Good loan decisions require good data
And let’s face it—the traditional underwriting criteria—things like credit scores and last year’s tax returns—simply aren’t up the task. That’s because they’re backward looking and don’t provide visibility into how a business is performing right now.
A merchant platform lending program, powered by LendingFront, changes everything. LendingFront helps you tap into real-time business insights, such as cash flow, to extend a variety of banking products. Best of all—it’s secure, low risk, and includes baked-in, all-digital repayments.
How it Works
Determine your risk appetite and credit policy
LendingFront’s rules-based automation settings make it easy to establish a credit policy that fits your financial institution’s risk appetite.
Evaluate a business’ cash flow history
Examine credits, debits, what the business spends money on, and the extent to which cash flow is seasonal. Easily know whether the business is expanding sales and hiring more workers—or if it’s trying to purchase inventory for the upcoming holiday season.
Send pre-approval
Automatically send one or more credit offers, and allow the merchant to adjust the amount and term within the parameters you set.
Send digital contract
A simple, one-click acceptance of terms is all that’s needed to close the deal. LendingFront integrates with your preferred contracts provider, so there’s no need to handle physical paperwork or gather wet signatures.
Distribute capital
Distribute capital in less than 24 hours and meet your borrowers’ need for a fast, efficient (and less-costly-to-you) process.
Get paid back
Automatically get repaid every time a transaction takes place.
More than just the loan
Leverage insights into real-time business activity to extend other banking products such as credit cards, payroll services, and more
Determine your risk appetite and credit policy
LendingFront’s rules-based automation settings make it easy to establish a credit policy that fits your financial institution’s risk appetite.
Evaluate a business’ cash flow history
Examine credits, debits, what the business spends money on, and the extent to which cash flow is seasonal. Easily know whether the business is expanding sales and hiring more workers—or if it’s trying to purchase inventory for the upcoming holiday season.
Send pre-approval
Automatically send one or more credit offers, and allow the merchant to adjust the amount and term within the parameters you set.
Send digital contract
A simple, one-click acceptance of terms is all that’s needed to close the deal. LendingFront integrates with your preferred contracts provider, so there’s no need to handle physical paperwork or gather wet signatures.
Distribute capital
Distribute capital in less than 24 hours and meet your borrowers’ need for a fast, efficient (and less-costly-to-you) process.
Get paid back
Automatically get repaid every time a transaction takes place.
More than just the loan
Leverage insights into real-time business activity to extend other banking products such as credit cards, payroll services, and more
Square-like lending in a white-labeled package
LendingFront is the only turnkey technology platform that enables financial institutions to start, or scale, a merchant platform lending program without having to build in-house.
Why do merchant platform lending?
Built-In KYB/KYC
Digitally transform every step of the SMB lending process, from originations to servicing and everything in between (seriously—that includes document collection, data aggregation, rules-based automation, offer presentation, e-contracts, servicing, and collections)
Increased Customer Stickiness
It’s a simple fact: a customer with a loan from you is far less likely to jump to a competing bank or credit union.
Higher Close Rate
In a merchant lending program, everything begins with a bank-initiated pre-approval. There’s no wasted time processing borrower-initiated applications, which means higher approval rates and lower costs.
LendingFront By the Numbers
7 to 1
One LendingFront customer consolidated 7 separate systems required to run their lending program into just 1 (and yes, that “1” was us.)
900
Number of loans made by a LendingFront customer in the year after going live. Before LendingFront? Just 27.
105%
Percentage increase in funded dollars year/year for one LendingFront (before and after LendingFront)