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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…
  • 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…
  • Maximize the value of your CRM through relationship lending

    Are you truly maximizing the benefits of your financial institution’s CRM? The ROI of a fully-integrated customer relationship manager (CRM) is no secret. A CRM offers a central record of customer engagements, efficient task management system and accountability of opportunities or assignments. However, streamlining the once time-consuming tasks with a…
  • How community banks can resurge entrepreneurship

    Millennials are expected to dominate 44 percent of the workforce in the next four years, and they’re aiming to take their careers in a new direction: entrepreneurship. According to the 2016 BNP Paribas Global Entrepreneur Report, millennials around 27 years old are setting out for entrepreneurship in droves, rather than…
  • Global cash flow analysis: How to maximize the value

    By Mike McCaffery Credit Risk Consultant With the growing number of small business loans being written by institutions nationwide, the need for better analysis of the potential borrowers’ financial situation is becoming more urgent than ever before. Banks that don’t apply stringent credit analysis processes to smaller loans risk hurting…
  • 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…
  • Survey: Long waits and difficult applications aggravate small business borrowers

    The good news for banks and credit unions? Small-business borrower satisfaction is higher for these lenders than for online lenders, according to a new Small Business Credit Survey by the Federal Reserve. The not-so-good news? Satisfaction with online lenders has increased over the last two years, even as net satisfaction…
  • How to fix the 3 biggest problems with small business lending

    Is growing the small business loan portfolio on your bank or credit union’s agenda? If so, you’re not alone. A recent survey by the American Bankers Association found that 61 percent of banks surveyed plan to moderately or aggressively grow their small business lending (loans between $3 million and $100 million)…
  • Benefits of community banking

    There’s a lot to celebrate in April. From National Canine Fitness Month, National Soft Pretzel Month and National Community Banking Month. As much as we love our dogs and our soft pretzels, we’re especially excited to highlight our community banks. When we began Sageworks, our mission was to help small…
  • For more efficient lending, do this, not that

    Booking new loans can translate into increased earnings for community banks, so long as financial institutions are efficient in how they obtain, underwrite and onboard those loans. Small business loans, in particular, can contribute to an improved bottom line if an institution can increase the loan volume while booking those…
  • How to eliminate data entry from loan underwriting

    Processing, underwriting and approving smaller loans for businesses can be as costly for banks and credit unions as handling larger loans, in large part, because extensive data entry is involved in each stage of the process. Financial institutions rightly concerned about being able to capture this business efficiently should look…
  • Using technology to reclaim the SMB lending market

    Community banks have lost significant ground in the small business lending (SMB) market to large banks in recent years. While the number of small business loans hasn’t changed dramatically, the emphasis of control has. With the vast majority of small business lending being dominated by large banks, and that disparity…
  • Improving the economics of small business lending

    U.S. small business lending is big business, but community banks in recent years have given up market share on this segment as they focus on more profitable lending areas. However, community institutions can reclaim their relationship with small business borrowers and increase earnings through profitable small business lending, according to…
  • Small Business Lending – Lender Beware And Other Advice

    Guest Post By Christopher G. Webbe Senior Consultant, CEIS Some years ago, I worked in the credit department of a New York bank. Having expressed interest in getting involved in C&I lending, I was given a small business portfolio to manage. One of the borrowers…
  • 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…
  • 4 key characteristics of the modern SMB borrower

    During a recent webinar with Sageworks, David O’Connell, a Senior Analyst at Aite Group, presented data from a recent survey by Aite of small and medium business borrowers. Included in this data were some key insights into the small business borrower. 1. They apply early… The Aite survey data first looked…
  • 4 Strategies to grow the SMB lending portfolio

    During a recent Sageworks webinar, bankers were asked why they were interested in growing their small business lending portfolio. 38 percent answered that they were seeing increased demand in the market for SMB loans, and 23 percent responded that their existing small business customers were asking for loans. These results…
  • 6 realities for banks about lending to small businesses

    By Eric Baxley, Chief Marketing Officer, Sageworks Since my last post, I’ve continued to meet with our banks and credit union clients across the country, and some common themes surfaced in the conversations. Most notably, the institutions recognized that change was overdue for their business lending programs. 1. Bank management…
  • Customer road trip: 6 Lessons learned about small business lending

    By Eric Baxley, Chief Marketing Officer, Sageworks I visited 20 customers (banks and credit unions) across the U.S. in the past few months and have learned six things that are common to almost all of them. They want to: 1. Grow their loans, focusing on small business lending with a…
  • 5 Reasons to expand small business lending

    In the 2015 Growth Strategy Survey by Bank Director, the most commonly cited areas for growth were Commercial Real Estate Lending, C&I loans, SBA loans, and Construction loans. This trend of focusing on commercial lending for portfolio growth seems to be gaining, as reflected in a 2016 poll by Sageworks…
  • Loan decisioning technology’s role in small business lending

    Many community banks and credit unions are turning to small business loans as a source of loan growth. In their Spring 2016 Semiannual Risk Perspective, regulators have publicly acknowledged increasing risk in commercial real estate lending, so small business lending seems like it may be an alternative path. Since small…
  • National Small Business Week celebrates the American entrepreneurial spirit

    Guest Post By Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration What creates two out of three net new American jobs; produces close to half of our nation’s goods and services (nonfarm private GDP); and can be found, coast to coast, in every small town, big city and rural…
  • Community banks’ net income, loan balances increase in 2014

    The latest FDIC Quarterly Banking Profile was just released and the industry continues to be led by the nation’s community banks. The positive trends from the third quarter of 2014 continued for the industry sub-set. Net income was up almost 28% over the fourth quarter of 2013 led by higher…
  • Community banks most likely to approve small business loans

    According to a recent survey from four Federal Reserve Banks, small regional and community banks have the highest approval rate for small business loans. Over the first half of 2014, these banks, with an approval rate of just under 60 percent, beat out large national banks (31 percent), large regional…
  • 3 ways for community banks to capitalize on the “buy local” movement

    Wal-Mart, McDonalds, Home Depot. These large corporations are found in almost every town in America. While many consumers choose to take advantage of their less expensive product offerings, a culture shift is starting to take place. Today’s youth and others across all age groups are placing a significant importance on…
  • Filene report: Small business microlending opportunity for credit unions

    Filene Research Institute recently published a report investigating credit unions’ opportunity to develop lasting small business relationships through microlending. According to Filene, there are fewer and fewer community banks available to lend to small business owners. And these owners often have difficulty receiving funding from larger banks. In fact, an…
  • 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…
  • SBA 7A loan program

    In part I of the video series on niche lending strategies for financial institutions planning to shift their loan portfolios from commercial real estate to commercial and industrial loans, we discussed accounts receivable factoring and how that is one way to achieve higher profitability. Today, we discuss how banks can…