In this digital age, commercial borrowers expect a seamless, easy experience when they apply for working capital just like when they apply for a personal loan. The days of sending a fillable PDF to a lender to wait for a response and then to go back and forth to supply a myriad of documents and then wait again for an answer are quickly becoming obsolete.
So What Exactly Do Business Owners Want?
- CONVENIENCE. They are busy trying to run and grow their businesses. They want to apply from your website at any time, day or night, from any device and at their convenience even when your underwriting team is on vacation, just like they can conveniently apply for a personal loan online.
- EFFICIENCY. Business owners want to be able to securely exchange all documents lenders require in one step without manual paperwork, scanning of documents, multiple emails, and phone calls. When they don’t feel the process is efficient from the start, they look to other lenders who provide a better experience.
- VALUE. With the advent of Open Banking, business owners can now choose to share their bank transactions with a lender. They can also choose to connect their Accounting system software. Consent plays a central part in increasing a business owner’s value proposition and increases trust in the relationship. Rather than having to prepare documents specifically for being considered for funding, they can choose to share their information with lenders directly, providing added value.
- SPEED. Business owners squeezed for capital need a quick response. At any given time, there may be 3-4 lenders looking at the same deal. Borrowers are more likely to go with a lender that responds quickly. If you don’t respond fast, another lender will.
- TRUST. Business owners are in search of a transparent process without feeling like they have to answer 20 questions and engage in lots of back and forth just for the lender to consider them.
Non-bank digital lending is growing at a rapid pace. Showing year-over-year growth of 93 percent in 2015 and 58 percent in 2016, non-bank digital lending is expected to reach $122 billion by 2020. That’s a ten-fold increase in only six years.*American Bankers Association ABA State of Digital Lending
So how can a lender improve speed, efficiency, value, and convenience and meet the needs of business owners? A true all-digital white label application connected with a smart underwriting software allows your underwriting team to view the information shared by business owners quickly, easily, and have all underwriting resources available in one place at the touch of a button. Less questions, less hassle, more trust, speedier decisions, more efficient underwriting. Think technology like this doesn’t exist or that you have to build it? Think again. Powerful underwriting cloud-based software solutions are now available to all types of commercial lenders.