Equifax Launches Small Biz Solution – Analyst Blog

Business and credit information provider Equifax Inc. (EFX) has shifted its focus to small business customers, having launched a service that will help small businesses. This will in turn help them to monitor and strengthen their own credit performance and also the credit health of the companies they’re doing business with.  
 
To serve this purpose, Equifax has launched a new website (equifaxsmallbusiness.com). Through this website customers can purchase business credit reports, which aid businesses to check the credit information of 25 million firms. This apart, the website is also expected to supply smaller companies with information that could help them to reduce losses and establish business credit.

With the help of Equifax’s small business credit report, a company can manage all of its major business customers along with key partners, thus helping them to protect against losses. Besides, the company also provides bankruptcy alerts, which warn customers of any bankruptcy event well in advance. The customers who subscribe to this facility also get alerts which include liens, judgments, charge-offs.

This apart, Equifax was recently in the news for selling all the assets of its Direct Marketing Services division to Alliance Data Systems for $117.0 million. The company expects to use the proceeds to expand its business and meet other general corporate obligations.

Equifax is well positioned to benefit from its leadership in important markets, heightened consumer concern regarding identity theft and strength in international markets. While Equifax’s core business remains solid with the sale of its direct marketing division, the company would be able to focus better on its main business. This apart, the company is driving growth through new product launches and international expansion.

The company also delivered decent first quarter results, with earnings per share exceeding the Zacks Consensus Estimate. The company has provided an encouraging guidance for the second quarter. Moreover, the new partnership agreements should help the company serve its existing customers better.

 

New product introductions although not substantial will also help. However, given the strong correlation to consumer and financial markets, as well as the company’s U.S. exposure, the results will slowly revive, keeping pace with the country’s economic recovery.