BankerCollege

Lending to small business is expensive because of origination, underwriting, capital, and many related costs. Most banks lose money when they make a business loan below $250K. In some cases banks avoid making small loans, missing out on a relationship opportunity and providing an inroad for Fintech lenders. Other banks either do not understand their loan economics or accept their losses, relying on deposits and the sale of other services for relationship profitability, a risky approach.

This lending training focuses on highlighting the small loan problem and providing specific and practical near-term steps banks can take to turn losses into profits. As will be discussed, the solution involves addressing organizational issues, pricing opportunities, revisiting risk criteria, and, potentially, implementing selected technology.

Attendees will learn:

• 6 reasons why the Small Business segment should be a priority
• Illustration and case study showing why most Small Business loans destroy value
• 10 critical questions for evaluating your institutions Small Business lending structure
• 5 ways that banks and credit unions can work with Fintech lenders
• 3 opportunities that banks and credit unions can seize on to improve Small Business loan profitability