To upgrade or not, a classic dilemma! Do you suffer the pains of transition and the impending costs of upgrading software now, or stick with what is at least functioning but has so many third party hacks that you need a Ph.D. in how to manage the system? While there are many Loan Origination Systems…
Read MoreTime is money. And when you are running a small business, this is especially true. Lenders know this. But in a world of technological advancements—a world in which you can hail a ride with your smartphone or find a long lost friend in seconds—the process of obtaining a small business loan should be more intuitive…
Read MoreWhen we set out to create the best software tool for lending to small businesses, we included five years of experience and dozens of conversations stakeholders across the country. Our top two discoveries were: Existing loan software focuses on providing backend solutions for lenders and does little to inform borrowers of options and progress. The…
Read MoreThe problem with lending money is that “borrowers know much more than lenders about their own ability and willingness to repay,” yet, history (and present reality) would demonstrate lenders do not believe this to be true. No one disputes a person or organizations right to protect their wealth or financial interests and their right and/or…
Read MoreAfter several years of work in the microlending space, with the generous support from the Ewing Marion Kauffman Foundation, we’re announcing our latest endeavor to increase access to capital through the creation of a new customizable digital platform called Lenderfit. Lenderfit will allow other lenders to offer the same non-collateralized, non-credit based loan product that…
Read MoreIn many communities today, it is still increasingly difficult for individuals to start a successful business. Most entrepreneurs (81% - according to the latest data from the Kauffman Foundation) require some degree of alternative finance - they rely on their own savings and credit, turn to family and friends, and work to create early sales…
Read MoreA major hurdle that any small business owner must overcome is that of poor or nonexistent credit in an imperfect financial system. In the US there are three major Credit Bureaus who operate as “trusted third parties” to help evaluate repayment risks. All three rely on evaluation methodology created by the Fair Isaacs Corporation, commonly…
Read MoreThe institutions which facilitate our economic life are prone to excluding the most vulnerable consumers among us. Too many people find it difficult (or altogether impossible) to access many parts of the formal economy. For example, twenty-five million American households are underbanked, and nine million more do not have a bank account of any kind. Banks, in…
Read MoreIn conversations with small business lenders, it’s common to hear statements about there being “plenty of money to lend, but a lack of qualified borrowers.” With access to capital being a top issue for small business owners nationwide, there’s certainly no lack of demand. Businesses that would not only service debt if the opportunity were extended,…
Read MoreStarting the business from scratch was nearly impossible for Darryl Goodner, co-owner of Louisville Cream, a small-batch ice cream company that uses local grass-fed milk to make a unique flavors that rotate from month to month. He is one of many hard-working entrepreneurs struggling to identify adequate sources of capital to grow their business. Roughly 8,000…
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