Credit scoring provides a single number representing the likelihood an applicant will become seriously delinquent. Having this single number improves origination efficiency since you can rank-order applicants by risk level and set cutoffs to take certain actions when scores fall above or below them. A small business scorecard predicts the creditworthiness of the business in the same way a consumer scorecard predicts it for the business principal. Having this additional meaningful number—from analysis of both business and consumer data—sharpens separation of good and bad credit risk. Scores also improve decision fairness—and make it easy to prove.

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