Eye-opening insights about reporting from 200 small business owners [survey results]

Last December we conducted a survey hoping to better understand business credit awareness among small business owners. The results were surprising even to us. 

As we’ll see in this breakdown of the survey results, awareness of reporting is not only high, but credit reporting is a requirement for many when shopping for a small business loan.

Business owners are consistently aware of their business credit.

68% of small business owners are “very aware” of their credit history, which includes 33.5% who regularly check theirs

Our survey revealed that 68% of small business owners consider themselves "very aware" of their business credit history, showcasing their growing understanding of its importance. Furthermore, 34.5% of respondents actively monitor their credit by checking it regularly. 

This heightened awareness demonstrates that small business owners recognize the critical role their credit profile plays in securing favorable financing terms and maintaining financial health. For lenders, this signals a clear opportunity to align loan offerings with these priorities by integrating business credit reporting into their services.

They know that credit reporting as an important part of building their business credit history.

48% consider payments reporting  as "very important" to building their business credit history

Nearly half of small business owners surveyed (48%) identified regular payment reporting as "very important" to building a strong business credit history. This underscores a key takeaway: borrowers deeply understand the connection between reporting payments and a solid credit profile. This is likely due to many owner's experiences int he world of personal credit.

This is good news for lenders too: by offering business credit reporting, lenders can directly address this priority and stand out as a partner committed to their clients' financial growth.

Borrowers Value Lenders Who Report Payments

59% say they "would prefer to borrow from a company that does report my payments", while 26% say they "would only borrow from a company that reports their payments".

The survey revealed a strong preference among small business owners for lenders who report payment activity to credit bureaus. A significant 59% of respondents stated they "would prefer to borrow from a company that DOES report my payments," while 26% went further, saying they "would only borrow from a company that reports their payments." 

This data underscores the importance borrowers place on credit transparency and their desire to build creditworthiness through loan repayment. For lenders, offering business credit reporting is not just an added feature—it’s a competitive advantage that aligns directly with borrower expectations.

65.8% say they’d be more likely to borrow from a lender if they knew they reported

When asked if knowing a lender or vendor reports payments would influence their decision, 65.82% of small business owners said it would make them more likely to choose that lender. This overwhelming majority highlights the value borrowers place on transparency and the ability to build their credit history through reported payments. 

For lenders, this insight presents a clear opportunity: by incorporating business credit reporting into their offerings, they can attract more borrowers and strengthen their position in a competitive market.

Key Factors Influencing Borrower Decisions

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When selecting a lender, small business owners consider a variety of factors, as revealed by the survey. The interest rate emerged as the most significant, with 84.5% of respondents prioritizing it in their decision-making. Following this, 53% cited the size of the loan or credit line as critical. Notably, 34.5% ranked whether a lender reports payments as a deciding factor—placing it above ease of application (34%), installment amounts (31%), and repayment frequency requirements (27%). Speed of funding (21.5%) and collateral requirements (14.5%) also played a role but were less prominent. 

These insights emphasize the competitive edge lenders can gain by incorporating business credit reporting into their offerings, addressing a key borrower priority alongside traditional financial considerations.

Credit Reporting Builds Trust and Loyalty

The results of this survey reinforce other substantial evidence about credit reporting and its value for both borrowers and lenders. 

For borrowers, it offers a way to build their credit history, fostering financial growth and access to better terms. For lenders, reporting payment activity promotes responsible borrowing behavior, which leads to reduced delinquency rates and healthier loan portfolios. 

When borrowers understand that their payment history impacts their credit, they are more likely to prioritize timely payments, benefiting all parties involved.

With Hansa, reporting to the bureaus has never been easier

Offering business credit reporting not only aligns with borrower priorities but also provides strategic advantages for lenders. Transparency in credit reporting encourages borrowers to stay current on their payments, improving repayment performance. Small business owners value this transparency and prefer lenders who report payments, as it builds trust and supports their financial goals. Hansa’s enables you to seamlessly implement credit reporting, strengthen borrower relationships, enhance loan outcomes, and differentiate your offerings in a competitive market. If any of that sounds like your cup of tea, we’d love to hear from you.

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Survey conducted independently by Hansa in December, 2024 with 200 respondents comprised of small businesses in the United States.