How Indirect Lending Improves Client Retention for Banks
By: Web Finance Direct
Client retention is an important metric for traditional lending channels, such asWith over 30.7 million small businesses in the United States, entrepreneurs need a reliable source for financing. Since the Great Recession, however, many small business owners do not meet the requirements for traditional loans, have reached their borrowing limits, or need a program that falls outside of the products their banks offer. Indirect lending provides services and programs that banks can use to retain business clients and give them the funding they need.
Financing Outside of the Box
Traditional loans do not always fit the needs of small business owners. Some want to lease equipment. Others need to improve cash flow or position themselves for growth, and taking on debt would be too much of a burden. Indirect lending offers a full complement of programs designed to help small businesses get the funding they need, such as unsecured business lines of credit for startups. Banks can leverage these programs and tailor them to their business clients.
No one wants to tell clients that they do not qualify for financing. Many small business owners do not have the credit ratings or established financial histories to meet the requirements for traditional loans. Instead of turning down clients and risking them taking their business elsewhere, indirect lending can help banks offer more options regardless of credit ratings or financial history. The solutions offered through indirect lending are accessible by new and small business owners, so banks can provide solutions and increase client retention.
Indirect Lending is Secure and Confidential
Banks are understandably wary about offering lending products that are not their own. Indirect lending offers a secure and confidential process. Banks can reach out to an indirect lender to see if a client is approved for a specific program without placing the prospective applicant in direct contact. This provides a buffer of confidentiality between the bank, the client, and the indirect lender. Additionally, if the client tries to go around the bank and deal with the indirect lender on their own, the indirect lender will send them back to the bank.
Indirect Lending You Can Trust
At Web Finance Direct, we offer solutions based on the needs of your bank’s portfolio. We work with lending managers to understand the requirements of their clients. We have our own network of dealerships, businesses, and alternative lenders who can provide financing ranging from working capital to equipment, credit,, cash flow solutions, growth financing, commercial real estate, and more. We can also assist in filling your portfolio with the loans you require and find a buyer for our book of loans once capacity is reached. Web Finance Direct only engages in confidential and ethical practices with our banking partners. If you want to expand your offerings, grow your portfolio, and improve client retention, contact Web Finance Direct today and learn more about our indirect lending programs.