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Saturday, September 30, 2017

The Importance of Checking Account Data in Small Business Lending and Credit Monitoring

Savvy community FI lenders have long watched the checking accounts of their small business loans under $100,000.  Now, capturing the checking account is a critical strategy in small business digital loan acquisition and credit management, with seven key benefits shown below: 

  • automated loan offer with checking information, 
  • safer and quicker funding to the checking account, 
  • improved underwriting with checking deposit history analysis, 
  • improved credit monitoring with checking analysis, 
  • fraud elimination by funds linked to established account in the FI, 
  • simplified compliance with established KYC with checking accounts, and
  • enhance relationship profitablitity.


Long before missed payments or loan defaults, they could see in the checking account declining deposits and rising NSFs as early warning signs.  Coupled with high loan utilization and falling guarantor credit score, risk management for these loans could be proactively managed much better than with traditional analysis of financial statements and tax returns.  Financial statements and tax returns for small businesses captured just once a year often do not reflect the status of small business, but deposits and other checking behaviors provide the most current assessment of loan risks.

That is why our MinuteLender® digital lending platform marries checking account analysis with the owner/guarantor credit report in making and credit monitoring small business loans.  Our clients have us credit monitor all their loans with the key factors of deposit activity, owner-guarantor credit score soft-pulled quarterly, NSFs and loan balance.  And with account aggregation, we attract new customers by pulling as part of their application their deposit history from their existing bank – all completed with e-sign in minutes.


Learn more at www.rcgiltner.com.



1 comment:

  1. Thank you for sharing such valuable information and tips. This can give insights and inspirations for us; very helpful and informative! Would love to see more updates from you in the future.

    Small Business Accounting

    ReplyDelete