Small businesses using Nav’s MatchFactor technology are four times more likely to be approved for financing.
San Mateo, July 14, 2016 – Nav, the only place to get both business and personal credit scores free, today announced the launch of its MatchFactor technology, the first and only technology that uses a proprietary algorithm, along with machine learning, to instantly filter and display financing options a business owner is most-qualified for. This allows small businesses to save precious time and only apply for loans and credit cards they are likely to get—without having to fill out any long forms or sit on a call with a sales rep. The statistics on business lending are abysmal. According to the Federal Reserve Bank of New York, it takes up to 26 hours for business owners to search and apply for loans, and 72 percent of small businesses1 get turned down for traditional loans. Additionally, nearly a quarter of business owners2 have given up on applying. Every Nav customer automatically gets a MatchFactor score for dozens of financing options and business credit cards from the top financial institutions.The impact is immediate: businesses that follow Nav’s MatchFactor guidance are four times more likely to be approved.
“Everyone says they love the American Dream, but when it comes to financing your own business, the dream and reality don’t add up,” says Levi King, CEO and cofounder of Nav, and a serial entrepreneur. “At Nav, we’re on a mission to materially reduce the small business death rate in America. Helping business owners quickly access their best funding options can have a significant impact here. Most business owners barely have enough time to eat lunch, much less 26 hours to research financing—I’ve been there myself, having accessed financing more than thirty times. Nav’s MatchFactor does the legwork behind the scenes, so business owners can save time and apply with confidence.”
“At Nav, we’re on a mission to materially reduce the small business death rate in America. Helping business owners quickly access their best funding options can have a significant impact here.”
Nav’s MatchFactor is faster and more accurate than other financing tools
Other financing marketplaces rely on self-reported information, make busy owners fill out a form or just do not provide clear details. Because Nav is providing customers both business and personal credit scores (free), it is already sitting on a majority of the information lenders use to judge a business for a loan or credit card. Plus, Nav uses machine learning to continuously perfect the MatchFactor algorithm with each new application submitted. More than 130,000 entrepreneurs now use Nav to take charge of their credit and get unbiased financing advice.
“Securing business financing can be a confusing, and at times, maddening experience,” said Leah LaSalla of Astralar. “The information we acquired from Nav in about 30 seconds was instrumental in helping us get our most recent funding. Business financing is a major hurdle and Nav bridged the knowledge gap that allowed us to keep moving and saving lives.”
How Nav’s MatchFactor works:
• MatchFactor does not need to “pull” a business owner’s personal and business credit, and so it will not hurt credit scores.
• The algorithm generates a “likelihood of approval” rating for each business credit card and financing offer available in Nav’s marketplace. The rating is based on the business owner’s credit and financial data as compared to the lender’s underwriting requirements.
• Nav customers will see a MatchFactor score next to each financing product in our marketplace, from 0 percent to 100 percent. Top “matches” are displayed first. The higher the score, the more likely the financing option is to get approved.
• Nav uses machine learning to continually perfect its algorithm after each new application submission and subsequent approval or denial from the lender.
• Customers can further filter options based on preferences like amount or loan type. They can also speak to one of our credit and lending experts with no obligation or hassle.
More than 67 percent of Nav customers surveyed about MatchFactor said they have used their rating to apply for a loan or credit card, more easily determine their best options, or gain a better understanding of why they did not qualify. Visit Nav.com to learn and see more.
For more information on the challenging world of business financing, join Nav and small business expert Brian Moran for our co-hosted Twitter chat, #NavSMBChat on July 14 at 1pm EST/10am PT “Dealing with Rejection as a Small Business Owner.”
1 2013 Federal Reserve Bank of New York small business owner study: https://www.newyorkfed.org/smallbusiness/Fall2013/index.html
22015 Small Business Credit Survey (SBCS) conducted by the the Federal Reserve Banks of New York, Atlanta, Boston, Cleveland, Philadelphia, Richmond, St.Louis: https://www.newyorkfed.org/medialibrary/media/smallbusiness/2015/Report-SBCS-2015.pdf
This article was originally written on July 14, 2016 and updated on November 1, 2016.
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