A significant step for businesses in Israel: The Knesset approved the establishment of a credit data registry
The Knesset approved a new and important bill tonight in its second and third readings, aimed at establishing a credit data registry for businesses in Israel. The new law is expected to change the way banks and financial institutions assess the financial status of small and medium-sized businesses in the country.
The new registry will consolidate comprehensive financial information on businesses, which will allow lending institutions to obtain a clearer and more accurate picture of the risk level of each business. Until now, many small businesses found it difficult to prove their financial stability to banks, which made it hard for them to obtain loans under favorable terms.
According to government estimates, the move is intended to increase competition in the business credit market. When information is more transparent and accessible, businesses will be able to compare offers between different banks and credit companies, thereby benefiting from lower interest rates and better access to sources of funding.
The new law is considered significant news for many business owners, who often struggle with cash flow difficulties. The state hopes that the establishment of the registry will help businesses grow, invest, and continue to contribute to the Israeli economy.
Now, following the approval of the law, the authorities will begin the technical setup process for the registry. This is a significant structural change in the financial system, which is expected to affect thousands of businesses across the country in the coming years.