Understanding the Small Business Financial Exchange (SBFE)

What Does the SBFE Do for Small Businesses?

The SBFE: The Small Business Financial Exchange (SBFE) is a well known nonprofit trade association dedicated to supporting the secure growth of small businesses. Its mission is to be the leading advocate for responsible small business lending across the U.S.

Lending Industry: The SBFE plays a crucial role in the lending ecosystem by collecting and protecting the largest set of small business payment data in the country. Lenders use this powerful data to build a reliable and accurate picture of a business’s credit health, which helps make better-informed lending decisions.

Data From Members: SBFE gathers commercial performance data directly from its members—financial institutions and lenders. This data is then interpreted, analyzed, and used solely for credit assessment, not marketing.

Who Can Join the SBFE and Why It Matters

SBFE Members: A wide range of small business lenders—including banks, credit unions, fintechs, and alternative lenders—are becoming SBFE members. Their participation strengthens the network and enhances the data’s accuracy and value.

Commercial Performance: Members provide commercial lending performance data, which is securely stored and never used for promotional or marketing purposes.

Better Comparisons: The SBFE normalizes the data it receives, enabling lenders to make fair comparisons and better evaluate the creditworthiness of small businesses.

How SBFE Members Contribute and Benefit from Shared Data

Total Portfolios: The SBFE currently includes approximately 135 members and 420 total loan portfolios. Notably, 69% of these portfolios are contributed by conventional financial lenders, making the SBFE one of the most comprehensive small business credit data sources available.

Business Lending: Thanks to this extensive database, the SBFE plays a major role in championing small business lending and enhancing financial access for entrepreneurs nationwide.

Becoming an SBFE Member: What You Need to Know

• Anyone who can report small business lending information may become a member of the SBFE.
• Members include banks, credit unions, and non-traditional lenders.
• Doing business with SBFE exchange partners can boost your business credit—but improper financial management can harm your credit profile.
• Working with SBFE members ensures your payment activity is reported, reducing the risk of being invisible in the business credit space.
• However, poor credit habits may negatively impact your report with lenders.
• Members agree to report both positive and negative payment data, creating a balanced credit picture.
• Learn more: sbfe.org/small-business-resources

Top Lenders and Credit Providers in the SBFE Network

Members: Some of the most reputable business credit providers and lenders in the U.S. are proud members of the Small Business Financial Exchange (SBFE).

American Express: Major institutions such as American Express, Bank of America, Fundation (an online lender), and Wells Fargo are part of the SBFE network. Their participation ensures high-quality data sharing and improved credit evaluations.

Certified SBFE Vendors: Who They Are and Why They Matter

SBFE Controls: The SBFE ensures that all data contributors follow strict standards for accuracy and consistency. It also verifies vendor compliance to maintain data integrity.

LexisNexis: There are four SBFE Certified Vendors:

• Dun & Bradstreet (D&B)
• Equifax
• Experian
• LexisNexis

These certified members develop exclusive risk products using SBFE data, available only to SBFE members.

How Certified Vendors Use SBFE Data to Build Business Credit Tools

• Credit vendors are official partners of the SBFE.
• They collect and distribute small business credit data through their proprietary systems.
• These vendors create specialized tools and reports for business credit evaluation using SBFE data.
• They also provide detailed credit information to other SBFE members reviewing a company’s financial reputation.
• Lenders using these vendors benefit not only from the vendor’s proprietary data but also from the exclusive SBFE dataset.
• This dual-source insight gives lenders a more complete and accurate view of a business’s creditworthiness.

Data Products Created from SBFE Insights

• SBFE data-driven products are available for purchase by members.
• These products are created and distributed by SBFE Certified Vendors.
• They support credit decision-making and business loan approvals.
• Members also use them to screen and manage loan portfolios effectively.
• Learn more: sbfe.org/certified-vendors

Benefits of SBFE Membership for Merchant Acquirers

SBFE: SBFE membership provides merchant acquirers with valuable insights that enhance pricing strategies and strengthen risk management. Access to this data allows merchants to make more informed decisions about their small business clients.

Borrowing Activity: SBFE data offers visibility into a merchant’s borrowing patterns and current debt status, which is critical for assessing financial health and creditworthiness.

Without SBFE: Without SBFE data-driven tools, early indicators of financial distress may go unnoticed. This lack of insight can increase risk and reduce the ability to respond proactively.

Data-Driven Products: Merchants can use SBFE data to verify the legitimacy and operational status of small businesses. This helps prevent fraud and improves due diligence.

United States Business: SBFE offers access to one of the largest commercial data repositories in the U.S., including verified business names, addresses, and contact details.

For more information, visit: sbfe.org/membership/merchant-acquirers

Types of Business Data Collected by the SBFE

• NAICS Code: Business classification details
• DUNS Number & EIN: Unique business identifiers
• Business Name & Address: Verified contact details
• Card Payment History: Credit card payments, account limits, lease payments, and positive/negative payment activity

Ways the SBFE Supports Your Business Credit Growth

• SBFE Representatives: Doing business with SBFE members helps you build and strengthen your business credit profile.
• Positive Recorded Knowledge: When positive payment activity is reported, it helps establish a strong credit history.
• Grow Your Business: Improved credit opens the door to growth opportunities and higher funding potential.
• Expanded Funding: Better credit gives access to more favorable financing options.
• Lending Decisions: SBFE data supports smarter credit decisions if your business extends financing to clients.

Proven Steps Your Business Can Take to Build Credit

• As a small business owner, you are responsible for your company’s credit profile. You have control over what data appears on your business credit report through your financial behavior.
• Pay your bills on time, work with SBFE member companies, and encourage your vendors and partners to join the SBFE. These actions ensure your payment history is reported and tracked properly.
• While you can register with the SBFE, keep in mind that you cannot self-report your business data—only members who are lenders or vendors can submit data.
• Becoming part of the SBFE network allows you to make better financial decisions and improve your credit history over time.
• Smart business credit moves include:
  • Opening vendor credit accounts
  • Applying for business credit cards
  • Using funding tools like Credit Line Hybrid
  • Actively monitoring your business credit reports

Affordable Ways to Monitor and Protect Your Business Credit

• Monitoring your business credit is crucial. While you can get reports from agencies like Dun & Bradstreet or Equifax, these reports can be costly.
• A more affordable option is enrolling in a credit monitoring program, such as the one offered by Credit Suite.
• This program provides ongoing access to your credit data, credit scores, and the factors impacting them.
• You could save up to 90% compared to CRA pricing by visiting: creditsuite.com/business-credit-monitoring
• Use this information to identify opportunities to improve your credit and dispute any errors you find.
• When disputing, include a detailed explanation of the issue, state the correct information, submit supporting documents, and keep your original copies.

SBFE Summary: Key Points to Remember

• The Small Business Financial Exchange (SBFE) is a nonprofit organization that collects and safeguards commercial data.
• SBFE members share and receive access to vital business credit information.
• SBFE partners with certified vendors to deliver data-driven risk solutions that support better lending and credit decisions.
• The three major commercial credit bureaus—D&B, Experian, and Equifax—are certified SBFE members.
• Doing business with SBFE members helps build your credit history, but negative items can still hurt your score if they appear.
• Partnering with SBFE members ensures your positive payment history is reported, giving you a fair chance to grow your business credit.
• If your company extends credit, SBFE data can help reduce the risk of making poor lending decisions.