Building Credit with Kiva

36% of small-business borrowers get a “no” from creditors because of their credit scores

And another 30% are denied for new or insufficient credit history, according to a study done by the Federal Reserve Banks of New York, Atlanta, Cleveland & Philadelphia.

But if one can’t get a small business loan to begin with, then how does one start building business credit, which is usually required when applying for other loans?

At Kiva, these kinds of questions are top of mind. Because at Kiva, we dream big. From rethinking creditworthiness to creating systemic changes to make financial security and financial mobility more equitable, we’re constantly testing, learning, and innovating.

And perhaps most importantly: we’re listening. Because we know that if we want to improve our product and our borrowers’ experience, we need to implement the invaluable feedback we receive from our borrowers themselves. And that’s exactly what we’re doing. When we heard that thousands of past and present Kiva borrowers would appreciate the opportunity to build business credit through Kiva, we took action.

We’re helping hardworking and talented small business owners and entrepreneurs access the 1st rung of the capital ladder, and we’re not stopping there. Our efforts to rethink creditworthiness are reflected not only in our unique social underwriting practices and in the continuous evaluation and refinement of these, but also in the improvements that we’re making to the 0%-interest, zero-fee Kiva US loan product.

Frequently Asked Questions

  • Will this (opting in to have my business credit built through Kiva) affect my personal credit score? No, there is a clear separation between personal and business credit.

  • What aspects of the Kiva Borrower Journey – from application to review to crowdfunding to loan disbursal to repaying – will be affected if I opt in? There will be no changes to the loan application review process nor will your likelihood of getting approved for a loan be affected. If you have opted in, once you are crowdfunding on Kiva.org, your loan profile will indicate that you will be building business credit with the help of this Kiva loan.

  • Will my lenders be notified of my business credit report? Your lenders will not be explicitly informed of your business credit report, nor will this information be public on your Kiva loan profile. *Please note that, unlike your personal credit score, your business credit profile is public, so anyone who wants to can take a look at it.

  • Can I opt in even if my business is not yet incorporated? Yes, you can. Commercial reporting has no restrictions on any type of business, but it is greatly important that you provide Kiva with your accurate business information (business name and registered address of business), as this information is used to generate the credit report.

  • At what point does Kiva stop reporting on my business credit? Kiva will continue reporting on open accounts – an open account is defined as any account that still has a balance, including defaulted loans. We will continue reporting on these accounts until the balance is fully satisfied/paid off, or until the Fair Credit Reporting Act’s 7-year mark* is surpassed. *The Fair Credit Reporting Act (FCRA) prohibits background screening firms from reporting any arrest record or adverse non-conviction information older than seven years.

  • Can I change my mind if I decide I no longer want to have my business credit reported? What does that process look like / how should I contact Kiva? What are the consequences of backing out? Yes. Kiva can withdraw previously-provided information from the credit reporting agency on a monthly basis. If you would like to opt back out, please email borrowers@kiva.org with your request. We will then delete the Kiva repayment data from your credit report and stop providing future repayment data to the credit bureau. This process may take up to a month from the date of your request to complete. There are no consequences of opting out other than losing the ability to access your business credit report and have your business credit profile built through Kiva, as well as losing the ability to opt back into this service.

  • Where can I go to see my business credit report, and when can I see it? Experian and Dun & Bradstreet will grant you access to view your report. In fact, because they want to ensure the information they have about your business is accurate, it makes sense to regularly review your profile. Please note: You may not see a particular payment reflected for up to 45 days due to reporting cycles. E.g., if you make a payment on the 1st of July, Kiva reports July payment information at the beginning of the following month, in this case, in August. Next, the Credit Builders Alliance (CBA) reviews and processes the information, then the credit bureau processes the data, and then you are able to see the updated result.

  • What kind of financial decisions are impacted by information contained in my business credit report?

  • How much business credit a supplier will extend to you

  • What repayment terms you’ll receive

  • What interest rates you’ll pay

  • How much credit or funding a bank or lender will extend to you

  • How your customers view your business

  • If my business is located in Puerto Rico, will I still be able to have my business credit built through Kiva?

    Please note that Experian Business does not process the data for businesses containing an address in Puerto Rico.
    Dun & Bradstreet, however, do process these accounts, so they will show on D&B reports.