An Analysis of Predictive Small Business Credit Performance
The Challenge
Fiscal Year 2024 saw the highest small business loan default rate in a decade, creating significant uncertainty for the 2025 outlook due to mixed economic signals. This creates a critical need for financial institutions to find sources for predictive clarity.
The Solution
Lumos’ predictive models provide financial institutions with the transparency and consistency needed to navigate these conditions.
Predictions have proven to be robust, with actual loan defaults consistently falling within a narrow interquartile range (IQR). This suggests the model’s confidence is a direct reflection of market clarity.
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