Every year, hundreds of thousands of businesses go out of business. The right data can help you identify companies that have permanently stopped operations.
Traditional data providers report business closures with high latency, leaving lenders vulnerable to increased risk or fraud in the interim. Enigma aggregates online and third-party data, including merchant transactions, to provide signal about the operating status of a business.
How to use this data
Data providing signals about the operations of a business can inform both risk and growth-driven processes. For credit risk monitoring, you can identify likely recent closures amongst businesses in your portfolio, enabling you to address related loans or line of credits. Marketing teams can also leverage this data to increase campaign ROI by ensuring their campaigns only target leads that are still actively operating and generating revenue.
Open or Closed? Verifying Business Status
A company with data about points of interest needed to better categorize whether businesses were open or closed. Using Enigma's transactions stability data, they discovered they were misclassifying 40% of closed businesses.