How Intelligent Data Can Bridge the Gap Between Banks and SMBs Seeking Capital

Lendflow’s unique decisioning engine is redefining how traditional financial institutions underwrite SMBs looking for capital.

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By 
Jon Fry
 | 
 | 
February 25, 2022

Traditional financial institutions can sometimes default to one-size-fits-all models that make it difficult for SMBs to access the capital they need to prosper. Stringent processes, driven primarily by heavy regulatory constraints, can keep SMBs from applying for a loan they need to support their business. For those that do manage to successfully submit their applications, the wait for approval can be lengthy — sidelining SMBs as they wait to obtain vital capital.

There’s no doubt that this system of obtaining capital is broken  — for SMBs and the lenders themselves. But it doesn’t have to be this arduous. Not now, when Lendflow is providing better alternatives to the old manual processes  banks innovate their underwriting process.

 

Correcting the Old Way of Connecting SMBs to Capital

More and more, financial institutions are leaving behind a once-lengthy, inefficient loan application process for something better. Until recently, even when loans were approved, the strings attached might have been too excessive for SMBs to handle. 

As long as financial institutions lacked the full data profile of each SMB, they couldn’t properly assess each applicant’s specific needs or risk profile. Without this fully vetted data on each SMB, it’s no wonder banks failed to implement tailored underwriting processes on an individual basis. 

Remember: lenders and banks have to adhere to strict rules and regulations, which can leave their hands tied when it comes to innovating their lending processes. The technology available to traditional lenders can often stifle innovation and make it difficult to work with innovative fintech partners, access better data on SMB applicants and apply optimal underwriting models.

Before Lendflow empowered lenders with a better method, it wasn’t uncommon for SMBs to either be turned down for loans or offered exceedingly high interest rates.


Transforming SMB Lending with Intelligent Data

By using advanced data and decisioning tools to get full insight into SMBs, banks and other lenders can close the gap and identify pockets of opportunity to increase their reach. Lendflow builds a complete picture of each SMB based on all, not some, of the available data, to give banks a superior way to underwrite SMBs, while minimizing risk for lenders

Through smarter data use and automated processes applied by Lendflow’s decisioning engine, banks and lenders can now automate and optimize their underwriting processes for faster, more efficient risk assessment of SMBs. This means perfectly qualified borrowers that may not have looked as good on paper before no longer slip through the cracks.

With Lendflow’s superior credit decisioning engine and intelligent data tools, lenders can leverage SMBs’ cash flow analysis, accounting and invoicing data, payroll data, social scoring, and ecommerce data — in addition to the standard KYB, KYC and fraud checks they’ve always relied upon — to quickly build a more comprehensive financial picture of SMBs seeking capital. As a result, banks and lenders can find new qualified SMB customers looking for loans or other financial products.

This additional data helps financial institutions improve their risk assessments and customer acquisition strategies. Better data assessments lead to better risk models which lead to more qualified SMB customers. Through its advanced credit decisioning engine, Lendflow creates a win-win situation across the board, boosting lenders’ loan conversion rates while also improving the SMBs’ chances of getting the capital they need.


Access Better SMB Data and Enhance Lending with Lendflow

Our solution is driven by our one-of-a-kind decisioning engine. We standardize, aggregate and orchestrate SMB data already available from a variety of data and service providers — empowering lenders to leverage more robust data profiles when assessing SMB capital applications in a way that meets their underwriting requirements. A faster and smoother process for SMBs improves outcomes for lenders, who can now easily identify and approve the most qualified SMBs. 

Lendflow’s unique credit decisioning engine provides both traditional financial institutions, non-traditional lenders and fintechs with the intelligent data they need to quickly and efficiently connect SMBs to capital. 

Lendflow provides embedded lending infrastructure that enables every financial institution and fintech to build, enhance, or embed financial products within their ecosystems. Through Lendflow, lenders see big efficiency gains by tapping into better data and more efficient tools. Instead of copying and pasting data to get a clearer picture of an applicant, all lenders have to do is head to Lendflow’s decisioning platform, choose the data they want to pull from each SMB applicant in a workflow that is optimized for both efficiency and cost savings, and watch their credit decisioning process work like magic in a matter of seconds.

Want to learn more about how intelligent data and automated decisioning tools can help you connect with qualified SMBs? Contact us today to see how you can start taking advantage of the benefits offered by Lendflow!

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