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Supply-Chain Data Moves Into SMB Underwriting

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Supply-Chain Data Moves Into SMB Underwriting

Shipment, inventory and fulfillment data are being brought into SMB financing analysis.

Supply-chain records provide information about goods-based SMBs that differs from conventional financial records.

Lenders already cite incomplete, outdated and limited SMB records as obstacles to credit decisions.

Small businesses that sell physical goods generate records before the commercial activity is reflected in the financial accounts or converted into cash.

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Orders enter commerce systems. Inventory moves into and out of warehouses. Products are picked and packed. Shipments leave for customers. Each step produces data about the operation of the business.

Some of that supply-chain data is now being brought into SMB financing.

A financing product planned for 2027 will use FedEx supply-chain intelligence, including shipment activity, inventory movement and fulfillment performance, in financing analysis through Stripe Capital for FedEx SMB customers, according to PYMNTS coverage of the announcement.

The use of supply-chain information comes as lenders continue to report weaknesses in the records available for small-business underwriting.

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PYMNTS Intelligence found that 57% of financial institutions cite inaccurate or incomplete SMB records as an underwriting obstacle. Outdated information was cited by 52%, inconsistent information by 52% and limited financial histories by 48%.



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