Small Business Loans <$50k Are Your Biggest Revenue Opportunity

Community banks have nearly half of the market for business loans over $100k according to FDIC data.  They have established excellent underwriting and relationship processes for this market segment, with personal calling, review of tax returns, financial statements and business plans.  Yet, for business loans under $50k, which are 40% of all business loans, community banks have just over 10% of the market, as shown below.

This <$50k small business loan market represents $29 billion in revenue, the potential revenue equal to nearly one quarter of total community bank industry revenue.  Community banks have checking relationships with these businesses, just not the profitable loan revenue and relationship.  Why?  Because the cost to sell, underwrite and serve the 28 million businesses with 10 employees makes it historically not profitable to serve this $29 Billion market where the average revenue per customer is $2,400.

But new cloud-based, digital lending technology is available to banks that enables you to sell, underwrite, risk-rate, monitor and serve this $29 Billion market with loans on your books.  All is done in an automated way with no paper generated and with sound underwriting for just a few hundred dollars.  See what others are finding as their best revenue growth opportunity leveraging existing business customer relationships with technology like Business MinuteLender.