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Wednesday, September 2, 2015

How PayPal Small Business Loans Are Reaching $1 Billion

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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