Forbes
reports today how alternative small business lender PayPal is growing fast
in serving small business loans up to $85k faster and simpler than banks. PayPal is stealing your small business customers that sell online or buy through merchants like Lowes where PayPal is the
number one financier of contractor purchase.
They do it with simpler and immediate underwriting looking at information immediately available through owner credit files and validation of
the business cash flow by looking at a cash flow through a PayPal account. PayPal reports loans
are available up to 15% of sales or cash flow through their PayPal account.
Our bank clients use a similar process to more efficiently
and profitably grow small business loans with sound underwriting delivered in
minutes completely online. In addition
to automated review of credit reporting information on owners guaranteeing the
small business loan, the automated technology MinuteLender tracks the deposits going
through the bank customer’s checking account.
Like PayPal, our bank clients use 15% of deposits as a loan target where
other credit information supports a loan.
And like PayPal, MinuteLender
banks can provide loans with sound underwriting efficiently in minutes, risk
rate and monitor accounts on an ongoing basis, drive loan growth and better
serve customers.
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