The juice was just not worth the squeeze…

Historically, the economics of small business lending have been untenable – smaller dollar loans, time-consuming manual processes and higher risk.

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Home|Small Business Lending Challenge

Many lenders don’t have a separate process

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Small business loans are often handled differently, depending on size. The consumer lending approach is based largely on credit score, which offers insufficient rigor for small businesses. On the other hand, commercial lenders lean heavily on manual analysis of financial statements, resulting in excess process.

judi smb lending challenge process

It can take 7 days (or more) to underwrite a small business loan

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judi smb lending challenge underwriting timeline

“I would rather eat a bag of nails than collect financial statements from a small business.”

Source: Chief Lending Officer at a $1B community bank

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Did you know?

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Armed with an easy digital experience, fintechs like Square are generating billions of dollars in loans to small businesses – loans that should be right in your wheelhouse.

“With the arrival of fintechs on the small business scene, new battle lines for acquiring customers are being drawn…”

Source: The Economist, What is shaping the ecosystem
of small business lending?

How can community lenders take advantage of the opportunity in small business lending?