Small business loans under
$100k are not profitable for financial institutions according to the Harvard
Business School Small Business Lending Study. Yet, over half of small business loans are in
this size, as 27 million of the 30 million small businesses have 10 employees or less. Community and regional financial institutions
serve this market with loans, and one-third of their business loans on the books are under $50k. But they make no money on this segment. This also means a $40k loan can
get overlooked in monitoring and risk management as they focus on larger more profitable loans.
Digital lending not only
automates the process of lending to be profitable, but also automates the risk
rating and monitoring of loans made.
Automated tracking and alerts for factors such as age, usage of the loan, guarantor credit
score, business deposit trends and NSFs are provided with monthly updates and reports.
Digital
lending will generate $30 billion in revenue by 2025, and financial
institutions have the competitive advantages to win in the competitive
environment. Compared to non-bank online lenders, financial institutions
have a much lower and more stable cost of funds, existing customer
relationships to leverage, and established compliance. Financial
institutions just need the digital technology, like MinuteLender.®
When Only the Best Loan will Do.We believe small business’s should flourish and prosper We are passionate about helping small business owners access the money they need to grow or manage their cash flow So we have taken the work out of getting a business loan And selected the best business loans in the market place for youfast business loans
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