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  • Making small business loans profitable

    At the risk of stating the obvious, bankers are generally good with numbers. So it makes sense that lenders and financial institutions are more enthusiastic about making the larger business loans than making the smaller loans. After all, it takes as much time to process a small loan as a…
  • Small businesses want advice; is your bank offering it?

    Community bankers establish close relationships with many of their borrowers and in fact, it is these relationships that many community banks tout as one way they are superior to their larger rivals. When it comes to small business customers, however, community banks have untapped opportunities to deepen relationships beyond the…
  • Sageworks’ LeCorgne shines at BAI Beacon

    Financial institutions can profitably reclaim their small business lending market by using technology to add speed and efficiency to the lending process, Sageworks Vice President of Banking Neill LeCorgne told banking industry leaders during the BAI Beacon Conference in Orlando, Fla., recently. LeCorgne, the former president and director of a…
  • What banks can learn from what business borrowers dislike about online lenders

    As bankers know, online and “alternative” lenders are a small but growing group of players in the business lending market. Small business loans represented about $7.4 billion of originations from alternative lenders in 2016, according to data from Morgan Stanley’s Alternative Lending Group and the Cambridge Centre for Alternative Finance.…
  • What is digital lending and how can community banks, credit unions benefit?

    Digital lending is the use of online technology to originate and renew loans in order to deliver faster and more efficient decisions. Many people know of non-bank digital lenders like Rocket Mortgage and Kabbage that market directly to consumers and businesses, but digital lending also encompasses activities of traditional financial…
  • Sageworks’ Martin: A better borrower experience is worth offering

    Banking leaders can look at the apps available in their own everyday lives to understand how small business and middle market borrowers’ expectations for speed, convenience and transparency have been shaped, according to Sageworks Vice President Steven Martin. Sageworks VP Steven Martin speaking at the Barlow…
  • How long does it take to close a commercial loan?

    Banks have a wealth of information available to them, and if they use the right tools to dissect that information, they can make major process changes that improve what matters most to customers – both customers of today and tomorrow. For example, according to a recent poll during the Sageworks…
  • Critical pain points for business borrowers

    Interest rates may be important to small business borrowers, but when it comes to how satisfied they are with recent borrowing experiences, it’s not all about the money. Instead, applicants have more gripes about the process they encountered at financial institutions than about the financial aspects of their transactions, according…
  • Banks and CDFIs: Partnering for community impact

    Guest Post By Paige Chapel, President & CEO, Aeris Most banks recognize that their enterprises can only thrive if their customers also do. And to thrive, those customers need economically diverse and healthy communities in which to live and work. Partnering with local organizations to promote the health of those…
  • 5 Common errors in global cash flow analysis

    For banks and credit unions, the term “borrower” can often take on many meanings – especially in complex situations where the “borrower” can have multiple owners, businesses, real estate entities and/or farms. When combining personal financial information, the analysis can get even more complex. To more objectively calculate a global…
  • NCUA proposed rule: MBL flexibility for credit unions?

    On June 18th, the board of the National Credit Union Administration (NCUA) unanimously approved five items, including a proposed rule aimed at modernizing member business lending (MBL). The rule would provide greater flexibility and autonomy for credit unions to better meet the needs of their members. Small business lending at…
  • Why is net profit margin important?

    There are numerous qualitative measures that can indicate expected financial performance when evaluating credit risk in new and existing business relationships. However, it’s important to consider the key metrics that accompany the 5 Cs of Credit. In addition to the Debt Service Coverage Ratio, it is important to measure and…
  • What would credit unions like to improve about their MBL programs?

    While credit unions have continued to experience growth in traditional lending areas, many are also eager to grow their member business lending (MBL) programs. Others may be simply deciding to create a MBL program of their own in 2014. Loans in this category are appealing to credit unions because they…
  • What is relationship-based banking and lending?

    This video is a segment taken from a recent webinar hosted by Sageworks and CECO Management Consultants. For the full recording, visit “Relationship-Based Banking: How to Balance Risk & Relationships.” From the video Relationship-based banking is defined as the provision of financial services by a financial intermediary on the basis…
  • Annual small business lending report

    The Small Business Administration (SBA) released the Small Business Lending 2012 annual report last month. There was good news for small businesses as the number of loans went up from 21.3 million to 23.5 million last year. However, total lending to small businesses decreased from $606.9 billion to $587.8 billion…
  • Looking for a loan? Research your options first

    Applying for a business loan can be an intimidating and arduous process, and it can be confusing to have an application rejected with very little explanation. Mark Swanson, acting president and CEO of Northside Bank in Adairsville, Georgia, sees this frequently when he meets with business owners who have been…
  • Credit unions can build member business lending for improved exam results

    Business lending has been increasing among credit unions in recent years, and with this increase has come an increased focus on member business lending (MBL) and the specific risks associated with it, according to an article in CUES’ Credit Union Management magazine. Brian McLaughlin, president and founder of Tullamore Consulting…
  • Keys to a sound member business lending program

    If your credit union conducts member business lending (MBL), National Credit Union Administration wrote a must-read article discussing four critical elements of a sound member business lending program. Capital adequacy and planning Boards of directors should define their risk levels and accordingly ensure the credit union has enough capital, sometimes…
  • Accounts receivable factoring: A niche C&I lending strategy

    The slow growth economy has prompted many financial institutions to shift their loan portfolio from commercial real estate to commercial and industrial loans. However, these institutions face a challenging market landscape, weak loan demand from qualifying borrowers and regulatory scrutiny. To help overcome some of these challenges, Justin Barr, president…
  • Potential risks for institutions new to C&I

      Since more banks and credit unions have started to expand their C&I portfolios, the subtleties that come with C&I lending could expose banks to several, specific risks if they lack experience and resources. Different data sources. For financial institutions accustomed to consumer or development loans, C&I loans require a…