We are excited to announce that Cyphr has been featured in the Forbes article, "Beyond The Score: How Startups Are Making Better Credit Available For All Americans." This recognition highlights our innovative approach to improving credit access and underscores our commitment to transforming the financial landscape for small businesses.

Addressing the Credit Challenge

As consumer debt continues to rise, with a near historic high of $17.7 trillion in Q1 of this year, and 47 million Americans holding subprime credit scores, the need for better credit solutions is more pressing than ever. Traditional credit systems often fall short in meeting the needs of many Americans, leading to a significant number of small business credit applications being rejected. In response, a new wave of fintech startups, including Cyphr, is stepping up to provide more effective and fair credit solutions.

Innovative Approaches to Creditworthiness

Cyphr stands out by leveraging alternative data to redefine creditworthiness. Our proprietary credit engines utilize accurate transactional data to transform small business lending and improve underwriting efficiency. By moving beyond traditional credit scores, we can provide a more comprehensive and accurate assessment of a borrower's financial health.

Our approach is part of a broader trend among fintech startups to think outside the score. Companies like Livble and Arro are creating new lines of credit based on rent payments and financial literacy advancements, while others, such as Credit Pulse, are using alternative data sources like bankruptcies, liens, layoffs, revenue, spend, and credit changes to determine credit eligibility.

Empowering Small Businesses

Cyphr's innovative solutions are designed to empower small businesses by providing them with the credit they need to grow and thrive. By utilizing accurate transactional data, we can offer more appropriate and affordable credit lines, helping small businesses overcome the barriers posed by traditional credit systems.

Our commitment to improving credit access is further demonstrated by our involvement in various initiatives aimed at de-risking credit access and leveraging found money for credit. For example, in the mortgage industry, companies like Foyer are connecting future homeowners to tax benefits through First Time Homebuyer Savings Accounts (FHSAs), increasing down payments while providing concierge services for potential homebuyers. Similarly, Stairs is helping borrowers access government-backed down payment assistance programs, and Upside is coupling debt repayment with collateral development through investments.

Transforming the Application Process

Beyond improving creditworthiness, Cyphr is also focused on transforming the credit application process. We believe that transparency and guidance are crucial in driving better outcomes for prospective borrowers. By reimagining the application and rejection processes, we can help small businesses create accurate and complete loan requests, and provide them with personalized paths to improve their creditworthiness.

A Bright Future for Credit Access

The recognition from Forbes is a testament to Cyphr's impact on the financial industry and our dedication to making credit more accessible and affordable for all. We are proud to be part of a new generation of fintech startups that are not just manipulating scores, but fundamentally improving them to enhance the financial lives of Americans.

As we continue to innovate and expand our solutions, we remain committed to helping small businesses achieve their financial goals. Thank you to Forbes for highlighting our work, and we look forward to making even greater strides in the future.

Read the full Forbes article here.