MicroBilt Expands Use of Alternative Credit Reporting Sources; Partners with Teletrack to Help Small Businesses Originate More Loans with Less Risk

Kennesaw, GA, April, 21, 2008—MicroBilt, Inc. is increasing its use of non-traditional credit reporting sources to help small to medium enterprises extend more credit with less risk. In expanding its credit history reporting to include data beyond payment histories, MicroBilt is partnering with Teletrack, Inc., a subsidiary of risk mitigation leader First Advantage Corporation (NASDAQ:FADV).

Teletrack is a consumer reporting agency (CRA) that provides credit history information compiled from “payday” lenders and other non-traditional reporting sources. With lenders of all types tightening the reins on extending credit, the ability to originate more loans without increasing risk helps lenders stay profitable and enables more borrowers to make purchases and invest in their own ventures.

Alternative credit sources can help manage risk in many aspects of business from extending credit and originating loans to collections. Expanded data sources leverage a variety of information such as existing open loans, previous credit inquiries, discrepancies with Social Security numbers, inclusion on federal watch lists and landlord/tenant conflicts.

“Small businesses in particular are in a situation right now where they can’t be too careful about who they lend to, but at the same time they don’t want to walk away from good loans for lack of credit information,” says Walt Wojciechowski, CEO of MicroBilt, Inc. “The challenge is to expand the base of usable credit history to get an accurate assessment of risk without relying solely on traditional sources of consumer data. MicroBilt is incorporating a broader set of reliable databases such as those maintained by Teletrack to give lenders more confidence and allow more people to keep spending money and fueling the economy in spite of not having well documented credit histories.”

Focused on consumers with limited credit profiles, Teletrack delivers management solutions for non-traditional lending markets, including payday loan companies, rental purchase stores, non-traditional credit consumer finance businesses, non-prime auto lenders and credit unions. Teletrack delivers unique data and decisioning solutions incorporating credit inquiries, account charge-offs, paid charge-offs and open loan data from businesses dealing primarily with high-risk, non-prime consumers. Teletrack’s extensive non-traditional consumer databases include hundreds of millions of consumer credit records from more than 15,000 sources across the US.

“We identified an unmet need for specialized, dedicated credit reporting on consumers with inconsistent credit histories or unique financial needs, and we deliver information gathered from businesses nationwide that isn’t available from other sources,” says Rich Alterman, senior vice president of product management at Teletrack, Inc. “The profitability and survival of many businesses depends on being able to extend credit to consumers with less extensive credit histories, and the information we provide helps them take on many more customers that couldn’t qualify for credit otherwise.”

MicroBilt will continue to evaluate alternative data sources as more small businesses face pressure to eliminate bad debt, bad credit and fraud. Along with the information now available through Teletrack, MicroBilt offers solutions such as the FICO Expansion score for use in the offering of home equity loans, credit cards and auto loans to consumers with little or no documented payment histories.

“The current credit crunch is a correction that’s going to continue for some time before things level off,” says Wojciechowski. “Our goal as the risk management provider focused on smaller businesses is to keep our customers doing good business and extending credit to stay profitable. We’ll also be doing more in the coming months to make sure small businesses are able to share more credit transaction information with the leading credit bureaus and in turn, expand the access to credit by making sure every business has access to all the information that’s available.”