3 fintech tools to speed up the business loan application process
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Business loan applications can be made simpler thanks to a few fintech tools that have been developed and primarily used by alternative lenders.
With some banks declining many business loans because they deem them too small or too risky, fintech lenders have stepped in to turn around loan applications in the space of a few hours with online applications taking brokers as little as five minutes to complete.
So next time you’re looking for a suitable lender for your business clients, pay attention to the tech tools they offer to ensure a fast and seamless application process.
User-friendly Online Broker Portal
Make sure the lender offers access to a broker portal that is easy to use. From when you make the referral, to the client completing their application, to the outcome of the application, it’s important to have full visibility of the entire journey. From submission to outcome, you should be able to see in real-time how the lender is progressing your client’s application. At Lumi, we pride ourselves on the usability of our broker portal, which has been getting overwhelmingly positive feedback from our broker partners.
AI for real-time decision-making
One of the key differentiators between fintech and traditional lenders is the use and development of our artificial intelligence. Artificial intelligence is used to gather a borrower’s various data points, painting a picture of their credit profile in real-time. This allows the fintech lender to process a loan application much faster than a traditional lender ever could. Each fintech has developed its own intellectual property, and here at Lumi, we have designed an algorithm that helps us look at the client’s current credit health, rather than relying heavily on outdated financial documents, which greatly helps with getting deals approved faster.
Simple online application process
Another important feature to consider when choosing an alternative lender is the online application process itself. How straightforward is it and what kind of documentation is required? Again, the lender’s AI system will do the hard work for you and you’ll be able to apply in a few simple steps. At Lumi, our minimum requirements are a valid ABN, six months in business and $5K monthly turnover. We also offer low doc up to $150,000, which makes the online application process even simpler.
Getting funding from traditional lenders can be difficult for SMEs that don’t have any assets or extensive credit histories. Fintechs use technology to fill that gap in the market by offering a more streamlined service to business clients, so they can get on with growing their business.
For brokers, the benefit is obvious – we turn applications around quickly and easily so you can help more clients get what they need.