Grow Your Small Business Segment with Digital Underwriting

Emma Schoth

Emma Schoth

September 29, 2022


Legacy processes for underwriting small business loans are extremely time consuming and tedious. Lenders can often spend hours, or even days, underwriting loans manually. 

This leads to inefficiencies within the loan origination process, and ultimately, a delay in loan funding, creating a poor borrower experience.

Financial institutions wishing to scale their small business segment, will find it difficult to grow without hiring more underwriters, which in turn decreases overall profitability. 

Using digital underwriting, lenders can reduce the time it takes to underwrite a loan and open the door to a multitude of new opportunities for growth in small business.

Grow Your Small Business Segment with Digital Underwriting

Numerated’s digital underwriting solution was purpose-built for financial institutions to transform the way that they underwrite small business loans. 

Lenders using the Numerated platform to accelerate underwriting in the small business segment can find growth opportunities in the following ways: 

  • Increase Profitability in the Small Business Segment
    Historically, it has been difficult for lenders to find profitability in small business lending, due to the complexities of the underwriting process. With every touchpoint for the lender, the profitability of a loan over its lifetime decreases. Legacy underwriting processes require lenders to spend hours spreading and analyzing financial data from borrowers before reaching a decision. This process is very expensive and also limits the number of loans that can be processed.

    With Numerated, lenders can now underwrite business loans faster and more efficiently without investing any additional resources, creating a new opportunity for growth and development of the small business segment at greater scale. This level of innovation leads to an increase in profitability for individual loans and the segment as whole. 
  • Spend More Time on Relationship Building
    Community institutions are known for the best-in-class customer service they provide to small business customers. Many lenders leverage this service as a key point of differentiation between online only business lenders, but with legacy underwriting processes in place, it is difficult for employees to make the time to build valuable customer relationships with their borrowers.

    In order to maintain the level of service borrowers expect, it’s important that employees get the time back into their days to continue building and maintaining meaningful relationships with their customers.

    The Numerated platform enables lenders to underwrite business loans up to 90 percent faster than manual processes through the use of artificial intelligence and automation. Underwriters can now spread years of financial information in minutes, maintaining 100 percent accuracy, every time.

    Once the documents have been spread, pro-forma ratios are quickly calculated with the click of a button to provide financial institutions with an understanding of the business owner’s financial status.

    The platform also provides credit decisioning automation, so lenders can easily leverage data to automate credit decisioning and with the ability to incorporate manual oversight and adjustments. With these efficiency gains, lenders can now spend more time on building relationships with customers. 
  • Create a Better Loan Application Experience for Borrowers
    It is understood by most lenders that legacy underwriting processes affect the efficiency of back office teams; however the impact that they have on the borrower experience is often overlooked. Many financial institutions have created efficient digital experiences on the front end of the loan application for borrowers, but without implementing a process that is end-to-end for both the lender and borrower, the experience will fall short.

    Creating an end-to-end experience means digitizing every part of the loan origination process, including underwriting. When lenders use manual processes for underwriting, it could take weeks for a borrower to receive loan approval. Wait times like these will lead to customers choosing other options that provide a faster, more efficient, experience.

    With fintech competition promising loan funding to small businesses in a matter of days, it’s more important than ever that community institutions continue to innovate their underwriting processes, if they want to remain competitive.

    The Numerated platform enables lenders to fully underwrite a $1 million loan in only ten minutes. Efficiency gains like these, empower lenders to provide customers with shorter wait times for loan funding, creating a better overall experience for the borrower. 

Transform Your Small Business Segment with Digital Underwriting 

Lenders leveraging the Numerated platform can drive efficiency and cost savings that impact the bottom line and enable rapid growth within the small business segment. Contact us to learn more about how you can transform your small business segment with Numerated today. 

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