Banks, Lenders and Firms that require origination at scale require precision audience targeting that reflects both credit criteria worthiness along with anticipated appetite.

Alt lending businesses need to target businesses who are more likely to be approved for a loan or advance but also have an appetite for the products rates and terms. This requires precision targeting of key datapoints.

Trafiqa supplies large segments of the alternative finance space – including many banks, lenders, brokers and syndicates who require scale in either unsecured working capital or short term advance space.

We also operate and manage our own syndicates - we understand the metrics for approval and client acceptance and we have the data to achieve the level of scale you require.

Key Data Points for Creditworthiness

To accurately target potential borrowers, lending businesses must analyse a variety of data points. Some of the key data points that indicate creditworthiness include credit score, time in business, loan to value(LTV), loan requirement, and debt-to-income ratio (DTI). These data points are crucial because they can predict the likelihood of loan approval and the borrower’s ability to repay the loan

Credit Score

Credit score is one of the most important factors when determining creditworthiness. A credit score is a numerical value that ranges from 300 to 850, with higher scores indicating better creditworthiness. Lending businesses typically set a minimum credit score requirement for loan approval and borrowers with higher credit scores are more likely to be approved for a loan. Lending businesses can target potential borrowers based on their credit score by using credit monitoring tools and credit reporting agencies.

Time in Business

For commercial finance companies, time in business is a key indicator of creditworthiness. Lending businesses want to target borrowers who have been in business for a minimum number of years because they are more likely to have a stable revenue stream and a history of repaying loans. Lending businesses can target potential borrowers based on their time in business by using public records and business credit reporting agencies.

Loan to Value (LTV)

Loan to value is the ratio of the loan amount to the value of the collateral. For mortgage firms, LTV is a key indicator of creditworthiness because it shows the borrower’s equity in the property. A lower LTV indicates a lower risk of default because the borrower has more equity in the property. Lending businesses can target potential borrowers based on their LTV by using public records and real estate data providers.

Loan Requirement

Lending businesses can also target potential borrowers based on their loan requirement. For example, some lending businesses may specialise in small business loans, while others may focus on larger loans. By targeting potential borrowers based on their loan requirement, lending businesses can ensure they are providing loans that fit their expertise and risk tolerance.

Debt-to-Income Ratio (DTI)

DTI is the ratio of a borrower’s total monthly debt payments to their monthly income. A lower DTI indicates that the borrower has more disposable income to repay a loan, which is a key indicator of creditworthiness. Lending businesses can target potential borrowers based on their DTI by using credit reporting agencies and public records.

Precision Targeting for Creditworthiness

To effectively target potential borrowers, lending businesses must use precision targeting techniques that take into account the key data points that indicate creditworthiness. Precision targeting involves using data analysis tools and targeting methods that focus on the most relevant data points. This ensures that lending businesses are only targeting potential borrowers who are most likely to be approved for a loan.

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