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.
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