Nearly 400,000 small businesses are missing out on access to mainstream finance largely because credit providers are unable to adequately assess and price small business risk.

According to a recent report by Dun & Bradstreet, ‘Giving Small Business Credit – Finding New Opportunities in Australia’s Most Dynamic Credit Market’, of the more than one million unincorporated businesses in Australia, more than 650,000 have no major financial obligation and nearly 400,000 would immediately qualify for finance with a risk profile ranging from minimal to low.

The report represents the first time any detailed analysis of the credit profile of unincorporated entities has been conducted and provides an insight into the opportunity that exists for lenders pursuing the small business market.

According to Gareth Jones, CEO of Dun & Bradstreet, lenders have historically been hesitant about extending credit to small businesses as many of them are unincorporated entities that have little or no commercial credit history.

To read the full story click on the attachment:   Australia – 400000 small businesses missing out on mainstream finance