a 5-to-1 ratio against the growth rate of traditional banks and offline lenders.

What if business credit and commercial loans were based on something that all businesses could measure, and manage and strive to grow? What if small business loans were neither consumer-oriented nor based on requirements that hinder their ability to be viewed properly?

When The Fair Credit and Reporting Act of 1970 was established in the United States, it ushered in a period of

unprecedented lending capacity and growth for consumer credit. We at BizEquity believe a similar measure is needed to help usher in a boom in lending to the 99% of businesses which are in fact small businesses that need to be judged and measured more fairly.

The Fair Credit and Reporting Act called for personal lenders (such as credit card companies) to treat consumers better through more accurate and representative measures of credit and risk, by establishing the credit score as the common lingua franca.

It is our belief that by 2020, the business valuation score will do to business lending what the credit score helped to do to the consumer lending market, making it more available and transparent for entrepreneurs. And we believe BizEquity will be the FICO for businesses around the world.

We believe that if the existing banking infrastructure around the world wants to compete more effectively with offline lenders, they will help to promote this new initiative so that there are new common ways to lend transparently more effectively.

The 2012 presidential election in the United States may have foreshadowed something very important, but perhaps

the words were misplaced. Rather than the problem, it’s opportunity for the economy that stands with the 99% and not the 1%. The 99% are the small businesses globally that need a more transparent and fairer measure by which to be lent to and grow.

Get Started with BizEquity

The BizEquity valuation tool is far ahead of its competitors. It offers: 1. Accuracy and breadth of range 2. Quantity and diversity of company types served (throughout a firm’s life-cycle) 3. User-friendliness, visual appeal and capability to save/ update appraisals 4. Expanded income, asset and liability coverage, with

Hints and Learn More options for the user 5. Initial contributions to the BizEquity™ Online Valuation

Library and Blog Collection 6. Interactivity based on the business owner’s ability to engage in sensitivity analysis, with real-time feedback regarding business value 7. Number of overall industries covered, and a dynamic search functionality – real-time industry analysis comes up as you type in your industry 8. Holistic life-cycle valuation methodology, which shows where you are in your business journey.

The first and last key offerings give the business owner information about how their business value will change, and the business valuation will change as the business evolves.