The fact of the matter is that large financial institutions court high value commercial loans. The exact average value of a small business loan from a big national bank varies depending on the source, but it’s well over half a million dollars. This number is more than what most small businesses would apply for or need. Not to mention that small business owners usually have a hard time meeting large banks’ stringent loan qualifications (very strong credit scores, established businesses, and strong financials) anyway.

It’s also a matter of fact that this opens plenty of opportunity for community banks and credit unions to court small businesses whose loans are suited perfectly for their institution size. The average amount of a small business loan at a smaller bank is just under $200,000, again the exact amount depends on the source of data.

Banks are taking advantage, and officers are courting small business owners. However, their commercial lending software designed to streamline loan decisions can hinder and slow the process, especially if the software lacks the capability to customize loan presentation templates.

Lack of template customization or software at all is a problem for loan officers trying to get small business loans approved. The problem is that every small business is different.

To portray the business in the best light, bank officers take liberties with their loan presentations in order to fully tell the business’s story. When commercial lending software is too flexible or when an in-house created document is used, required and additional information can end up anywhere.

Decision makers spend too much time locating the information they need to make the best decisions because there is no standard format that guides them. The solution is commercial lending software that is customizable to your officers, decision makers and types of commercial loans. For example, templates customized to your bank:

  • Gives officers a framework in which to include required information, as well as a specific place to include other pertinent, but not required information that gives the big picture
  • Gives decision makers a clear path to the information they need, plus a consistent process for review
  • Are customizable to different commercial loan types to streamline your internal processes
  • Gives customers a better, faster experience since they get decisions quicker

Whether > $500,000 or < $200,000, the loan cost for a small business loan largely remains the same despite the size of the bank. Commercial lending software for banks gives officers a framework for loan presentations, gives decision makers a clear path for a consistent review process, streamlines processes when customized to commercial loan types, and provides customers a better, faster loan experience. Learn more about our commercial lending software, Square 1 Credit Suite. A demo can show you quickly how it could be customized to avoid undermining your loan presentations.

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